Section 3-306.1 - Diligent search - When deemed completed or unnecessary. - Maryland Statutes

§ 3-306.1. Diligent search - When deemed completed or unnecessary.
 

(a)  When deemed completed.-  

(1) A diligent search required by § 3-306 of this subtitle shall be deemed completed if: 

(i) the insured or the surplus lines broker or insurance producer obtains declinations of a risk from three authorized insurers that are writing the particular kind and class of insurance in this State; and 

(ii) the declinations are included in the affidavit required under § 3-307 of this subtitle. 

(2) In addition to the requirement of paragraph (1)(i) of this subsection, an insurance producer shall obtain a declination from each insurer for which the insurance producer has been appointed that the insurance producer knows, or should know, is actually writing on a broad basis the particular kind and class of insurance sought. 

(b)  Diligent search not required.- A diligent search may not be required: 

(1) for any coverage on a list of eligible surplus lines coverages compiled by the Commissioner; or 

(2) if the diligent search is waived by a commercial insured in accordance with the process determined by the Commissioner. 

(c)  When required.- Notwithstanding the renewal provisions of § 3-306(c) of this subtitle, a diligent search shall be required for each renewal of a personal lines insurance policy written through a surplus lines insurer. 
 

[1998, ch. 751; 2001, ch. 731, § 1.]