EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1148*
HOUSE BILL 1148
C4 5lr3090
By: Delegates Wivell, Baker, Hinebaugh, and Valentine
Introduced and read first time: February 6, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Property and Casualty Insurance – Lapses in Coverage – Prohibition on Denial 2
FOR the purpose of prohibiting a property and casualty insurer from denying coverage 3
based on a prior lapse in coverage of the applicant under certain circumstances; and 4
generally relating to property and casualty insurance. 5
BY adding to 6
Article – Insurance 7
Section 27–501(u) 8
Annotated Code of Maryland 9
(2017 Replacement Volume and 2024 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Insurance 13
27–501. 14
(U) WITH RESPECT TO PROPE RTY AND CASUALTY INS URANCE, AN INSURER 15
MAY NOT DENY COVERAGE BASED ON A PRIOR LAP SE IN COVERAGE OF TH E 16
APPLICANT IF THE LAPSE IN COVERAGE WA S: 17
(1) DUE TO THE CHOICE OF THE APPLICANT; AND 18
(2) NOT DUE TO LOSSES INCURRED BY OR THE CLAIMS HISTORY OF 19
THE APPLICANT. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
October 1, 2025. 22