EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb1148*
HOUSE BILL 1148
C4 (5lr3090)
ENROLLED BILL
— Economic Matters/Finance —
Introduced by Delegates Wivell, Baker, Hinebaugh, and Valentine
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at __ ______________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Property and Casualty Homeowner’s and Renter’s Residential Condominium 2
Unit Insurance – Lapses in Coverage – Prohibition on Denial 3
FOR the purpose of prohibiting a property and casualty an insurer, with respect to 4
homeowner’s insurance or renter’s residential condominium unit insurance, from 5
denying coverage based refusing to issue a policy based solely on a prior lapse in 6
coverage of the applicant under certain circumstances; authorizing a property and 7
casualty insurer to require an applicant to submit a certain affidavit; and generally 8
relating to property and casualty homeowner’s and renter’s residential condominium 9
unit insurance. 10
BY adding to 11
Article – Insurance 12
Section 27–501(u) 13
Annotated Code of Maryland 14 2 HOUSE BILL 1148
(2017 Replacement Volume and 2024 Supplement) 1
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That the Laws of Maryland read as follows: 3
Article – Insurance 4
27–501. 5
(U) (1) WITH RESPECT TO PROPE RTY AND CASUALTY HOMEOWNER ’S 6
INSURANCE OR RENTER ’S INSURANCE, AN INSURER MAY NOT D ENY COVERAGE 7
BASED ON A PRIOR LAP SE IN COVERAGE OF TH E APPLICANT IF THE LAPSE IN 8
COVERAGE WAS : 9
(1) (I) DUE TO THE CHOICE OF THE APPLICANT ; AND 10
(2) (II) NOT DUE TO LOSSES IN CURRED BY OR THE CLA IMS HISTORY 11
OF THE APPLICANT . 12
(2) AN INSURER MAY REQUIR E THAT AN APPLICANT SUBMIT AN 13
AFFIDAVIT STATING TH AT THE APPLICANT DID NOT INCUR A LOSS DURING THE 14
PRIOR LAPSE IN COVER AGE IF AN APPLICANT FOR R ESIDENTIAL CONDOMINI UM 15
UNIT INSURANCE EXPER IENCES A LAPSE IN CO VERAGE OF THE APPLIC ANT’S PRIOR 16
RESIDENTIAL CONDOMIN IUM UNIT DUE TO AN I NSURER’S WITHDRAWAL FROM TH E 17
MARKET, AN INSURER FROM WHOM THE AP PLICANT SEEKS NEW RE SIDENTIAL 18
CONDOMINIUM UNIT COV ERAGE MAY NOT REFUSE TO ISSUE A POLICY BA SED SOLELY 19
ON THE APPLICANT ’S LAPSE IN COVERAGE ON THE UNIT IF: 20
(1) THE LAPSE IN COVERAG E WAS FOR NOT LONGER THAN 90 DAYS; 21
(2) IF REQUIRED BY THE NEW INSURER , THE APPLICANT PROVID ES AN 22
AFFIDAVIT THAT THE A PPLICANT HAS NOT INC URRED ANY LOSSES DUR ING THE 23
LAPSE IN COVERAGE ; AND 24
(3) THE APPLICANT PROVID ES ANY OTHER DOCUMEN TATION 25
REQUIRED BY THE INSU RER. 26
SECTION 2. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall 27
apply to new residential condominium unit insurance policies issued on or after January 1, 28
2026. 29
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
October 1, 2025. 31