.04 Residential Property — Substantially Similar Renewal Offer.

A. Presumption. For purposes of Insurance Article, §3-306(a)(5)(iii), Annotated Code of Maryland, a renewal offer by an authorized insurer for coverage on residential property is presumed to be made on substantially the same terms and conditions as the current coverage unless the renewal offer:

(1) Contains an increase in premium of 20 percent or more;

(2) Contains an increase in the deductible of 100 percent or more; or

(3) Contains or omits any other term or condition that the Commissioner has determined in writing to result in the terms and conditions of the renewal offer not being substantially similar to the terms and conditions of the current coverage.

B. Request for Determination.

(1) Upon written request from the originating insurance producer or a surplus lines broker, the Commissioner shall provide a written determination of whether the terms and conditions of a renewal offer are substantially similar to the current coverage which will be expiring.

(2) The request shall provide, at a minimum, the following information:

(a) A description of the insured risk and the type of coverage provided;

(b) A policy number for the expiring coverage and the date that the coverage expires;

(c) A full explanation of the terms and conditions which differ between the renewal offer and the current coverage;

(d) Copies of the relevant policies or specific policy terms, if needed to fully explain the differences;

(e) The name, address, phone number, and electronic mail address for the individual who can respond to any questions from the Commissioner's staff; and

(f) The name and address of the individual who is to receive the Commissioner's written determination.

C. Documentation. Whenever coverage provided by an authorized insurer on residential property is replaced with coverage provided by an unauthorized insurer, the surplus lines broker or the originating insurance producer shall state in the affidavit required by Insurance Article, §3-307, Annotated Code of Maryland, or on a form approved by the Commissioner and submitted with the affidavit:

(1) Whether the authorized insurer made a renewal offer; and

(2) If the authorized insurer did make a renewal offer, the reason why the terms and conditions of the renewal offer were not substantially similar to the terms and conditions of the coverage previously provided.