31.08.01.01

.01 General-----Applicability.

A. This chapter applies to commercial monoline fire policies, designated occupancies, and areas of the State that are found by the Insurance Commissioner, after a public hearing, to have an abnormally high incidence of arson, except a one to four family owner-occupied dwelling, for loss due to fire as provided in Insurance Article, Title 19, Subtitle 3, Annotated Code of Maryland.

B. This chapter also applies to any existing insurance policy which is assigned because of the transfer of a major financial interest in the insured property.

C. An applicant is considered to hold a substantial interest or a major financial interest in any property or mortgage when the value held in a property or mortgage is equal to 10 percent of the ownership interest.

D. An antiarson application may be used for commercial monoline fire policies, designated occupancies, and designated areas of the State, based upon a finding by the Insurance Commissioner, after a public hearing, that these commercial monoline fire policies, designated occupancies, and areas of the State have an abnormally high incidence of arson.

E. The Insurance Commissioner may extend the application of these regulations to other than commercial monoline fire policies if the Insurance Commissioner finds, after public hearing, that the properties insured through those other types of policies are especially prone to arson.