A. Factors in Mitigation. With respect to cancellation of, or refusal to renew, coverage based on claims history, an insurer may not consider factors in mitigation of a proposed cancellation of, or refusal to renew, coverage as provided by Insurance Article, §27-501(n)(1), Annotated Code of Maryland, unless the:
(1) Insurer applies the factors uniformly within a given classification to each proposed cancellation of, or refusal to renew, coverage for all insureds; and
(2) Factors considered are included in the insurer's underwriting guidelines or rating plan.
B. Disclosure of Practice of Considering Claims History. An insurer that is required by Insurance Article, §27-501(n)(2), Annotated Code of Maryland, to disclose the practice of considering claims history for purposes of canceling, or refusing to renew, coverage shall provide notice to the insured at the issuance of the policy and at each renewal by using the following language, or substantially similar language, in a least 12-point type: (Name of Insurer) will consider your claims history for purposes of determining whether to cancel or refuse to renew your policy.
C. Providing Disclosure Notice at Inception of Policy. An insurer shall provide the disclosure notice required by §B of this regulation to an insured at the inception of a policy by:
(1) Including the disclosure notice in a conspicuous location on a binder, the policy, or another form; and
(2) Mailing or delivering the binder, policy, or other form to the insured.
D. Providing Disclosure Notice at Renewal. An insurer shall provide the disclosure notice required by §B of this regulation to an insured at each renewal of a policy by including the disclosure notice in a conspicuous location on the notice of renewal premium required by Insurance Article, §§27-607 and 27-610, Annotated Code of Maryland.
E. The disclosure required by §§B and D of this regulation may be met by using the form under COMAR 31.08.18.02.