§ 11-315. Special rate making principles

   (a) In general. -- All homeowner's insurance rates shall be made in accordance with the principles set forth in this section.

(b) Three-year review period. --

   (1) An insurer under a homeowner's insurance policy may not classify or maintain an insured for a period longer than 3 years in a classification that entails a higher premium because of a specific claim.

   (2) For the purpose of determining whether to classify an insured in a classification that entails a higher premium, an insurer may review only a period not greater than 3 years before:

      (i) if the policy has not yet been issued:

         1. the date of the application; or

         2. the proposed effective date of the policy; or

      (ii) on renewal of a policy, the effective date of the renewal.

   (3) (i) The removal of, reduction of, or refusal to apply a discount is not a violation of this subsection if the claim resulting in the removal of, reduction of, or refusal to apply the discount was filed not more than 5 years before the removal, reduction, or refusal.

      (ii) Subparagraph (i) of this paragraph may not be construed to prevent an insurer from granting a claim-free discount to an insured.

HISTORY: 2009, ch. 378.