§ 11-317. Statement of rate classifications

   (a) Definitions. -- In this section, "increase in a policy premium" includes an increase in premium due to:

   (1) a surcharge;

   (2) retiering or other reclassification of an insured; or

   (3) removal or reduction of a discount.

(b) In general. -- Each insurer that provides a private passenger automobile insurance policy shall provide to the policyholder at the time of issuance or renewal of the policy a statement that:

   (1) defines the policyholder's rate classifications;

   (2) if the insurer is an authorized insurer includes a summary, in a form approved by the Commissioner, of the insurer's approved surcharge plan or driver record point plan for that policy; and

   (3) includes a section that provides a general description of the factors, including credit information if applicable, that may cause or contribute to an increase in a policy premium.

(c) Effect of statement. -- The statement must be sufficiently clear and specific so that an individual of average intelligence can identify the classifications without making further inquiry.

(d) Availability of statement. -- An insurer that markets private passenger automobile insurance through insurance producers shall make available to its producers a copy of the statement required under this section.

HISTORY: An. Code 1957, art. 48A, § 244D; 1997, ch. 35, § 2; 2002, ch. 553.