NAMIC Comments on MIA Draft Regulation on Deductibles
The National Association of Mutual Insurance Companies submitted written testimony today to the Maryland Insurance Administration in reference to draft regulation 31.08.13 - Application of a Percentage Deductible in the Case of a Hurricane or Other Storm. The regulation aims to provide a framework for the application of hurricane deductibles in Maryland.
In addition to emphasizing the importance of peril percentage deductibles to a thriving homeowners' market, NAMIC asked the MIA to emphasize the threshold of application of the regulation to deductibles over 5 percent. Additionally, NAMIC suggested changes to the regulation that would enable the deductible application when a hurricane warning is issued in any part of the state.
"NAMIC has serious concerns about the draft regulation. It provides overly onerous restrictions to the homeowners' market that we believe was not the intent of the law," said Erin Collins, NAMIC state affairs manager. "We're looking forward to the opportunity to speak with the MIA further about peril percentage deductibles and how they are part of a healthy and thriving market in Maryland."
Contact: Lisa Floreancig
Public Affairs Director - State & Policy Affairs