Md. Code Regs. 31.10.25.05

Current through Register Vol. 51, No. 22, November 1, 2024

Section 31.10.25.05 - Limitations and Exclusions

A. Crime.

(1) An individual contract may not include a limitation or exclusion for loss to which a contributing cause was the covered individual's commission of or attempt to commit a crime.

(2) An individual contract may not include a limitation or exclusion for loss for which a contributing cause was the commission of or the attempt to commit a crime by an individual other than the covered individual.

B. Illegal Occupation. An individual contract may not include a limitation or exclusion for loss to which a contributing cause was the covered individual's being engaged in an illegal occupation.

C. Intoxicants or Narcotics or Use of Intoxicants or Narcotics.

(1) An individual contract may not include a limitation or exclusion for loss sustained or contracted in consequence of the covered individual's being intoxicated or under the influence of any drug.

(2) An individual contract may not include a limitation or exclusion for loss due to:

(a) The use of alcohol;

(b) The use of drugs or narcotics; or

(c) Alcoholism or drug addiction.

D. Preexisting Condition. If an individual contract contains a preexisting condition limitation or exclusion, the limitation or exclusion may not apply to a condition which the applicant revealed in the application for the contract, unless the condition is excluded by means of a signed waiver rider attached to the contract.

Md. Code Regs. 31.10.25.05

Regulation .05A amended as an emergency provision effective May 9, 2003 (30:11 Md. R. 732); amended permanently effective October 27, 2003 (30:21 Md. R. 1531)