J. MILLARD TAWES, Governor                     1039

Replacement Volume), title "Insurance Code," subtitle "16. Rates
and Rating Organizations," to amend the existing text of said
subsection to provide as to assigned risks that a plan among
casualty insurers doing business in Maryland for apportionment
of certain motor vehicle insurance risks be in force at all times,
that such assigned risk plans provide insurance for every licensed
motor vehicle operator who is otherwise unable to obtain insur-
ance, to provide for the rating and classification of assigned risk
business, to grant to licensed insurance brokers the power to bind
assigned risks, to define the reasons for which assigned risks may
be cancelled, to provide that assigned risk insurers may refuse
or cancel insurance for nonpayment of premium only under certain
circumstances, to provide that assigned risk insurers return un-
earned premiums to persons other than the insured in financing
situations, to set the minimum rate of commission to be allowed
an insurance broker and to authorize the payment of a service OR

charge by the insured to the procuring agent or broker or ON

assigned risk insurance, and relating generally to assigned risk
plans and motor vehicle insurers.

Section 1. Be it enacted by the General Assembly of Maryland,
That Subsection 243 (n) of Article 48A of the Annotated Code of
Maryland (1964 Replacement Volume), title "Insurance Code," sub-
title "16. Rates and Rating Organizations," be and it is hereby re-
pealed and re-enacted, with amendments, to read as follows:

243.

(n) (1) Agreements may be made among insurers with respect
to the equitable apportionment among them of insurance which may
be afforded motorists [applicants who are in good faith entitled
to but] who are unable to procure such insurance through ordinary
methods and such insurers may agree among themselves on the use
of reasonable rate modifications for such insurance, such agree-
ments and rate modifications to be subject to the approval of the
Commissioner.

(2) Every insurer undertaking to transact in this State the
business of automobile and motor vehicle bodily injury and property
damage liability insurance and every rating organization which files
rates for such insurance shall cooperate in the preparation and
submission of a plan or plans for the equitable apportionment among
insurers of motorists [applicants for insurance who are in good
faith entitled to, but] who are unable to procure such insurance
through ordinary methods [, such insurance]. Such a plan or plans
shall provide: (i) Reasonable rules governing the equitable dis-
tribution of risks by direct insurance, reinsurance or otherwise and
their assignment to insurers; (ii) rates and rate modifications appli-
cable to such risks which shall not be excessive, inadequate or un-
fairly discriminatory; (iii) the limits of liability which the insurer
shall be required to assume; (iv) a method whereby applicants for
insurance, insureds and insurers may have a hearing on grievances
and the right of appeal to the Commissioner. Every such plan shall
be filed in writing with the Commissioner. The Commissioner shall
review the plan as soon as reasonably possible after filing in order
to determine whether it meets the requirements set forth in this
subsection [(i), (ii), (iii), and (iv) above]. Each plan unless sooner