J. MILLARD TAWES, Governor                       1041

ASSIGNED RISK PLANS. Persons who but for assigned risk insur-
ance would otherwise have to buy at rates disproportionately high

for the risk to be assumed are to be eligible for assigned risk in-

surance. PROVIDED HOWEVER THAT SUCH PLAN MAY
DESIGNATE AS INELIGIBLE ANY CLASS OF MOTOR VE-
HICLE OPERATOR, OR THE OWNER OF ANY MOTOR
VEHICLE USUALLY DRIVEN BY SUCH OPERATOR, WHO
BY REASON OF (1) GRAVITY OR FREQUENCY OF MOTOR
VEHICLE MOVING VIOLATIONS, (2) CONVICTION OF A
FELONY, OR (3) PHYSICAL OR MENTAL IMPAIRMENT.

(iii) Notwithstanding any other rate filing or plan provision
to the contrary, previous cancellations or inability to obtain insurance
may not be used as a basis for rates RATING, provided nothing in
this paragraph shall be construed to require or permit inadequate

rates. regardless of the amount of premium to be charged upon a

given risk.

(iv) The assigned risk insurance may go into effect immediately,
and shall be effective beginning at the time the risk is bound by any
PROCURING LICENSED AGENT OR broker who is licensed as a
resident broker OR AGENT in accordance with the provisions of
Subtitle 11 of this article. Such binder of a licensed broker OR
PROCURING AGENT shall be effective to immediately bind and put
at the risk the insurer thereafter assigned the insurance under the plan.
PROVIDED HOWEVER THAT, WITH RESPECT TO THE TIME
INSURANCE COVERAGE BECOMES EFFECTIVE, SUCH PLAN
MAY PROVIDE THAT THE AGENT OR BROKER SEND BY
REGISTERED OR CERTIFIED MAIL A BINDER NOTICE TO
THE ASSIGNED RISK OFFICE AND THAT THE INSURANCE
TAKE EFFECT AT 12:00 NOON OF THE SECOND DAY FOL-
LOWING MAILING OF THE BINDER NOTICE.

(v) No ELIGIBLE assigned risk may be refused or cancelled by the
insurer for underwriting reasons, provided that nothing in this para-
graph shall prevent reclassification of risks, subject to all of the other
standards and requirements of this article, and provided further
that nothing in this paragraph shall prevent correction of an error
in the rate of OR CHANGE IN classification of any risk at any time.
OR RECISSION FOR FRAUD OR MATERIAL MISREPRE-
SENTATION IN PROCURING THE INSURANCE.

(vi) An assigned risk insurer shall not be permitted to refuse
or cancel any insurance for nonpayment of premium unless (1) the
net premium is not received from the broker within 10 days after a
statement of net amount due is mailed by the insurer to the broker OR
PROCURING AGENT, but in no event earlier than 45 30 days from
the date when the assigned risk insurance became effective, or (2) the
broker OR PROCURING AGENT orders cancellation for nonpay-
ment', or (3) a lender or assignee, whether by written power of attor-
ney or otherwise, orders cancellation. NOTWITHSTANDING ANY
DEFAULT OF THE INSURED IN PREMIUM PAYMENT TO
THE BROKER OR PROCURING AGENT, OR ANY CANCELLA-
TION OR REPLACEMENT OF THE ASSIGNED RISK INSUR-
ANCE, WHETHER PRIOR TO OR AFTER THE ISSUANCE OF
A POLICY, ANY BROKER OR PROCURING AGENT WHO BINDS
OR PLACES AS ASSIGNED RISK IS LIABLE TO THE AS-
SIGNED RISK INSURER FOR PAYMENT IN FULL OF THE