Marvin Mandel, Governor                          1143

(iv) Insurance issued under the Maryland automobile insurance
plan 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. Provided however that, with respect to the time insur-
ance coverage becomes effective, the plan may provide that the agent
or broker send by registered or certified mail a binder notice to the
Maryland automobile insurance plan office and that the insurance
take effect at 12:01 a.m. of the second day following mailing of the
binder notice.

(v) No eligible applicant may be refused or cancelled by the
insurer for underwriting reasons, provided that nothing in this
paragraph shall prevent reclassifications 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 or change in classification of any risk at any time
or recission for fraud or material misrepresentation in procuring
the insurance.

(vi) An insurer hereunder 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 30 days from the
date when the insurance became effective, or (2) the broker or pro-
curing agent orders cancellation for nonpayment, or (3) a lender or
assignee, whether by written power of attorney or otherwise, orders
cancellation. An insurer hereunder shall not cancel any insurance
for nonpayment of premiums where the premium due has been
paid to the broker or licensed procuring agent. Notwithstanding
any default of the insured in a premuim payment to the broker or
procuring agent, or any cancellation or replacement of the insurance,
whether prior to or after the issuance of a policy any broker or procur-
ing agent who binds or places as such insurance is liable to the insurer
for payment in full of the net premium therefor for the time the
insurance is in force. The plan may provide for a minimum net
earned premium of not exceeding $15.00 per automobile.

(vii) An insurer hereunder shall upon appropriate notice in
accordance with Section 486F, of this article cancel the insurance
and return the unearned premium to the lender, assignee, broker, or
other person who is entitled to the same.

(viii) The broker or procuring agent shall be allowed a com-
mission on such business of not less than 10 percent of the gross
premium, and no insurer may require that the broker remit greater
than the resulting net premium after deduction of commissions
under the Maryland automobile insurance plan.

(ix) Any insured under the plan as of January 1, 1970 who com-
pletes a three years assignment period and who, during that period
has no moving traffic violations or traffic accidents for which he
was held responsible, and whose records at the Department of Motor
Vehicles shows none, is entitled to renewal coverage from the assigned
insurer at the basic insurance rating board rates. It is the responsi-
bility of the assigned insurer to notify the insured that they will
provide renewal coverage on this basis. The renewal coverage pro-
vided for in this section will continue on a year to year basis.