Marvin Mandel, Governor                         423

is unfair or unreasonable or otherwise inconsistent with the provi-
sions of this subsection and requiring the discontinuance of such
activity or practice.

(4) In addition to the requirements set forth in (3) above and
notwithstanding any provisions of the Maryland automobile insur-
ance plan to the contrary, no such plan may be approved or promul-
gated by the Commissioner which is in conflict with or fails to meet
the following requirements:

(i) The Maryland automobile insurance plan must be in force
at all times and it shall be the duty of the Commissioner to so require
or promulgate such a plan.

(ii) Any applicant who is unable to obtain automobile or motor
vehicle insurance is to be eligible for insurance under the plan.
Provided however that the plan may designate as ineligible any un-
licensed motor vehicle operator.

The plan shall designate as ineligible any private passenger auto-
mobile in a damaged condition unless such damage is undergoing
restoration to completion by a business for the repair of automobile
damage. Any private passenger automobile exceeding by two (2)
years the model year of the manufacture of such automobile shall be
designated as ineligible under the plan unless a certificate of inspec-
tion as provided for under Article 66½ of this Code as amended, is
submitted upon request of the insurer within 30 days of the attach-
ment of coverage or upon renewal anniversary of any coverage.

(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 rating, provided nothing in this
paragraph shall be construed to require or permit inadequate rates.

(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 in-
surance 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 in-
surance 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 fur-
ther 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