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Marvin Mandel, Governor 297
ATE THE INSURED AUTOMOBILE WAS HELD RESPON-
SIBLE THAT HE MUST OBTAIN COMPARABLE INSUR-
ANCE COVERAGE FROM A PRIVATE INSURER. SUCH A
PERSON SHALL NOT BE ELIGIBLE FOR INSURANCE
AGAIN FROM THE FUND UNLESS HE HAS IN GOOD
FAITH ATTEMPTED TO OBTAIN A POLICY OF AUTOMO-
BILE LIABILITY INSURANCE FROM AT LEAST TWO PRI-
VATE INSURERS AUTHORIZED TO WRITE SUCH A POL-
ICY IN THIS STATE AND HAS BEEN REJECTED OR RE-
FUSED SUCH A POLICY BY TWO SUCH PRIVATE INSUR-
ERS FOR ANY REASON OTHER THAN NON-PAYMENT OF
PREMIUMS.
243C. Premiums.
(a) The Executive Director shall determine the premiums to be
charged on policies issued by the Fund, subject to approval by the
Commissioner of Insurance. The provisions of Section 242 (c) of
this article shall apply to the determination of premiums by the
Executive Director, but nothing in said Section 242(c) or in this
subtitle shall preclude the Executive Director from basing premiums
on the number of points accumulated by an insured or applicant for
insurance under the point system provided for in Part IV of Subtitle
6 of Article 66½ of the Annotated Code of Maryland (1970 Replace-
ment Volume),, or upon the prior claims experience of an insured or
applicant for insurance, or both.
(b) The Motor Vehicle Administrator and the Executive Direc-
tor are authorized to enter into an arrangement whereby the premi-
ums on policies issued by the Fund can be collected by the Adminis-
trator, on behalf of the Fund, at the time of issuance of operator's
licenses or certificates of registration. Any premiums so collected
under such an arrangement shall be paid over to the Treasurer for
the account of the Fund.
(C) THE FUND SHALL NOT PROVIDE DIRECTLY OR
INDIRECTLY FOR THE FINANCING OF PREMIUMS OR AC-
CEPT PREMIUMS ON AN INSTALLMENT BASIS; AND
ANY PREMIUM TO BE FINANCED SHALL BE FINANCED
ONLY BY A PREMIUM FINANCE COMPANY REGISTERED
WITH THE COMMISSIONER IN ACCORDANCE WITH SEC-
TION 486B OF THIS ARTICLE.
243D. Rejection of application for insurance; cancellation of policy.
(a) The Executive Director may reject an application for in-
surance if he finds that the driving record or claims experience of
the applicant is such as would make the applicant an unreasonably
high risk to the Fund and would, despite the liberal purpose of the
Fund, make the issuance of a policy to the applicant an imprudent
act. The Executive Director shall promptly notify an applicant in
writing of a rejection of his application. REJECT AN APPLICA-
TION OF INSURANCE OR CANCEL A POLICY OF INSURANCE
IF HE FINDS THAT THE DRIVING LICENSE OF THE APPLI-
CANT OR POLICYHOLDER IS PRESENTLY SUSPENDED OR
REVOKED. THE EXECUTIVE DIRECTOR SHALL PROMPTLY
NOTIFY THE APPLICANT OR POLICYHOLDER OF HIS
ACTION.
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