BLAIR LEE III, Acting Governor                             25

Annotated Code of Maryland

(1972 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A — Insurance Code

243B.

(a) Subject to the provisions of this subtitle
generally and § 243D hereof in particular, the Fund is
authorized and shall sell, issue, and deliver, upon payment
of the premium set by the Fund, a policy of automobile
liability insurance to any Maryland resident who owns an
automobile validly registered with the Motor Vehicle
Administrator, or has a valid license to operate an
automobile issued by the Motor Vehicle Administrator, and
who DOES NOT OWE TO THE FOND ANY UNPAID INSURANCE PREMIUM
WITH RESPECT TO A PRIOR EXPIRED OR CANCELLED POLICY, AND WHO
either (i) has in good faith attempted to obtain a policy of
automobile liability insurance from at least two private
insurers authorized to write such a policy in this State and
has been rejected or refused such a policy by two such
private insurers for any reason other than nonpayment of
premiums, or (ii) who has had a policy of automobile
liability insurance cancelled or nonrenewed for any reason
other than nonpayment of premiums, by a private insurer
authorized to write such a policy in this State. The
purpose of the Fund is to provide automobile insurance to
those eligible persons who are unable to obtain it in the
private market.

243D.

(a) (1) The executive director may reject an
application of insurance or cancel a policy of insurance if
he finds that the driving license of the applicant or
policyholder is or becomes suspended or revoked. The
executive director shall promptly notify the applicant or
policyholder of his action. If the policy of insurance
covers a spouse or other household member of the family of
the policyholder, the cancellation of the policy shall not
cancel the coverage of such spouse or family member who has
not had his or her driving license suspended or revoked, and
the insurer shall reclassify the rate of risk of such spouse
or family member for premium purposes.

(2) THE EXECUTIVE DIRECTOR MAY REJECT AN
APPLICATION IF THE APPLICANT OWES TO THE FUND ANY UNPAID
INSURANCE PREMIUM WITH RESPECT TO A PRIOR EXPIRED OR
CANCELLED POLICY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1978.