HARRY HUGHES, Governor

1567

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.

(b)  The policy issued by the Fund shall contain the
minimum coverages required by §§ 539 through 542, inclusive,
of this article, and may contain such other provisions as
may be determined by the executive director and approved by
the board of trustees of the Fund and the Commissioner of
Insurance.

(c)  The Fund shall pay a commission determined by the
board of trustees but not to exceed 12 percent of the total
policy premiums, to the agent or broker of a policyholder to
whom a policy of insurance is issued or renewed by the Fund.

(d) (1) Any agent or broker licensed in Maryland may,
subject to the provisions of this section, bind the minimum
required coverage for an applicant in the Fund upon
application to the agent or broker and payment of the
appropriate premium.

(2)  The board shall adopt and make available to
each such agent or broker reasonable rules and regulations
relating to the binding authority of such agents and
brokers, including but not limited to the amount of premium
to be collected, the evidence necessary to establish the
applicant's qualification to be insured by the Fund, and
procedures for notifying the Fund of the binding of
coverage.

(3)  The Fund shall become liable under the
coverage bound from the date of binding by the agent or
broker; provided, however, that the Fund, upon review of the
application, may not later than sixty days after the
coverage is effective, cancel the coverage and refuse to
issue a policy upon a finding that (i) the applicant is not
qualified for insurance by the Fund, (ii) the appropriate
premium has not been paid, or (iii) the Fund is authorized
to reject the application under § 243D; provided, however,
that if the cancellation is due to nonpayment of the
appropriate premium, the Fund shall afford the applicant a
reasonable opportunity to pay the proper premium. The Fund
shall promptly notify the applicant, the agent and the Motor
Vehicle Administration of a cancellation, and the applicant
shall thereafter have the right of appeal provided for in §
243D.

(e)  If the board finds that any broker or agent has
consistently engaged in the practice of binding coverage
through the Fund in violation of the rules and regulations