Ch. 503

LAWS OF MARYLAND

available to it under subsections (e) and (f) of this section
pending prompt notice and a hearing within 10 WORKING days BEFORE
A MEMBER OF THE BOARD OF TRUSTEES.

(3) The board shall adopt the procedures for notice
and any hearing that is provided under this subsection.

[(h) Any private insurer desiring to assume insurance
coverage of any policyholder insured by the Fund may do so,
provided notice of the proposal is given to the Fund at least 60
days prior to the termination of the policy, with the approval of
the insured, upon receipt of such notice, the Fund shall notify
the insured that he will no longer be eligible for insurance from
the Fund.]

[(i)] (H) At the time a policy of private passenger motor
vehicle insurance is issued to an applicant, the Fund shall
include in the contract a written notice to the applicant that:

(1)  In the event that the applicant chooses to seek
insurance from an insurer other than the Fund, an insurer may not
refuse to underwrite any private passenger motor vehicle
insurance risk solely because the applicant or named insured
previously obtained insurance coverage from the Fund; and

(2)   If the applicant subsequently chooses to seek
insurance from an insurer other than the Fund and that insurer*
refuses to underwrite the applicant solely because the applicant
or named insured previously obtained insurance from the Fund, the
applicant has the right to file a complaint with the insurance
commissioner against that insurer.

(I) WHENEVER A PRODUCER PROPERLY OWES MONEYS TO THE FUND
AND DESPITE DEMAND HAS NOT PAID SUCH MONEYS TO THE FUND, THE FUND
MAY RECOVER SUCH MONEYS THROUGH THE MARYLAND TAX REFUND INTERCEPT
PROGRAM.

(J) EVERY PERSON WHO APPLIES TO BE APPOINTED A PRODUCER,
AND ON OR BEFORE DECEMBER 31 OF EACH YEAR EVERY EXISTING

PRODUCER, WHO HAS NOT FILED A BOND WITH THE INSURANCE

COMMISSIONER AS PROVIDED FOR IN § 168(C)(2) OF THIS ARTICLE SHALL
FILE WITH THE FUND A BOND FOR BENEFIT OF THE FUND FOR THE
SUCCEEDING YEAR, AND THE BALANCE OF THE CURRENT YEAR IN THE CASE
OF AN APPLICANT FOR PRODUCER AUTHORIZATION, IN THE AMOUNT OF
$10,000, EXECUTED BY AN AUTHORIZED SURETY INSURER AND CONDITIONED
SO THAT THE PRODUCER WILL ACCOUNT FOR AND PAY OVER TO THE PERSON
ENTITLED ALL MONEYS BELONGING TO SUCH PERSON WHICH MAY COME INTO
THE PRODUCER'S HANDS IN ACCORDANCE WITH THE PROVISIONS OF THIS

ARTICLE AND THE BINDING RULES OF THE FUND. A PRODUCER'S

AUTHORITY MAY BE TERMINATED ON 10 DAYS' WRITTEN NOTICE IF THE
BOND IS NOT PROVIDED TO THE FUND IN A TIMELY MANNER.

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