Ch. 76 LAWS OF MARYLAND
(1986 Replacement Volume and 1989 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

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, except for a suspension for a first offense of driving with an
alcohol concentration of 0.10 or more under § 16-205.1 of the Transportation Article,
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.

(3) WHEN A PERSON DOES NOT HAVE A VALID LICENSE OR
OTHER PRIVILEGE TO OPERATE AN AUTOMOBILE IN MARYLAND, OR IS
OTHERWISE INELIGIBLE TO BE INSURED BY THE FUND AS SET FORTH IN
THIS SUBTITLE, THE FUND MAY ISSUE THE APPROPRIATE MOTOR
VEHICLE POLICY TOGETHER WITH AN EXCLUDED OPERATOR
ENDORSEMENT AS OTHERWISE PROVIDED FOR IN § 240C-1 OF THIS
ARTICLE.

(b) An applicant whose application for insurance has been rejected or a
policyholder whose policy has been cancelled except for nonpayment of premiums may,
within ten days after receipt of notice of the rejection or cancellation, appeal the
decision of the executive director to a special board composed of two members of the
board of trustees and the Commissioner of Insurance or his designee. The executive
director may not sit on the special board. The special board may affirm, reverse, or
modify the decision of the executive director, upon the record, or may hold a hearing
upon not less than ten days' written notice to the applicant and thereafter affirm,
reverse, or modify the decision of the executive director. If there is a current policy, and
if the policyholder appeals the decision of the executive director to the special board,
his policy shall remain in effect until the special board decides his appeal.

(c) The Fund may, at any time, cancel a policy written by it for nonpayment of
premiums or for suspension, except for a suspension for a first offense of driving with
an alcohol concentration of 0.10 or more under § 16-205.1 of the Transportation
Article, or revocation of the driving license of the policyholder.

(d) The executive director shall, upon rejection of an application for insurance

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