402                               Laws of Maryland                      [Ch. 292

CHAPTER 292
(Senate Bill 351)

AN ACT to repeal and re-enact, with amendments, Section 223 (15)
of Article 48A of the Annotated Code of Maryland (1957 Edi-
tion) , title "Insurance", sub-title "Surety, Casualty, Liability and
Compensation Insurance", generally amending the insurance laws
of this State with relation to the so-called assigned risk plan.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 223 (15) of Article 48A of the Annotated Code of
Maryland (1957 Edition), title "Insurance", sub-title "Surety, Cas-
ualty, Liability and Compensation Insurance", be and it is hereby
repealed and re-enacted, with amendments, to read as follows:

223.

15. Assigned Risks

(a) Agreements may be made among insurers with respect to the
equitable apportionment among them of insurance which may be
afforded applicants who are in good faith entitled to but who are
unable to procure such insurance through ordinary methods and
such insurers may agree among themselves on the use of reasonable
rate modifications for such insurance, such agreements and rate
modifications to be subject to the approval of the Commissioner.

(b) Every insurer undertaking to transact in this State the busi-
ness of automobile and motor vehicle bodily injury and property dam-
age liability insurance and every rating organization which files rates
for such insurance shall co-operate in the preparation and sub-
mission of a plan or plans for the equitable apportionment among
insurers of applicants for insurance who are in good faith entitled
to, but who are unable to procure through ordinary methods, such
insurance. Such a plan or plans shall provide: (1) reasonable rules
governing the equitable distribution of risks by direct insurance,
reinsurance or otherwise and their assignment to insurers; (2)
rates and rate modifications applicable to such risks which shall not
be excessive, inadequate or unfairly discriminatory; (3) the limits
of liability which the insurer shall be required to assume; (4) a
method whereby 'applicants for insurance, insureds and insurers
may have a hearing on grievances and the right of appeal to the
Commissioner. Every such plan shall be filed in writing with the
Commissioner. The Commissioner shall review the plan as soon as
reasonably possible after filing in order to determine whether it
meets the requirements set forth in (1), (2), (3) and (4) above.
Each plan unless sooner approved in writing shall be on file for a
waiting period of 30 days before it becomes effective. A plan shall
be deemed approved unless disapproved by the Commissioner within
the waiting period. Subsequent to the waiting period, the Commis-
sioner may disapprove any plan on the ground that it does not meet
the requirements set forth in (1), (2), (3) and (4) above, but only

Explanation: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.

CAPITALS indicate amendments to bill.

Strike out indicates matter stricken out of bill.