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Session Laws, 1966
Volume 678, Page 464   View pdf image (33K)
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464                             LAWS OF MARYLAND                       [CH. 218

of sending such noticeS and relating to the possible rights of
policyholders to obtain other insurance or to be insured with the
assigned risk plan MARYLAND AUTOMOBILE INSURANCE
PLAN in the case of failure to renew insurance or in the event
of cancellation of such insurance.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 240A of Article 48A of the Annotated Code of Mary-
land (1965 Supplement), title "Insurance Code", subtitle "15. Unfair
Trade Practices", be and it is hereby repealed, and that new Section
240A be and it is hereby enacted in lieu thereof, to stand in the place
of the section repealed, and to read as follows:

240A. (a) Whenever an insurer gives notice of its intention TO
CANCEL OR not to renew a policy of motor vehicle liability insur-
ance issued in this State
AS HEREINAFTER REQUIRED IN SUB-
SECTION (D) HEREOF, or before it cancels any such policy of
insurance for a reason other than for non-payment of premium, the
insurer shall notify the insured of his possible right to obtain
REPLACE such insurance through the Maryland Automobile As-
signed Risk INSURANCE Plan.

(b)   The notice shall be in substantially the following form:

"You have been notified that your insurance company does not
desire to carry automobile liability insurance for you any longer.
You should immediately contact an agent or broker for other in-
surance or request insurance through the Maryland assigned risk
plan. AUTOMOBILE INSURANCE PLAN. The assigned risk plan
PLAN affords eligible persons the right to obtain liability insurance.
at a somewhat increased premium. In addition to contacting an insur-
ance broker or agent you may directly contact the office of the
assigned risk Plan for an explanation.

(c)   The notice shall contain the current address and telephone
number of the offices of the assigned risk plan.
PLAN. In the case of

intention not to renew, it shall be sent to the insured not later than

ten day prior to the date of expiration of the policy, and in the

case of cancellation of policy, it shall be sent IT SHALL BE SENT
TO THE INSURED in the same manner and at the same time as the
first written notice of cancellation
OR OF INTENTION NOT TO
RENEW given or required by law, regulation or contract.

(D) THE INSURER SHALL SEE THAT WRITTEN NOTICE
OF INTENTION TO CANCEL FOR A REASON OTHER THAN
NON-PAYMENT OF PREMIUM OR NOTICE OF INTENTION
NOT TO RENEW A POLICY OF MOTOR VEHICLE LIABILITY
INSURANCE ISSUED IN THIS STATE IS SENT TO THE IN-
SURED NOT LESS THAN 30 DAYS PRIOR TO THE DATE OF
THE PROPOSED CANCELLATION OR EXPIRATION OF THE
POLICY, AS THE CASE MAY BE. NOTICE GIVEN THE IN-
SURED BY AN INSURANCE BROKER OR AGENT ON BEHALF
OF THE INSURER SHALL BE DEEMED TO HAVE BEEN
GIVEN BY THE INSURER FOR THE PURPOSES OF THIS SUB-
SECTION.; PROVIDED, HOWEVER, THAT NO SUCH NOTICES
SHALL BE REQUIRED WHERE THE AGENT OR BROKER HAS
REPLACED THE INSURANCE.

 

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Session Laws, 1966
Volume 678, Page 464   View pdf image (33K)   << PREVIOUS  NEXT >>


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