J. MILLARD TAWES, Governor                     773

policy of automobile and motor vehicle bodily injury and property
damage liability insurance or undertake to transact such business
in this State unless such insurer shall participate in the Plan [such
an approved or promulgated plan.] If, after hearing, the Commis-
sioner finds that any activity or practice of any insurer or rating
organization in connection with the operation of the Plan [such plan
or plans] is unfair or unreasonable or otherwise inconsistent with
the provisions of this subsection he may issue a written order specify-
ing in what respects such activity or practice is unfair or unreason-
able or otherwise inconsistent with the provisions of this subsection
and requiring the discontinuance of such activity or practice.

(3) In addition to the requirements set forth in (2) above and
notwithstanding any provisions of the Maryland Automobile Insur-
ance Plan [any assigned risk plan] to the contrary, no such plan
may be approved or promulgated by the Commissioner which is in
conflict with or fails to meet the following requirements:

(3) (i) The Maryland Automobile Insurance Plan must be
[There must be an assigned risk plan] in force at all times and it
shall be the duty of the Commissioner to so require or promulgate
such a plan.

(3) (ii) Any applicant [licensed motor vehicle operator] who
is unable to obtain motor vehicle liability insurance, sufficient to
satisfy the requirements of financial responsibility pursuant to Ar-
ticle 66½ of this Code, is to be eligible for insurance under the Plan.
[plan.] Provided however that the Plan [such plan] may designate
as ineligible any class of motor vehicle operator or the owner of any
motor vehicle usually driven by such operator, who by reason of (1)
gravity or frequency of motor vehicle moving violations, (2) convic-
tion of a felony, or (3) physical or mental impairment.

(3) (iii) Notwithstanding any other rate filing or plan pro-
vision to the contrary, previous cancellations or inability to obtain
insurance may not be used as a basis for rating, provided nothing
in this paragraph shall be construed to require or permit inadequate
rates.

(3) (iv) Insurance issued under the Maryland Automobile In-
surance Plan [The assigned risk insurance] shall be effective begin-
ning at the time the risk is bound by any procuring licensed agent
or broker who is licensed as a resident broker or agent in accordance
with the provisions of Subtitle 11 of this article. Provided however
that, with respect to the time insurance coverage becomes effective,
the Plan [such plan] may provide that the agent or broker send by
registered or certified mail a binder notice to the Maryland Automo-
bile Insurance Plan Office [assigned risk office] and that the insur-
ance take effect at 12:00 Noon 12:01 A.M. of the second day following
mailing of the binder notice.

(3) (v) No eligible assigned risk APPLICANT may be refused
or cancelled by the insurer for underwriting reasons, provided that
nothing in this paragraph shall prevent reclassification of risks, sub-
ject to all of the other standards and requirements of this article,
and provided further that nothing in this paragraph shall prevent
correction of an error in the rate or change in classification of any
risk at any time or recission for fraud or material misrepresentation
in procuring the insurance.