1422                            LAWS OF MARYLAND                     [CH. 610

CHAPTER 610
(Senate Bill 553)

AN ACT to add new Section 482B to REPEAL AND RE-ENACT
SECTION 240B OF Article 48A of the Annotated Code of Mary-
land (1968 Supplement), title "Insurance Code," subtitle "Casualty
Insurance," to follow immediately after Section 482A thereof, to
provide for uniform rates for policies of casualty insurance of like
coverage. "UNFAIR TRADE PRACTICES," TO REQUIRE IN-
SURANCE COMPANIES TO GIVE THE REASONS FOR THE
CANCELLATION OF AN INSURER'S FIRE INSURANCE
POLICY.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 482B be and it is hereby added to SECTION 240B
OF Article 48A of the Annotated Code of Maryland (1968 Supple-
ment), title "Insurance Code," subtitle "Casualty Insurance," to fol-
low immediately after Section 482A thereof, and "UNFAIR TRADE
PRACTICES," BE AND IT IS HEREBY REPEALED AND RE-
ENACTED to read as follows:

482B.

Every insurer doing business in this State shall charge uniform

rates approved by the State Insurance Commissioner, for policies of
casualty insurance, including fire insurance, of like coverage.

240B.

IF A POLICY OR CONTRACT OF MOTOR VEHICLE LIABIL-
ITY INSURANCE OR FIRE INSURANCE WHICH HAS BEEN
IN EFFECT FOR AT LEAST SIXTY DAYS, IS CANCELLED OR
NONRENEWED, FOR A REASON OTHER THAN NONPAY-
MENT OF PREMIUM, THE INSURANCE COMPANY OR ITS
DULY AUTHORIZED AGENT SHALL NOTIFY THE INSURED
IN THE CANCELLATION NOTICE THAT HE HAS A RIGHT
TO REQUEST THE REASON FOR CANCELLATION. IF THE
REQUEST FOR A REASON IS MADE WITHIN THIRTY (30)
DAYS PRIOR TO THE DATE OF THE PROPOSED CANCEL-
LATION OR EXPIRATION OF THE POLICY, AS THE CASE
MAY BE, THE COMPANY SHALL GIVE THE ACTUAL REA-
SON OR REASONS RELIED UPON BY IT FOR THE CANCEL-
LATION OR NONRENEWAL AND SHALL FILE A COPY OF
THIS STATEMENT OF THE REASON OR REASONS WITH
THE INSURANCE COMMISSIONER. THE EXPLANATION
SHALL BE PRIVILEGED AND SHALL NOT CONSTITUTE
GROUNDS FOR ANY ACTION AGAINST THE INSURER OR
REPRESENTATIVES OR ANY FIRM, PERSON, OR CORPORA-
TION WHO OR WHICH IN GOOD FAITH FURNISHES TO THE
INSURER THE INFORMATION UPON WHICH THE REASONS
ARE BASED. THE PROVISIONS OF THIS SECTION DO NOT
APPLY TO POLICIES OF LIABILITY INSURANCE ISSUED
UNDER THE MARYLAND AUTOMOBILE INSURANCE PLAN.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1969.

Approved May 14, 1969.