MARVIN MANDEL, Governor                          863

as amended, is submitted upon request of the insurer within 30 days
of the attachment of coverage or upon renewal anniversary of any
coverage.

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

(iv) Insurance issued under the Maryland automobile insurance
plan shall be effective beginning 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 insur-
ance coverage becomes effective, the plan may provide that the agent
or broker send by registered or certified mail a binder notice to the
Maryland automobile insurance plan office and that the insurance
take effect at 12:01 a.m. of the second day following mailing of the
binder notice.

(v) No eligible applicant may be refused or cancelled by the
insurer for underwriting reasons, provided that nothing in this para-
graph shall prevent reclassification of risks, subject to all of the
other standards and requirements of this article, and provided fur-
ther 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.

(vi) An insurer hereunder shall not be permitted to refuse or
cancel any insurance for nonpayment of premium unless (1) the
net premium is not received from the broker within 10 days after a
statement of net amount due is mailed by the insurer to the broker
or procuring agent, but in no event earlier than 30 days from the
date when the insurance became effective, or (2) the broker or pro-
curing agent orders cancellation for nonpayment, or (3) a lender
or assignee, whether by written power of attorney or otherwise,
orders cancellation. Notwithstanding any default of the insured in
premium payment to the broker or procuring agent, or any cancel-
lation or replacement of the insurance, whether prior to or after the
issuance of a policy any broker or procuring agent who binds or
places as such insurance is liable to the insurer for payment in full
of the net premium therefor for the time the insurance is in force.
The plan may provide for a minimum net earned premium of not
exceeding $15.00 per automobile.

(vii) An insurer hereunder shall upon appropriate notice in ac-
cordance with Section 486F, of this article cancel the insurance and
return the unearned premium to the lender, assignee, broker, or other
person who is entitled to the same.

(viii) The broker or procuring agent shall be allowed a commis-
sion on such business of not less than 10 per cent of the gross pre-
mium,, and no insurer may require that the broker remit greater
than the re