Marvin Mandel, Governor                         965

(4) if not made pursuant to request, the statement must contain
notice to the applicant that he has a right to request the actual
reason therefor, provided he makes the request within thirty days
after receipt of the statement of refusal to issue or intention to can-
cel or not renew and that any such statement will be retained as a
public record in the Department DIVISION;

(5) the reason given must be sufficiently clear and specific so that
an applicant of reasonable intelligence will be able to identify the
basis for the insurer's decision without making further inquiry.
Generalized terms such as personal habits, living conditions, poor
morals, violation or accident record, are not adequate to meet this
requirement.

(f) (E) Applicability to Availability Programs.

The provisions of this section shall apply to the Maryland Auto-
mobile Insurance Plan, the Maryland Property Insurance Availability
Program, and to any other plans which may be instituted to assure
availability of insurance, unless explicitly excluded.

240D.

If an insurer fails to comply with any provision of Sections 240A,
240B, or 240C, such insurer shall be liable to the applicant for the
coverage which was requested, or which would have become effective
except for the failure to comply with this section, unless the person
seeking coverage no longer wishes the coverage, has obtained other
substantially equivalent coverage, or fails to tender or pay the pre-
mium after reasonable demand therefor has been made. Such liability
is in addition to any other penalties applicable pursuant to law.

[240D.] 240E.

(a)  No person shall make, issue or charge, or cause to be made,
issued or charged to any individual, any type of credit life or dis-
ability insurance premium without the express written consent of
that individual.

(b)  The computation of a service charge in a retail credit account
shall not be based in any part upon the premiums due under a policy
of credit life or disability insurance. For the purposes of this sub-
section, the terms "service charge" and "retail credit account" shall
have the same definition given those terms in Sections 153A (e) and
153A (h), respectively, of Article 83 of this Code (1957 Edition, as
amended).

(c)   For the purposes of this section, "credit life or disability in-
surance" means any type of insurance which will pay all or part of
an individual's debt upon his death or disability.

[240E.] 240F.

No policy or contract of motor vehicle liability insurance shall be
cancelled or nonrenewed exclusively for the reason of age of the
holder of the policy or contract.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1971.

Approved May 17, 1971.