Marvin Mandel, Governor                         225

tion," and "Life and Health INSURANCE Guaranty Association
Act," be and they are hereby repealed and re-enacted, with amend-
ments, to read as follows:

59.

(la) A nonresident agent or broker licensed pursuant to Section
[17] 171 may countersign policies and bonds procured through his
agency covering subjects of insurance located or to be performed
in this State, if and to the extent (1) the state in which the non-
resident agent or broker resides or has his principal office has a
reciprocal provision in favor of agents and/or brokers who reside
in Maryland, and (2) the Maryland agent or broker is entitled to
the same commissions as a resident agent with respect to subjects
of insurance located or to be performed in the reciprocal state.

240B.

(b)   If there is a failure to discharge the duty set forth in [para-
graph] subsection (a) of this [sub] section, and thereafter the
policyholder fails to make timely payment of the renewal premium
the insurer must:

(1)   Provide coverage for any claim which would have been cov-
ered under the policy, if it arises within 45 days after the date the
insured discovers or should have discovered that his policy has not
been renewed and,

(2)  Renew the policy upon tender of payment, or comply with
Section 240C, provided the tender is made within 30 days after the
policyholder discovers or should have discovered that his policy has
not been renewed.

(c)  The duty imposed by [paragraph] subsection (a) of this
[sub] section will be deemed discharged if the insurer shows that
its established procedures would have resulted in the placing in the
United States mail of the notice of renewal premium due, provided
there is no showing that in fact the notice was not placed in the mail.

240C.

(b) If an insurer cancels or refuses to renew a policy, such in-
surer must furnish to the applicant a statement of the actual reason
therefor, or that the actual reason will be provided upon request, if:

(1)   The duly authorized premium has been tendered or paid.

(2)  A written request for the actual reason has been made within
thirty days after receipt of the statement of intention to cancel or
not renew, whether or not the applicant subsequently is accepted
under any of the plans set forth in subsection [(f)] (e) of this
section.

242.

(b) This section does not apply to:

(1) Reinsurance, other than joint reinsurance to the extent stated
in subsection (m);