Marvin Mandel, Governor                         229

activity or practice is unfair or unreasonable or otherwise incon-
sistent with the provisions of this [subsection] section and requiring
the discontinuance of such activity or practice.

(4) In addition to the requirements set forth in (3) above and
notwithstanding any provisions of the Maryland automobile insur-
ance plan to the contrary, no such plan may be approved or promul-
gated by the Commissioner which is in conflict with or fails to meet
the following requirements:

(i) The Maryland automobile insurance plan must be in force at
all times and it shall be the duty of the Commissioner to so require
or promulgate such a plan.

(ii) Any applicant who is unable to obtain automobile or motor
vehicle insurance is to be eligible for insurance under the plan. Pro-
vided however that the plan may designate as ineligible any unli-
censed motor vehicle operator.

The plan shall designate as ineligible any private passenger auto-
mobile or motor vehicles not exceeding ¾ ton carrying capacity, to
include, but not limited to, vehicles with a pick-up body, delivery se-
dan, camper, or panel truck used exclusively as a private passenger
vehicle in a damaged condition unless such damage is undergoing res-
toration to completion by a business for the repair of vehicle damage.
Any private passenger automobile exceeding by two (2) years the
model year of the manufacture of such vehicle shall be designated
as ineligible under the plan unless a certificate of inspection as pro-
vided for under Article 66½ of this Code as amended, is submitted
upon request of the insurer within 30 days of the attachment of cov-
erage 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 in-
surer for underwriting reasons, provided that nothing in this para-
graph shall prevent reclassifications 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 rescission for fraud or material misrepresentation in procuring
the insurance.

(vi) An insurer hereunder shall not be permitted to refuse or can-
cel 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