Marvin Mandel, Governor                         283

and re-enacted, with amendments; that new Section 240AA be and
it is hereby added to said article, title and subtitle, to follow im-
mediately after Section 240A thereof; that Section 240B of said
article, title and subtitle be and it is hereby repealed and re-
enacted, with amendments; that Section 240C of said article, title
and subtitle be and it is hereby repealed and re-enacted, with amend-
ments; that new Section 240C-1 be and it is hereby added to said
article, title and subtitle, to follow immediately after Section 240C
thereof; that Section 240D of said article, title and subtitle be and
it is hereby repealed and re-enacted, with amendments; that Section
242(c) of said article and title, subtitle "16. Rates and Rating
Organizations," be and it is hereby repealed and re-enacted, with
amendments; that new Section 242(c-1) be and it is hereby added
to said article, title and subtitle, to follow immediately after Section
242(c) thereof; that Section 243 of said article, title and subtitle
is hereby repealed and that new Sections 243 to 243L, inclusive,
be and they are hereby added in lieu thereof under new subtitle
"16A. Maryland Automobile Insurance Fund," to follow immediately
after Section 242 of said article and title; and that new Sections
538 to 547 546, inclusive, be and they are hereby added to said article
and title under new subtitle "Motor Vehicle Casualty Insurance—
Required Primary Coverage," to follow immediately after Section 537
of said article and title, and all to read as follows:

234B. Unfair or discriminatory treatment of agent or broker.

(a) No insurer may cancel a written agreement with a broker
or agent with respect to motor vehicle liability insurance or refuse to
accept motor vehicle liability insurance business from such broker
or agent unless it complies with the provisions of this section.

(b) If an insurer intends to cancel such a written agreement

with a broker or agent or to refuse to accept such further business

from such broker or agent, it shall give at least sixty days written

notice of its intention to the broker or agent and to each person

insured by the insurer through the broker or agent. The notice to

the insured shall state (i) the intention of the insurer to cancel its

agreement with the broker or agent, or not to accept further busi-

ness from such broker or agent, (ii) the right of the insured to re-

place his insurance, upon its expiration, through the broker or agent
with another company, and (iii) the right to have the insurance
renewed directly by the insurer or by the insurer through another

broker or agent.

(c) If an insurer who cancels such a written agreement with a

broker or agent or refuses to accept such further business from a
broker or agent is not advised in writing that policies it has written

through such agent or broker have been replaced by other insurance,

the insurer shall, at least forty-five days prior to the expiration of
each such poliey, offer to renew the same directly or through another

broker or agent; and unless the insurer is thereafter advised by the

shall, upon tender of the appropriate premium, renew the poliey for

at least one year; provided, however, that nothing contained herein
shall preclude the insurer from allowing the insured to pay the pre-

miums on a periodic basis or from cancelling the policy for nonpay-
ment of premiums. IF AN INSURER INTENDS TO CANCEL A
WRITTEN AGREEMENT WITH AN AGENT OR BROKER, OR