288                              Laws of Maryland                        [Ch. 73

(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.

(e) Applicability to availability programs (E) APPLICABIL-
ITY TO AVAILABILITY PROGRAMS.—The provisions of this sec-
tion shall apply to the Maryland automobile insurance plan, the Mary-
land property insurance availability program, and to any other plans
which may be instituted to assure availability of insurance, unless ex-
plicitly excluded.

240C-1. Exclusion of named driver.

(a)    In any case where an insurer is authorized under this
article to cancel or non-renew or increase the premiums on an auto-
mobile liability insurance policy under which more than one person
is insured because of the claim experience or driving record of one
or more but less than all of the persons insured under the policy,
the insurer shall in lieu of cancellation, non-renewal, or premium
increase offer to continue or renew the insurance, but to exclude
from coverage, by name, the person or persons whose claim ex-
perience or driving record would have justified the cancellation or
non-renewal. The premiums charged on any such policy excluding
a named driver or drivers shall not reflect the claims, experience
or driving record of the excluded named driver or drivers.

(b)    With respect to any person excluded from coverage under
this section, the policy may provide that the insurer shall not be
liable for damages, losses, or claims arising out of this operation
or use of the insured motor vehicle, whether or not such operation
or use was with the express or implied permission of a person in-
sured under the policy.

240D. Liability for coverage of insurer violating Sections 240A,
240AA, 240B, and 240C

If an insurer fails to comply with any provision of Sections 240A,
240AA, 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
premium after reasonable demand therefor has been made. Such lia-
bility is in addition to any other penalties applicable pursuant to law.

242.

(c)    Making of rates.—All rates shall be made in accordance
with the following principles:

(1) Due consideration shall be given to (i) past and prospective
loss experience within and outside this State; (ii) conflagration and
catastrophe hazards, if any; (iii) past and prospective expenses both
countrywide and those specially applicable to this State; (iv) under-
writing profit; (v) contingencies; (vi) investment income from un-
earned premium reserve and reserve for losses; (vii) dividends, sav-