292                              Laws of Maryland                        [Ch. 73

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 inspec-
tion as provided for under Article 66½ of this Code as amended, is
submitted upon request of the insurer within 30 days of the attach-
ment of coverage 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
paragraph 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 reclassification of risks, subject to all of the other
standards and requirements of this article, and provided further 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 recision
for fraud or material misrepresentation in procuring the insurance.

(vi) An insurer hereunder shall not be permitted to refuse or
cancel 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
or procuring agent, but in no event earlier than 30 days from the
date when the insurance became effective, or (2) the broker or pro-
curing agent orders cancellation for nonpayment, or (3) a lender or
assignee, whether by written power of attorney or otherwise, orders
cancellation. An insurer hereunder shall not cancel any insurance
for nonpayment of premiums where the premium due has been paid
to the broker or licensed procuring agent. Notwithstanding any de-
fault of the insured in a premium payment to the broker or procuring
agent, or any cancellation or replacement of the insurance, whether
prior to or after the issuance of a policy any broker or procuring
agent who binds or places as such insurance is liable to the insurer
for payment in full of the net premium therefor the time the
insurance is in force. The plan may provide for a minimum net earned
premium of not exceeding $15.00 per automobile.

(vii) An insurer hereunder shall upon appropriate notice in ac-
cordance with Section 486F, of this article cancel the insurance and
return the unearned premium to the lender, assignee, broker, or other
person who is entitled to the same.

(viii) The broker or procuring agent shall be allowed a com-
mission on such business of not less than 10 percent of the gross
premium, and no insurer may require that the broker remit greater
than the resulting net premium after deduction of commissions under
the Maryland automobile insurance plan.