Ch. 771                            MARVIN MANDEL, Governor                                 1605

AN ACT to repeal and re-enact, with amendments, Section 540 of Article 48A of
the Annotated Code of Maryland (1972 Replacement Volume and 1972
Supplement), title "Insurance Code," subtitle "Motor Vehicle Casualty
Insurance - Required Primary Coverage," to allow coordination and
non-duplication of economic loss and certain collateral benefits [[when both
types of benefits are provided by the same insurer under certain conditions]]
under certain conditions when the insured is covered by both types of benefits,
[[. ]] , and permitting the named insured to elect or reject coordination and
non-duplication.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 540 of Article 48A of the Annotated Code of
Maryland (1972 Replacement Volume and 1972 Supplement), title '"Insurance
Code," subtitle "Motor Vehicle Casualty Insurance - Required Primary
Coverage," be and it is hereby repealed and re-enacted, with amendments, to read
as follows:

540.

The benefits required under § 539 of this article shall be payable without regard
to the fault or nonfault of the named insured or the recipient in causing or
contributing to the accident, and without regard to any collateral source of
medical, hospital, or wage continuation benefits. [[PROVIDED, HOWEVER.
THAT WHERE THE BENEFITS REQUIRED UNDER § 539 AND THE
SAID COLLATERAL BENEFITS ARE AVAILABLE UNDER COVERAGES
WRITTEN OR UNDERWRITTEN, OR RE-INSURED, DIRECTLY OR
INDIRECTLY, BY THE SAME INSURER. THE INSURER MAY,
SUBJECT TO APPROPRIATE REDUCTIONS IN PREMIUMS FOR ONE
OR BOTH OF SAID COVERAGES APPROVED BY THE INSURANCE
COMMISSIONER, COORDINATE THE POLICIES TO PROVIDE FOR
NON-DUPLICATION OF SUCH BENEFITS.]] WHERE THE INSURED
HAS COVERAGE FOR BOTH THE BENEFITS REQUIRED UNDER
SECTION 539 AND THE COLLATERAL BENEFITS [[ARE AVAILABLE
UNDER COVERAGES WRITTEN OR UNDERWRITTEN, OR
RE-INSURED, DIRECTLY OR INDIRECTLY, BY THE SAME
INSURER]], THE INSURER OR INSURERS MAY COORDINATE THE
POLICIES TO PROVIDE FOR NON-DUPLICATION OF SUCH BENEFITS;
SUBJECT, HOWEVER, TO APPROPRIATE REDUCTIONS_IN PREMIUMS
FOR ONE OR BOTH OF SAID COVERAGES APPROVED BY THE
INSURANCE COMMISSIONER. AND THE NAMED INSURED SHALL
HAVE THE RIGHT TO ELECT OR REJECT THE COORDINATION OF
POLICIES AND NON-DUPLICATION OF BENEFITS, [[AS OFFERED BY
THE INSURER.]] IF THE INSURED ELECTS. TO COORDINATE, HE
SHALL INDICATE IN WRITING WHICH POLICY IS TO BECOME
PRIMARY. An insurer paying benefits pursuant to § 539 of this article shall have
no right of subrogation and no claim against any other person or insurer to recover
any such benefits by reason of the alleged fault of such other person in causing or
contributing to the accident.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take
effect July 1, 1973.

Approved May 24, 1973.