Ch. 125                             MARVIN MANDEL, Governor                                  195

CHAPTER 124
(House Bill 54)

AN ACT to repeal and re-enact, with amendments, Section 544 of Article 48A of
the Annotated Code of Maryland (1972 Replacement Volume and 1972
Supplement), title "Insurance Code," subtitle "35. Motor Vehicle Casualty
Insurance - Required Primary Coverage," to provide for a penalty charge of
simple interest on overdue payments of certain benefits.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 544 of Article 48A of the Annotated Code of
Maryland (1972 Replacement Volume and 1972 Supplement), title "Insurance
Code," subtitle "35. Motor Vehicle Casualty Insurance - Required Primary
Coverage," be and it is hereby repealed and re-enacted, with amendments, to read
as follows:

544.

(A)   All payments of benefits prescribed under Section 539 shall be made
periodically as the claims therefor arise and within 30 days after satisfactory proof
thereof is received by the insurer subject to the following limitations:

[(a)] (1) The coverages described in Section 539 may prescribe a period of not
less than six months after the date of accident within which the original proof of
loss with respect to a claim for benefits must be presented to the insurer.

[(b)] (2) The coverages described in Section 539 may provide that in any
instance where a lapse occurs in the period of total disability or in the medical
treatment of an injured person who has received benefits under such coverage or
coverages and such person subsequently claims additional benefits based upon an
alleged recurrence of the injury for which the original claim for benefits was made,
the insurer may require reasonable medical proof of such alleged recurrence;
provided, that in no event, shall the aggregate benefits payable to any person
exceed the maximum limits prescribed in the policy.

(B)     PAYMENTS OF BENEFITS WHICH ARE NOT MADE IN
ACCORDANCE WITH THIS SECTION AND ARE OVERDUE SHALL
BEAR SIMPLE INTEREST AT THE RATE OF ONE AND ONE-HALF
PERCENT (1 1/2%) PER MONTH.

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

Approved April 26, 1973.

CHAPTER 125
(House Bill 74)

AN ACT to add new Section 120D to Article 89B of the Annotated Code of
Maryland (1969 Replacement Volume), title "State Roads," subtitle "Bonds,
Notes or Other Evidence of Indebtedness," subheading "Bridge, Tunnel and
Motorway Revenue Bonds," to follow immediately after Section 120C thereof,
providing that the State Roads Commission shall erect signs warning
approaching motorists of any delay in the flow of traffic through the Baltimore