MARVIN MANDEL, Governor                             2407

defining his rate classifications.
BY repealing and re—enacting, with amendments,

Article 48A — Insurance Code

Section 242 (c) (4)

Annotated Code of Maryland

(1972 Replacement Volume and 1973 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 242 (c)(4) of Article 48A -
Insurance Code, of the Annotated Code of Maryland (1972
Replacement Volume and 1973 Supplement) be and it is
hereby repealed and re—enacted, with amendments, to read
as follows:

Article 48A — Insurance Code
242.

(4) Risks may be grouped by classifications for the
establishment of rates and minimum premiums.
Classification rates may be modified to produce rates for
individual risks in accordance with rating plans which
establish standards for measuring variations in hazards
or expense provisions, or both. The standards may
measure any difference among risks that can be
demonstrated objectively to have a direct and substantial
effect upon losses or expenses. However, no rate may be
based partially or entirely on geographic area itself, as
opposed to underlying risk considerations, even though
expressed in geographic terms.

[[THE]] ANY INSURER PROVIDING A PRIVATE PASSENGER
AUTOMOBILE INSURANCE POLICY [[, OR AGENT OR BROKER
WRITING THE INSURANCE,]] SHALL PROVIDE THE POLICYHOLDER
AT THE TIME OF ISSUANCE OR RENEWAL WITH A STATEMENT
DEFINING HIS RATE CLASSIFICATIONS. THE STATEMENT SHALL
BE SUFFICIENTLY CLEAR AND SPECIFIC SO THAT A PERSON OF
AVERAGE INTELLIGENCE CAN IDENTIFY THE CLASSIFICATIONS
WITHOUT MAKING FURTHER INQUIRY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect [[July 1, 1974]] January 1, 1975.

Approved May 31, 1974.

CHAPTER 703