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MARVIN MANDEL, Governor
1161
BY repealing and re—enacting, with amendments,
Article 48A — Insurance Code
Section 243D (a) and (b)
Annotated Code of Maryland
(1972 Replacement Volume and 1974 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 243D(a) of Article 48A - Insurance
Code, of the Annotated Code of Maryland (1972 Replacement
Volume and 1974 Supplement) be and it is hereby repealed
and re—enacted, with amendments, to read as follows:
Article 48A — Insurance Code
243D.
(a) The executive director may reject an
application of insurance or cancel a policy of insurance
if he finds that the driving license of the applicant or
policyholder is [presently] OR BECOMES suspended or
revoked. The executive director shall promptly notify
the applicant or policyholder of his action. IF THE
POLICY OF INSURANCE COVERS A SPOUSE OR OTHER HOUSEHOLD
MEMBER OF THE FAMILY OF THE POLICYHOLDER, THE
CANCELLATION OF THE POLICY SHALL NOT CANCEL THE COVERAGE
OF SUCH SPOUSE OR FAMILY MEMBER WHO HAS NOT HAD HIS OR
HER DRIVING LICENSE SUSPENDED OR REVOKED. AND THE
INSURER SHALL RECLASSIFY THE RATE OF RISK OF SUCH SPOUSE
OR FAMILY MEMBER FOR PREMIUM PURPOSES
(b)______An applicant whose application for insurance
has been rejected OR A POLICYHOLDER WHOSE POLICY HAS BEEN
CANCELLED EXCEPT FOR NONPAYMENT OF PREMIUMS may, within
ten days after receipt of notice of the rejection OR
CANCELLATION, appeal the decision of the executive
director to a special board composed of the board of
trustees and the Commissioner of Insurance. The special
board may affirm, reverse, or modify the decision of the
executive director, upon the record, or may hold a
hearing upon not less than ten days' written notice to
the applicant and thereafter affirm, reverse, or modify
the decision of the executive director. IF THE POLICY
HOLDER APPEALS THE DECISION OF THE EXECUTIVE DIRECTOR TO
THE SPECIAL BOARD, HIS POLICY SHALL REMAIN IN EFFECT
UNTIL THE SPECIAL BOARD DECIDES HIS APPEAL.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1975.
Approved April 8, 1975.
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