MARVIN MANDEL, Governor

741

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 TWO MEMBERS OF
the board of trustees and the Commissioner of Insurance
OR HIS DESIGNEE. THE EXECUTIVE DIRECTOR MAY NOT SIT ON
THE SPECIAL BOARD. 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 THERE IS A CURRENT POLICY, AND [If] IF the
policyholder 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 Sections
243C(d) [[and]], 243D (e) , and 243M be and they are
hereby added to Article 48A - Insurance Code, of the
Annotated Code of Maryland (1972 Replacement Volume and
1975 Supplement) to read as follows:

243C.

(D)    ANY POLICY HOLDER WHO HAS COMPLETED THREE
CONTINUOUS YEARS IN THE FUND IN WHICH HE HAS NOT HAD ANY
MOVING TRAFFIC VIOLATIONS, NOT MORE THAN ONE POINT, AND
HAS NOT HAD ANY CHARGEABLE TRAFFIC ACCIDENT, IS ENTITLED
TO RENEWAL COVERAGE FROM THE FUND AT RATES REASONABLY
COMPARABLE TO THOSE CHARGED BY STANDARD INSURERS AND
APPROVED BY THE COMMISSIONER BUT SHALL NOT BE ENTITLED TO
ANY SAFE DRIVER CREDIT AS DEFINED IN THE RULES AND RATE
SCHEDULES OF THE MARYLAND AUTOMOBILE INSURANCE FUND FILED
WITH THE COMMISSIONER OF INSURANCE.

243D.

(E)    EXECUTIVE DIRECTOR REFERRALS TO MOTOR VEHICLE
ADMINISTRATOR

(1) IF THE EXECUTIVE DIRECTOR FINDS THAT,
AFTER BEING INSURED BY THE FUND FOR ANY TEN MONTHS DURING
AN 18 MONTH PERIOD, AN INSURED HAD (I) TEN OR MORE POINTS

UNDER THE__POINT SYSTEM ESTABLISHED UNDER PART IV OF

ARTICLE 66 1/2 AND ONE OR MORE CHARGEABLE ACCIDENTS, AS
DEFINED IN THE RULES AND RATES SCHEDULES OF THE MARYLAND
AUTOMOBILE INSURANCE FUND FILED WITH THE COMMISSIONER OF
INSURANCE, WHICH PRODUCE A CLAIM PAYMENT OF $300 OR MORE,

BASED UPON THIRD PARTY LIABILITY, OR (II) THREE OR MORE

CHARGEABLE ACCIDENTS, AS DEFINED IN THE RULES AND RATES

SCHEDULES OF THE MARYLAND AUTOMOBILE INSURANCE FUND FILED
WITH THE COMMISSIONER OF INSURANCE, WITHOUT REGARD TO THE

NUMBER OF POINTS, HE SHALL REFER THE MATTER TO THE MOTOR

VEHICLE ADMINISTRATOR FOR A DETERMINATION. IF,__AFTER A

HEARING, THE ADMINISTRATOR SUSPENDS OR REVOKES THE

INSURED'S DRIVING LICENSE, THE EXECUTIVE DIRECTOR SHALL

CANCEL OR NONRENEW THE POLICY OF INSURANCE AFTER THE

NOTICE REQUIRED BY §240A(C). IF THE POLICY OF INSURANCE