2770                                     LAWS OF MARYLAND                                   Ch. 790

such surplus amount or policy, hereinafter designated as

surplus line,

(A)  "SURPLUS LINE" INSURANCE MEANS THE FULL AMOUNT OR
POLICY OF INSURANCE REQUIRED TO PROTECT THE INTEREST OF THE
INSURED WHICH CANNOT BE OBTAINED (1) FROM INSURERS
AUTHORIZED TO DO BUSINESS IN THIS STATE, OR (2) FROM THREE
OR MORE INSURERS WHO ARE AUTHORIZED IN THIS STATE AND
ACTUALLY WRITING ON A BROAD BASIS THE PARTICULAR KIND AND
CLASS OF INSURANCE TO PROVIDE COVERAGE AGAINST LIABILITY
DESCRIBED IN § 551(C)(1), (2), AND (3) OF THIS ARTICLE.

(B)  SURPLUS LINE may be procured from unauthorized
insurers subject to the following conditions:

(a) (1) If procured through a broker, the insurance
must be procured through a licensed surplus line broker
licensed in Maryland;.

(b) (2) The insurance must be eligible as surplus line
in accordance with the provisions of this subsection.
PARAGRAPH;

(1) (I) A diligent search and effort must be
made among the insurers who are authorized to transact and
are actually writing the particular kind and class of
insurance in this State, and EXCEPT FOR INSURANCE DESCRIBED
IN PARAGRAPH (A)(2) OF THIS SECTION the amount of insurance
eligible for an unauthorized insurer is only the excess over
the amount procurable from authorized insurers.

(2) The insurance must (II) EXCEPT FOR

SUBSECTION (C), THE INSURANCE MAY not be procured for the
sole purpose of securing advantages either as to:

(i) 1. A lower premium rate than would be
accepted by an authorized insurer;, or

(ii) 2. Terms of the insurance contract;

(iii) Provided nothing in this subtitle
shall be construed to prohibit a more favorable premium rate
or more favorable terms of the insurance contract in an
unauthorized insurer, if the risk is eligible as surplus
line in accordance with the provisions of subsection (b)(1)
above.

(c) (3) There must be compliance with the other
applicable provisions of this subtitle.

(D) PROVIDED THAT, NOTWITHSTANDING SUBSECTION (A),
(B), AND (C) OF THIS SECTION, ALL MEDICAL PROFESSIONAL
LIABILITY INSURANCE MAY, AT THE OPTION OF THE INSURED, BE
PROCURED FROM UNAUTHORIZED DOMESTIC OR UNAUTHORIZED FOREIGN
INSURERS, EVEN THOUGH THAT INSURANCE COULD BE OBTAINED FROM
ONE OR MORE AUTHORIZED INSURERS.