HARRY HUGHES, Governor

2771

(C)  THIS SUBTITLE MAY NOT 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 AS PROVIDED IN SUBPARAGRAPH (B)(2)(I).

(D) (1) THIS SECTION MAY NOT PROHIBIT A SURPLUS LINE
BROKER FROM RENEWING A RISK PLACED WITH A SURPLUS LINE
INSURER IF THE RISK WAS INITIALLY WRITTEN ON A SURPLUS LINE
BASIS AT A TIME WHEN THERE WERE LESS THAN THREE INSURERS
WHICH WERE AUTHORIZED TO TRANSACT AND WERE 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 IN THIS STATE.

(2) HOWEVER, AFTER JULY 1, 1980, A RISK
INITIALLY ELIGIBLE FOR SURPLUS LINE INSURANCE MAY BE RENEWED
ON THAT BASIS NOTWITHSTANDING THE FACT THAT THREE OR MORE
INSURERS AUTHORIZED IN THIS STATE TO TRANSACT BUSINESS ARE
WRITING ON A BROAD BASIS THE PARTICULAR KIND AND CLASS OF
INSURANCE REQUIRED BY THE INSURED ON THE DATE OF RENEWAL, IF
THE SURPLUS LINE INSURER OR BROKER SHALL GIVE APPROPRIATE
NOTICE TO THE INSURED ANNUALLY OF THE AVAILABILITY OF
COMPARABLE TYPES OF INSURANCE AVAILABLE FROM THREE OR MORE
INSURERS SUFFICIENTLY IN ADVANCE OF THE RENEWAL DATE TO
PERMIT THE INSURED TO DETERMINE WHETHER IT IS DESIRABLE TO
RENEW THE POLICY WITH THE SURPLUS LINE INSURER.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.

Approved May 27, 1980.

CHAPTER 791

(House Bill 1579)

AN ACT concerning

Industrial Buildings for Counties and
Municipalities - Definitions

FOR the purpose of providing that the definition of certain
industrialized buildings includes certain buildings and
structures definitions of industrial buildings and
industrial concerns include buildings and structures
for any person that may be financed by certain
tax-exempt bonds.

BY repealing and reenacting, with amendments,

Article 41- Governor - Executive and

Administrative Departments
Section 266A(a) and (h)