4714

LAWS OF MARYLAND

Ch, 854

243B.

(c)  The Fund shall pay a commission determined by the
board of trustees but not to exceed 12 percent of the total
policy premiums, to the [agent or broker] PRODUCER of a
policyholder LICENSED IN THIS STATE to whom a policy of
insurance is issued [or renewed] by the Fund.

(d)  (1) Any [agent or broker] PRODUCER licensed in
Maryland may, subject to the provisions of this section AND
THE BINDING RULES OF THE FUND, bind the minimum required
coverage for an applicant in the Fund upon application to
the [agent or broker] PRODUCER and payment of the
appropriate premium.

(2)  The board shall adopt and make available to
each [such agent or broker] PRODUCER reasonable rules and
regulations relating to the binding authority of [such
agents and brokers] PRODUCERS, including but not limited to
the amount of premium to be collected, the evidence
necessary to establish the applicant's qualification to be
insured by the Fund, THE TIME WITHIN WHICH THE PRODUCER
SHALL NOTIFY THE FUND OF BINDING, and procedures for
notifying the Fund of the binding of coverage.

(3)  The Fund shall become liable under the
coverage bound from the date of binding by the [agent or
broker] PRODUCER; provided, however, that the Fund, upon
review of the application, may not later than sixty days
after the Coverage is effective, cancel the coverage and
refuse to issue a policy upon a finding that (i) the
applicant is not qualified for insurance by the Fund, (ii)
the appropriate premium has not been paid, or (iii) the Fund
is authorized to reject the application under § 243D;
provided, however, that if the cancellation is due to
nonpayment of the appropriate premium, the Fund shall afford
the applicant _a reasonable opportunity to pay the proper
premium. The Fund shall promptly notify the applicant, the
[agent] PRODUCER and the Motor Vehicle Administration of a
cancellation, and the applicant shall thereafter have the
right of appeal provided for in § 243D.

(e)   If the board finds that any [broker or agent]
PRODUCER has [consistently] engaged in the practice of
binding coverage through the Fund in violation of the rules
and regulations adopted by the board, [and that he knew or
should have known that such binding was in violation of such
rules and regulations,] the board may refuse to accept
further applications from [such agent or broker] THE
PRODUCER, [and] OR may terminate the right of [such agent]
THE PRODUCER to bind coverage, OR BOTH.

243F.