4750

LAWS OF MARYLAND

Ch. 868

Approved June 1, 1982.

CHAPTER 869

(House Bill 1015)

AN ACT concerning

Motor Vehicle Insurance - Premium Discount

FOR the purpose of allowing motor vehicle insurers to grant
discounts in premiums for certain motor vehicle
insurance coverage for insureds over a certain age; and
establishing certain conditions to qualify for the
premium discount.

BY adding to

Article 48A - Insurance Code

Section 242(c)(7)(i) and (8)

Annotated Code of Maryland

(1979 Replacement Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article 48A - Insurance Code

242.

(c) All rates shall be made in accordance with the
following principles:

(7)(i) No insurer under an automobile liability
insurance policy may classify or maintain an insured in a
classification entailing a higher premium because of a
specific claim for a period longer than three years, and no
such insurer may classify or maintain an insured in a
classification entailing a higher premium because of the
insured's driving record for a period longer than three
years. HOWEVER THE REMOVAL OF A DISCOUNT MAY NOT BE
CONSIDERED A VIOLATION OF THIS SUBSECTION.

(8) AN INSURER MAY PROVIDE A REDUCTION IN RATES
BASED ON ACTUARIAL JUSTIFICATION, FOR MOTOR VEHICLE PERSONAL
INJURY AND PROPERTY DAMAGE COVERAGE, TO AN INSURED WHO:

(I) IS AT LEAST 55 YEARS OF AGE; AND