4798

LAWS OF MARYLAND

Ch. 887

Article 48A - Insurance Code

Section 242(c)(7)

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.

(ii) An insurer's automobile and physical
damage insurance premiums shall reflect the reduction in
claims, if any, which is attributable to the requirement
that drivers under the age of 18 must acquire a provisional
driver's license before acquiring a driver's license.

(iii) An insurer under an automobile
insurance policy may not consider accident reports and
abstracts of court convictions pertaining to driving an
emergency vehicle that are on record with the Motor Vehicle
Administration, as provided in Section 16-117(b)(3) of the
Transportation Article, for purposes of reclassifying an
insured in a classification entailing a higher premium.

(iv) An insurer under an automobile
insurance policy may not consider a probation before
judgment disposition of a motor vehicle law offense on
record with the Motor Vehicle Administration, as provided in
Section 16-117(b) of the Transportation Article, for
purposes of reclassifying an insured in a classification
entailing a higher premium.

(V) IF THE INSURED NOTIFIES THE INSURER
UNDER AN AUTOMOBILE INSURANCE POLICY OF A CHANGE IN
CIRCUMSTANCES THAT JUSTIFIES RECLASSIFYING THE INSURED IN A
DIFFERENT CLASSIFICATION OR TERRITORY, THE INSURER SHALL
ADJUST THE PREMIUM CHARGED THE INSURED FROM THE DATE OF
NOTIFICATION OR SOONER IF JUSTIFIED.