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1989
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HARRY HUGHES, Governor
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Preamble
It is the declared policy of the legislature that
enforcement of this State's compulsory insurance laws is
important to the well-being and safety of the citizens of this
State. The General Assembly finds that the growing number of
uninsured motorists in this State is a serious concern. Further,
this is a problem that deserves the attention of all three
branches of government. The attention that has been given to
this problem has been lacking in the past and has attributed in
some degree to the growth in the number of uninsured motorists.
Without the concerted efforts of each branch of government this
problem cannot be solved. It is the intent of the General
Assembly to address this problem by the passage of this Act; now,
therefore,
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article 48A - Insurance Code
240AA.
[(c-1) In addition to the requirements of subsection (b) of
this section, an insurer shall promptly send to the Motor Vehicle
Administration a copy of any notice to cancel or not renew a
motor vehicle liability insurance policy.]
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 producer of a policyholder licensed in this
State to whom a policy of insurance is issued by the Fund. ALL
COMMISSIONS PAID BY THE FUND SHALL BE FULLY EARNED. A COMMISSION
SHALL BE DEEMED "FULLY EARNED" WHEN A VALID CONTRACT OF INSURANCE
IS MADE WITH THE FUND, AT ISSUANCE OF AN INITIAL POLICY OR
ENDORSEMENT THEREOF, AS AND WHEN THE CORRECT AND CORRECTLY RATED
PREMIUM IS FULLY PAID TO THE FUND, EXCEPT WHEN:
(1) A PROSPECTIVE INSURED FAILS TO QUALIFY UNDER
SUBSECTION (A) OF THIS SECTION, IN WHICH EVENT ANY POLICY ISSUED
SHALL BE VOID AB INITIO, OR
(2) A PROSPECTIVE INSURED'S INITIAL PAYMENT TO THE
FUND, OR A BROKER, AGENT, OR PREMIUM FINANCE COMPANY, IS NOT
HONORED, IN WHICH EVENT ANY POLICY OR ENDORSEMENT ISSUED IN
RELIANCE ON SUCH PAYMENT SHALL BE VOID AB INITIO.
486F.
(f) Whenever an insurance contract is cancelled in
accordance with this section, the insurer shall return whatever
gross unearned premiums are due under the contract, EXCLUSIVE OF
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