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2518
LAWS OF MARYLAND
Ch. 451
(1979 Replacement Volume and 1983 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article 48A - Insurance Code
540.
(A) The benefits required under § 539 of this article shall
be payable without regard to the fault or nonfault of the named
insured or the recipient in causing or contributing to the
accident, and without regard to any collateral source of medical,
hospital, or wage continuation benefits. Where the insured has
coverage for both the benefits required under § 539 and the
collateral benefits, the insurer or insurers may coordinate the
policies to provide for nonduplication of such benefits; subject,
however, to appropriate reductions in premiums for one or both of
said coverages approved by the Insurance Commissioner, and the
named insured shall have the right to elect or reject the
coordination of policies and nonduplication of benefits. If the
insured elects to coordinate, he shall indicate in writing which
policy is to become primary. An insurer paying benefits [pursuant
to] UNDER § 539 of this article shall have no right of
subrogation and no claim against any other person or insurer to
recover any such benefits by reason of the alleged fault of such
other person in causing or contributing to the accident.
(B)(1) AN INSURER REQUIRED TO PAY BENEFITS UNDER § 539 OF
THIS ARTICLE MAY NOT RAISE THE PREMIUMS OF AN INSURED IF THE
INSURED WAS NOT AT FAULT IN THE ACCIDENT FOR WHICH THE BENEFITS
WERE PAID.
(2) AN INSURER WHO MAY BE REQUIRED TO PAY BENEFITS
UNDER § 539 OF THIS ARTICLE SHALL GIVE WRITTEN NOTICE OF THE
PROVISIONS OF PARAGRAPH (1) OF THIS SUBSECTION ON THE POLICIES OF
ALL THOSE INSUREDS WHO MAY BE AFFECTED BY THOSE PROVISIONS.
(B) UPON THE ISSUANCE OF A POLICY CONTAINING COVERAGE
PROVIDED UNDER § 539 OF THIS ARTICLE, THE INSURER SHALL NOTIFY
THE POLICYHOLDER IN WRITING THAT A SURCHARGE MAY NOT BE IMPOSED
ON THE POLICYHOLDER FOR ANY CLAIM OR PAYMENT MADE PURSUANT TO THE
COVERAGE PROVIDED IN § 539 OF THIS ARTICLE.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1984.
Approved May 15, 1984.
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