HARRY HUGHES, Governor                                     3429

(D)  ANY INSURER PROVIDING A PRIVATE PASSENGER AUTOMOBILE
INSURANCE POLICY SHALL PROVIDE THE POLICYHOLDER AT THE TIME OF
ISSUANCE OR RENEWAL WITH A STATEMENT DEFINING THE POLICYHOLDER'S
RATE CLASSIFICATIONS. THE STATEMENT SHALL BE SUFFICIENTLY CLEAR
AND SPECIFIC SO THAT A PERSON OF AVERAGE INTELLIGENCE CAN
IDENTIFY THE CLASSIFICATIONS WITHOUT MAKING FURTHER INQUIRY.

(E)  ALL RATES SHALL BE MADE IN ACCORDANCE WITH THE
FOLLOWING SPECIAL PRINCIPLES:

(1)  AN INSURER UNDER AN AUTOMOBILE LIABILITY
INSURANCE POLICY MAY NOT CLASSIFY OR MAINTAIN AN INSURED IN A
CLASSIFICATION ENTAILING A HIGHER PREMIUM BECAUSE OF A SPECIFIC
CLAIM FOR A PERIOD LONGER THAN 3 YEARS, AND AN INSURER MAY NOT
CLASSIFY OR MAINTAIN AN INSURED IN A CLASSIFICATION ENTAILING A
HIGHER PREMIUM BECAUSE OF THE INSURED'S DRIVING RECORD FOR A
PERIOD LONGER THAN 3 YEARS. HOWEVER, THE REMOVAL OF A DISCOUNT
IS NOT A VIOLATION OF THIS SUBSECTION.

(2)  AN INSURER'S AUTOMOBILE AND PHYSICAL DAMAGE
INSURANCE PREMIUMS SHALL REFLECT THE REDUCTION IN CLAIMS, IF ANY,
ATTRIBUTABLE TO THE REQUIREMENT THAT DRIVERS UNDER THE AGE OF 18
MUST ACQUIRE A PROVISIONAL DRIVER'S LICENSE BEFORE ACQUIRING A
DRIVER'S LICENSE.

(3)  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 §
16-117(B)(3) OF THE TRANSPORTATION ARTICLE, FOR PURPOSES OF
RECLASSIFYING AN INSURED IN A CLASSIFICATION ENTAILING A HIGHER
PREMIUM.

(4)  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 § 16-117(B) OF THE TRANSPORTATION
ARTICLE, FOR PURPOSES OF RECLASSIFYING AN INSURED IN A
CLASSIFICATION ENTAILING A HIGHER PREMIUM.

(5)  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.

(6)  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

(II)  WITHIN THE LAST 2 YEARS, HAS COMPLETED
SUCCESSFULLY A COURSE IN ACCIDENT PREVENTION: