HARRY HUGHES, Governor

3177

(1979 Replacement Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

240C-1.

(a)  (1) In any case where an insurer is authorized under
this article to cancel or nonrenew or increase the premiums on an
automobile liability insurance policy under which more than one
person is insured because of the claim experience or driving
record of one or more but less than all of the persons insured
under the policy, the insurer shall in lieu of cancellation,
nonrenewal, or premium increase offer to continue or renew the
insurance, but to exclude [from] ALL coverage[,] WHEN A MOTOR
VEHICLE IS OPERATED by [name, the person or persons whose claim
experience or driving record would have justified the
cancellation or nonrenewal.] THE SPECIFICALLY NAMED DRIVER, THE
VEHICLE OWNER AND FAMILY MEMBER RESIDING IN THE HOUSEHOLD, AND
ALL OCCUPANTS OR ALL THIRD PARTIES WHO HAVE OTHER APPLICABLE
AUTOMOBILE INSURANCE COVERAGE. EXCLUDED PERSON OR PERSONS WHOSE
CLAIM EXPERIENCE OR DRIVING RECORD WOULD HAVE JUSTIFIED THE
CANCELLATION OR NONRENEWAL. THE POLICY MAY BE ENDORSED TO
SPECIFICALLY EXCLUDE ALL COVERAGE FOR ANY OF THE FOLLOWING WHEN
THE NAMED EXCLUDED DRIVER IS OPERATING THE MOTOR VEHICLE(S)
COVERED UNDER THE POLICY WHETHER OR NOT THAT OPERATION OR USE WAS
WITH THE EXPRESS OR IMPLIED PERMISSION OF A PERSON INSURED UNDER
THE POLICY:

(I) THE EXCLUDED OPERATOR OR USER;

(II) THE VEHICLE OWNER;

(III) FAMILY MEMBERS RESIDING IN THE HOUSEHOLD
OF THE EXCLUDED OPERATOR OR USER OR VEHICLE OWNER; AND

(IV) ANY OTHER PERSON, EXCEPT FOR THE COVERAGE
REQUIRED BY SECTIONS 539 AND 541(C)(2) OF THIS ARTICLE IF SUCH
COVERAGE IS NOT AVAILABLE UNDER ANY OTHER AUTOMOBILE POLICY.

(2) The premiums charged on any such policy excluding
a named driver or drivers UNDER PARAGRAPH (1) OF THIS SUBSECTION
shall not reflect the claims experience or driving record of the
excluded named driver or drivers.

(b)  (1) In any case where an insurer could legally refuse
to issue a policy of automobile liability insurance under which
more than 1 person is insured because of the claim experience or
driving record of 1 or more but less than all of the persons
applying to be insured under the policy, the insurer may issue
the policy but exclude [from] ALL coverage[,] WHEN A MOTOR
VEHICLE IS OPERATED by [name,] the SPECIFICALLY NAMED EXCLUDED