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2620
LAWS OF MARYLAND
Ch. 701
CHAPTER 701
(Senate Bill 1017)
AN ACT concerning
Motor Vehicle Liability Insurance - Cancellation
FOR the purpose of repealing a certain applicability restriction
in the procedure for the cancellation of a motor vehicle
liability insurance policy; and generally relating to the
cancellation procedure for a motor vehicle liability
insurance policy providing that certain motor vehicle
liability insurance issued to commercial entities is subject
to certain procedural notice and requirements; and generally
relating to the cancellation and nonrenewal procedure for a
commercial motor vehicle liability insurance policy.
BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 240AA(a) 240A(a)
Annotated Code of Maryland
(1979 Replacement Volume and 1985 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article 48A - Insurance Code
240AA.
(a) Except in accordance with the provisions of this
article, no insurer other than the Maryland Automobile Insurance
Fund shall (i) cancel or fail to renew a policy of motor vehicle
liability insurance issued in this State[, as to any resident of
the household of the named insured,] for any reason other than
nonpayment of premium, or (ii) increase a premium for any
coverage on any such policy unless the increase is part of a
general increase in premium approved by the Commissioner and
does not result from a reclassification of the insured, or (iii)
reduce the coverage under any such policy unless the reduction is
part of a general reduction in coverage approved by the
Commissioner or to satisfy the requirements of §§ 539 through 541
of this article, inclusive.
240A.
(a) Whenever an insurer gives notice of its intention to
cancel or not to renew a policy of insurance other than life,
health, motor vehicle liability insurance ISSUED TO ANY RESIDENT
OF A HOUSEHOLD IN MARYLAND AS SET FORTH IN § 240AA, or surety
insurance as defined in § 69 of this article issued in this State
as hereinafter required in subsection (c) hereof, or before it
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