WILLIAM DONALD SCHAEFER, Governor                    Ch. 455

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code
Section 240A and 240AA(b)
Annotated Code of Maryland
(1986 Replacement Volume)

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

Article 48A - Insurance Code

240A.

(a) (1) 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 OF THIS
ARTICLE, or surety insurance as defined in § 69 of this article
issued in this State as [hereinafter] required in [subsection (c)
hereof] PARAGRAPH (3) OF THIS SUBSECTION, or before it cancels
any such policy of insurance for a reason other than for
nonpayment of premium, the insurer shall notify the insured of
his possible right to replace such insurance through the Maryland
property insurance availability plan, or any other plan, if there
be such, and he may be eligible therefor.

[(b)] (2) The notice shall contain the current address and
telephone number of the offices of such plan. It shall be sent to
the insured in the same manner and at the same time as the first
written notice of cancellation or of intention not to renew given
or required by law, regulation or contract.

[(c)] (3) The insurer shall see that written notice of
intention to cancel for a reason other than nonpayment of premium
or notice of intention not to renew a policy issued in this State
is sent to the insured not less than 45 60 45 days prior to the
date of the proposed cancellation or expiration of the policy, as
the case may be. Notice given the insured by an insurance broker
or agent on behalf of the insurer shall be deemed to have been
given by the insurer for the purposes of this subsection;
provided, however, that no such notices shall be required where
the agent or broker has replaced the insurance.

(B) (1) EXCEPT IN THE CASE OF LIFE INSURANCE, HEALTH
INSURANCE, AND ANNUITIES, WHEN AN INSURER INTENDS TO CANCEL OR
NOT RENEW A LINE OF BUSINESS OR A CLASS OF RISK, THE INSURER
SHALL FILE A PLAN OF WITHDRAWAL WITH THE COMMISSIONER, AT LEAST
60 DAYS BEFORE THE DATE OF PROPOSED WITHDRAWAL.

(2) THE PLAN OF WITHDRAWAL SHALL CONTAIN A
CERTIFICATION STATEMENT, BY AN ELECTED OFFICER OF THE INSURER:

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