WILLIAM DONALD SCHAEFER, Governor                    Ch. 455

(VIII) (II) EXPLAINING HOW THE CANCELLATION OR
NONRENEWALS, IF APPROVED, WILL BE IMPLEMENTED WITH RESPECT TO
INDIVIDUAL RISKS AND THE STEPS THAT WILL BE TAKEN TO ENSURE THAT
THE CANCELLATION OR NONRENEWAL DECISIONS WILL NOT BE APPLIED IN
AN ARBITRARY, CAPRICIOUS OR UNFAIRLY DISCRIMINATORY MANNER OR IN
VIOLATION OF § 234A OF THIS ARTICLE; AND

(IX) (III) INCLUDING ANY OTHER INFORMATION THE
COMMISSIONER REASONABLY REQUIRES.

(3) (5) THE COMMISSIONER SHALL REVIEW THE PLAN OF
WITHDRAWAL TO DETERMINE ITS COMPLIANCE WITH § 234A OF THIS
ARTICLE.

(4) IF THE COMMISSIONER DOES NOT DISAPPROVE THE PLAN
BEFORE THE PROPOSED DATE OF WITHDRAWAL, THE PLAN SHALL BE DEEMED
APPROVED.

(5) (6) IF A PLAN IS NOT ACCOMPANIED BY THE
INFORMATION REQUIRED BY THIS SUBSECTION, THE COMMISSIONER MAY SO
INFORM THE INSURER, AND THE PLAN SHALL BE DEEMED FILED WHEN THE
INFORMATION IS FURNISHED TO THE COMMISSIONER.

240AA.

(b) An insurer intending to take an action subject to the
provisions of this section shall, on or before [forty-five] 68 45
days prior to the proposed effective date of the action, send
written notice of its intended action to the insured at his last
known address. A written notice of cancellation or nonrenewal
shall be sent by certified mail. All other notices of action
subject to the provisions of this section shall be sent by
certificate of mailing. The notice shall be in triplicate, and
shall state in clear and specific terms, on a form approved by
the Commissioner:

[(i)] (1) The proposed action to be taken, including,
if the action is an increase in premium or reduction in coverage,
the amount of increase and the type of coverage to which it is
applicable, or the type of coverage reduced and the extent of the
reduction;

[(ii)] (2) The proposed effective date of the action;

[(iii)] (3) The insurer's actual reason or reasons
for proposing to take such action. The statement of reasons
shall be sufficiently clear and specific so that a person of
average intelligence can identify the basis for the insurer's
decision, without making further inquiry. Generalized terms such
as "personal habits," "living conditions," "poor morale," or
"violation or accident record" shall not suffice to meet the
requirements of this section;

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