WILLIAM DONALD SCHAEFER, Governor Ch. 648

IF THE INSURANCE REQUIRED UNDER THIS SECTION IS CANCELED,
THE INSURER SHALL NOTIFY THE STATE BOARD WITHIN 10 DAYS AFTER THE
DATE OF CANCELLATION.

(F) SURETY BONDS.

IF A LOCAL JURISDICTION REQUIRES AN APPLICANT FOR A LOCAL
LICENSE TO EXECUTE A BOND TO THE LOCAL JURISDICTION, THE
APPLICANT MAY SATISFY THE BOND REQUIREMENT BY SUBMITTING PROOF OF
THE INSURANCE REQUIRED UNDER THIS SECTION.

COMMITTEE COMMENT: Subsections (a), (b), (c)(1), (e), and
(f) of this section are new language derived from the
first, third, fourth, and fifth sentences and, as it
related to issuance of a State license, the second
sentence of former Art. 56, § 535(d).

Subsection (c)(2) of this section is new language
added for clarity.

Subsection (d) of this section is new language
substituted for the former inaccurate requirement that
"proof of insurance shall be shown prior to ... the
renewal of a license". An individual is not required
to submit a certificate of insurance before the State
Board does, in fact, renew the license. This
discrepancy may be based partly on the fact that the
terms or expiration dates for the insurance do not
coincide with the term or expiration date of the
license. The State Board keeps on file the
certificates of insurance of all State licensees. The
practice of the State Board is to notify the State
licensee 25 days before the insurance expires. If the
licensee does not submit proof of insurance before the
insurance expires, a charge letter is sent to the
licensee. The letter informs the licensee that the
licensee is in violation of §§ 2-604 and 2-316(a)(8)
and (11) of this title — former Art. 56, §§ 535(d)
and 539(a)(8) — and is entitled to a hearing on the
charges.

The introductory language of subsection (b) of this
section is substituted for the former references to
"{a} person, firm, or corporation engaging in the
business of electrical contracting under this
subtitle", to clarify that the insurance requirements
apply to the licensee or the person to whom the
license is assigned.

In subsection (b)(1) and (2) of this section, the
words "at least" are added to clarify that this
subsection sets minimum requirements.

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