Ch. 6

LAWS OF MARYLAND

(2) The insurance must be eligible as surplus line in
accordance with the provisions of this paragraph:

(i) A diligent search and effort must be made
among the insurers who are authorized to transact and are
actually writing the particular kind and class of insurance in
this State[, and] AND, except for insurance described in
subsection (a)(2) of this [section] SECTION, the amount of
insurance eligible for an unauthorized insurer is only the excess
over the amount procurable from authorized insurers.

(ii) Except for subsection (c) of this section,
the insurance may not be procured for the sole purpose of
securing advantages either as to:

1.  A lower premium rate than would be
accepted by an authorized insurer[,]; or

2.  Terms of the insurance contract.

DRAFTER'S NOTE:

Error: Omitted, misplaced, and incorrect punctuation
in Article 48A, § 184(b)(2).

Occurred: The incorrect and omitted punctuation
occurred in Ch. 790, Acts of 1980; the misplaced
punctuation occurred in Ch. 553, Acts of 1963.

231.

(b) No form or plan of insurance covering any group or
combination of persons or risks shall be written or delivered
within or without this State to cover persons or risks in this
State at any preferred rate or on any form other than as offered
to persons not in the group or combination and to the public
generally, unless the form, plan of insurance, and the rates or
premiums to be charged therefor have been submitted to and
approved by the Commissioner as being not unfairly
discriminatory, and as not otherwise being in conflict with
subsection (a) [above] OF THIS SECTION or with any provision of
Subtitle 16 of this article (rates and rating organization) to
the extent that such Subtitle 16 is, by its terms, applicable
thereto.

DRAFTER'S NOTE:

Error: Stylistic error in Article 48A, § 231(b).
Occurred: Ch. 553, Acts of 1963.
240A.

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