Ch. 362                                      LAWS OF MARYLAND

Approved May 19, 1989.

CHAPTER 362

(House Bill 53)

AN ACT concerning

Motor Vehicle Liability Insurance - Binders

FOR the purpose of providing that binders for motor vehicle
liability insurance in effect for certain periods of time
are subject to certain procedural requirements; and
generally relating to motor vehicle liability insurance
binders.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 240AA(a)

Annotated Code of Maryland

(1986 Replacement Volume and 1988 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 OR A BINDER OF MOTOR VEHICLE LIABILITY
INSURANCE, IF THE BINDER IS IN EFFECT FOR 60 45 DAYS OR LONGER,
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 premiums
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.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

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