WILLIAM DONALD SCHAEFER, Governor Ch. 367

and shall state in clear and specific terms, on a form approved
by the Commissioner:

(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;

(2)  The proposed effective date of the action;

(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 morals", or
"violation or accident record" shall not suffice to meet the
requirements of this section;

(4)  If there is coupled with the notice an offer to
continue or renew the policy in accordance with § 240C-1 of this
subtitle, the name of the person or persons to be excluded from
coverage, and [what] the premium [would be] AMOUNT if the policy
is continued or renewed with such person or persons excluded from
coverage;

(5)  The right of the insured to replace the insurance
through the Maryland Automobile Insurance Fund[;], and the
current address and telephone number of the Fund;

(6)  The right of the insured to protest the proposed
action and request a hearing thereon before the Commissioner by
signing 2 copies of the notice and sending them to the
Commissioner within [10] 30 days after [receipt] THE DATE OF
MAILING of the notice;

(7)  That if a protest is filed by the insured, the
current insurance will remain in effect until a determination is
made by the Commissioner upon payment of any lawful premium due
or becoming due prior to the determination; and

(8)  The authority of the Commissioner to award
reasonable counsel fees to the insured for services rendered to
the insured in connection with any such hearing if he finds the
proposed action of the insurer to be unjustified.

(c) Any statement of reasons contained in the notice given
pursuant to subsection (b)(3) of this section shall be privileged
and [shall] MAY not constitute grounds for any action against the
insurer or its representatives or any person who in good faith
furnishes to the insurer the information upon which the statement
is based.

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