WILLIAM DONALD SCHAEFER, Governor Ch. 503

terminated are not to be automatically eligible for
reinstatement; authorizing MAIF to utilize the Maryland Tax
Refund Intercept Program to recover moneys owed by
producers; requiring all agent-producers to obtain bonds to
protect MAIF against losses due to any nonpayment of moneys
due; altering certain definitions; and generally relating to
MAIF's relations with its producers.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 243B and 243L

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

243B.

(a)  Subject to the provisions of this subtitle generally
and § 243D of this subtitle in particular, the Fund is authorized
and shall sell, issue, and deliver, upon payment of the premium
set by the Fund, a policy of automobile liability insurance to
any Maryland resident who owns an automobile validly registered
with the Motor Vehicle Administrator, or has a valid license to
operate an automobile issued by the Motor Vehicle Administrator,
and who does not owe to the Fund any unpaid insurance premium
with respect to a prior expired or cancelled policy, and who
either (i) has in good faith attempted to obtain a policy of
automobile liability insurance from at least two private insurers
authorized to write such a policy in this State and has been
rejected or refused such a policy by two such private insurers
for any reason other than nonpayment of premiums, or (ii) who has
had a policy of automobile liability insurance cancelled or
nonrenewed for any reason other than nonpayment of premiums, by a
private insurer authorized to write such a policy in this State.
The purpose of the Fund is to provide automobile insurance to
those eligible persons who are unable to obtain it in the private
market.

(b)  (1) The policy issued by the Fund shall contain the
minimum coverages required by §§ 539 through 542, inclusive, of
this article, and may contain such other provisions as may be
determined by the executive director and approved by the board of
trustees of the Fund and the Commissioner of Insurance.

(2) (i) Subject to subparagraph (ii) of this
paragraph whenever the Fund issues a policy of commercial
automobile liability insurance under this subtitle, the Fund may

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