Ch. 503

LAWS OF MARYLAND

provide coverages in addition to and in excess of the minimum
coverages required by §§ 539 through 542, inclusive, of this
article and by Title 17 of the Transportation Article.

(ii) The Fund may not be required to provide
coverages in addition to and in excess of the required minimum
coverages for any applicant or policyholder except to the extent
that reinsurance for such additional or excess coverage is
available and acceptable to the Fund.

(3) (i) Premiums for all commercial coverage shall be
determined in accordance with § 243C of this article.

(ii) Notwithstanding the provisions of
subparagraph (i) of this paragraph, the rating considerations set
out in § 243C(a)(2) of this article may not be used to determine
the premium for commercial coverage.

(c)  The Fund shall pay a commission determined by the board
of trustees but not to exceed 12 percent of the total policy
premiums, to the producer of a policyholder [licensed] QUALIFIED
in this State to whom a policy of insurance is issued by the
Fund. All commissions paid by the Fund shall be fully earned. A
commission shall be deemed "fully earned" when a valid contract
of insurance is made with the Fund, at issuance of an initial
policy or endorsement thereof, as and when the correct and
correctly rated premium is fully paid to the Fund, except when:

(1)  A prospective insured fails to qualify under
subsection (a) of this section, in which event any policy issued
shall be void ab initio, or

(2)  A prospective insured's initial payment to the
Fund, or a [broker, agent] PRODUCER, or premium finance company,
is not honored, in which event any policy or endorsement issued
in reliance on such payment shall be void ab initio.

(d)  (1) Any producer qualified in Maryland may, subject to
the provisions of this section and the binding rules of the Fund,
bind the minimum required coverage for an applicant in the Fund
upon application to the producer and payment of the appropriate
premium.

(2) THE FUND MAY HOWEVER (I) REFUSE PRODUCER
AUTHORITY TO ANY AGENT OR BROKER PREVIOUSLY TERMINATED AS A
PRODUCER OR WHOSE CERTIFICATE OF QUALIFICATION HAS BEEN
PREVIOUSLY REVOKED OR SURRENDERED AND (II) PURSUANT TO THIS
SECTION MAY DISCIPLINE ANY PRODUCER WHO EMPLOYS OR OTHERWISE
RETAINS A PERSON AS DESCRIBED IN SUBPARAGRAPH (I) AND WHO ALSO
PERMITS THAT PERSON TO BECOME INVOLVED IN THE PRODUCER'S
OPERATIONS OR MANAGEMENT CONTRARY TO ANY OF THE REQUIREMENTS OF
THIS ARTICLE OR TO AN ORDER OF THE INSURANCE DIVISION.

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