WILLIAM DONALD SCHAEFER, Governor Ch. 503

[(2)] (3) The board shall adopt and make available to
each producer reasonable rules and regulations relating to the
binding authority of producers, including but not limited to the
amount of premium to be collected, the evidence necessary to
establish the applicant's qualification to be insured by the
Fund, the time within which the producer shall notify the Fund of
binding, and procedures for notifying the Fund of the binding of
coverage.

[(3)] (4) The Fund shall become liable under the
coverage bound from the date of binding by the producer;
provided, however, that the Fund, upon review of the application,
may not later than sixty days after the coverage is effective,
cancel the coverage and refuse to issue a policy upon a finding
that (i) the applicant is not qualified for insurance by the
Fund, (ii) the appropriate premium has not been paid, or (iii)
the Fund is authorized to reject the application under § 243D;
provided, however, that if the cancellation is due to nonpayment
of the appropriate premium, the Fund shall afford the applicant a
reasonable opportunity to pay the proper premium. The Fund shall
promptly notify the applicant, the producer and the Motor Vehicle
Administration of a cancellation, and the applicant shall
thereafter have the right of appeal provided for in § 243D.

(e)   If the [board] FUND finds that any producer has
engaged in the practice of binding coverage through the Fund in
violation of the rules and regulations adopted by the board, the
[board] FUND may refuse to accept further applications from the
producer, or may terminate the right of the producer to bind
coverage, or both.

(f)   If, after demand has been made by the Fund, the [agent
or broker] PRODUCER fails to pay any money that is due the Fund
as a result of the binding or change of coverage, or as a result
of any commission paid to the [agent or broker] PRODUCER on any
policy that is cancelled after the effective date of coverage,
the [board] FUND may refuse to accept further applications from
the [agent or broker] PRODUCER, terminate the authority of the
[agent or broker] PRODUCER to bind coverage with the Fund, or
both.

(g)  (1) Except as provided in paragraph (2) of this
subsection, the [board] FUND shall give prior written notice to
[an agent or broker] A PRODUCER of its intended action under
subsection (e) or (f) of this section, and provide the [agent or
broker] PRODUCER an opportunity for a hearing prior to taking the
action.

(2) If the [board] FUND determines that there is a
likelihood of substantial and immediate harm to the Fund,
policyholders of the Fund, or others because of a violation of a
binding rule of the Fund or because of a failure to pay any money
due, the [board] FUND may exercise immediately any option

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