Ch. 504

LAWS OF MARYLAND

CHAPTER 50 4

(House Bill 286)

AN ACT concerning

Maryland Automobile Insurance Fund - Claims Operations
and Refund Penalties

FOR the purpose of authorizing employees of the Maryland
Automobile Insurance Fund to record, with consent,
statements of policyholders, claimants, and other
appropriate parties in order to preserve necessary and
relevant evidence; prohibiting the imposition of a certain
penalty; and generally relating to claims operations and
refund penalties of the Maryland Automobile Insurance Fund.

BY adding to

Article 48A - Insurance Code

Section 243(b)(4) and 243F(c)

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.

(b)(4) IN THE EVENT A POLICY ISSUED BY THE FUND IS
CANCELED BY A PERSON OTHER THAN THE FUND OR CANCELED FOR
NONPAYMENT OF PREMIUM, THE FUND MAY NOTE IMPOSE ANY SHORT RATE
PENALTY BY REFUNDING AN AMOUNT LESS THAN THE PRO RATE UNEARNED
GROSS PREMIUM, INCLUDING ANY UNEARNED COMMISSIONS.

243F.

(C) NOTWITHSTANDING THE PROVISIONS OF ARTICLE 27, § 555B OF
THE CODE, IF THE PARTY BEING RECORDED IS ADVISED IN ADVANCE OF
THE RECORDING AND THEREAFTER CONSENTS TO THE RECORDING, THE
EXECUTIVE DIRECTOR MAY AUTHORIZE EMPLOYEES OF THE FUND TO MONITOR
OR RECORD ANY TELEPHONE CONVERSATION RELEVANT TO AN ACCIDENT OR
CLAIM WITH A POLICYHOLDER, WITNESS, CLAIMANT, INVESTIGATING
OFFICER, OR OTHER INTERESTED PARTY WHO HAS OR MIGHT HAVE
INFORMATION RELEVANT TO AN THE ACCIDENT OR CLAIM.

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

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