VETOES

of Section 240C-1, it may give individuals in some situations the
impression that they have insurance coverage when in fact they do
not.

The bill provides that a person excluded from a policy may not
operate the named insured's vehicle unless the excluded person is
insured under a separate policy, this language would seem to
allow excluded drivers to operate vehicles from which they are
excluded, with coverage falling to their own carriers. However,
since that coverage is not anticipated or considered by the
carrier when rating the policy, adequate premiums for this
additional risk are not assessed. This language might nullify
the operation of standard "use of other automobiles" clauses
contained in many private automobile insurance policies. Such
clauses are designed to exclude coverage of other vehicles unless
used in the manner allowed by the policy. If such clauses are
not nullified, then the bill may leave both the excluded driver
and the named insured exposed to personal liability, that is,
uninsured, while giving the illusion of coverage. Enactment of
this bill could result in cases where the driver of an automobile
believes they have insurance, only to find at the time of an
accident that they are not insured. For these reasons, I have
decided to veto Senate Bill 327.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 327

AN ACT concerning

Motor Vehicle Insurance - Voluntary Exclusions
from Coverage

FOR the purpose of allowing a first named insured under a policy
of private passenger automobile insurance or under a policy
issued by the Maryland Automobile Insurance Fund to request
the exclusion of certain individuals from coverage under the
policy under certain circumstances; limiting the total
number of individuals that may be excluded from a policy;
limiting the types of individuals that may be excluded;
requiring that the first named insured or other insureds not
excluded own the vehicles insured under the policy;
prohibiting the premium on the policy from taking into
account the claims experience or driving record of any
excluded individual; providing for the applicability of the
exclusion; providing that certain individuals excluded are
entitled to coverage by the Maryland Automobile Insurance
Fund under certain circumstances; prohibiting a person

- 4610 -