WILLIAM DONALD SCHAEFER, Governor

excluded from coverage under a policy from recovering
certain benefits under the policy under certain
circumstances; prohibiting a person excluded from coverage
from operating the vehicle unless separately insured; making
a stylistic change; and generally relating to voluntary
exclusions by certain insureds of certain individuals from
coverage under certain automobile insurance policies.

BY adding to

Article 48A - Insurance Code

Section 240C-2 and 543(f)

Annotated Code of Maryland

(1986 Replacement Volume and 1988 Supplement)

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 243B(a)

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

240C-2.

(A)  IF AN INSURER UNDERTAKES TO UNDERWRITE OR RENEW A
POLICY OF PRIVATE PASSENGER AUTOMOBILE INSURANCE UNDER WHICH MORE
THAN 1 INDIVIDUAL IS INSURED, THE FIRST NAMED INSURED MAY REQUEST
THAT THE INSURER EXCLUDE 1 OR MORE INDIVIDUALS IN THE INSURED'S
HOUSEHOLD FROM ALL COVERAGE UNDER THE POLICY WHEN THE VEHICLE IS
OPERATED BY THE SPECIFICALLY NAMED INDIVIDUAL. A PERSON EXCLUDED
FROM THE POLICY MAY NOT OPERATE THE VEHICLE UNLESS THE PERSON IS
INSURED UNDER A SEPARATE POLICY.---------------------------------

(B)  THE NUMBER OF INDIVIDUALS EXCLUDED UNDER THIS SECTION
SHALL BE LESS THAN THE TOTAL NUMBER OF INDIVIDUALS IN THE FIRST
NAMED INSURED'S HOUSEHOLD THAT WOULD OTHERWISE HAVE BEEN COVERED
ABSENT THE EXCLUSION.

(C)  THE EXCLUSION OF INDIVIDUALS UNDER THIS SECTION:

(1) IS LIMITED TO FAMILY MEMBERS OF THE FIRST NAMED
INSURED THAT:

INSURED; AND

(I) RESIDE IN THE HOUSEHOLD OF THE FIRST NAMED

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