WILLIAM DONALD SCHAEFER, Governor                        Ch. 4

CHAPTER 4

(House Bill 375)

AN ACT concerning

Maryland Automobile Insurance Fund - Producer Commissions

FOR the purpose of requiring that commissions be prohibiting
commissions from being paid by the Maryland Automobile
Insurance Fund to producers on a pro rata basis rather than
a fully earned basis; fixing commissions paid by the Fund
at a certain amount in certain cases and retaining the power
of the Board of Trustees of the Fund to fix the level of
commissions in certain cases; making this Act an emergency
measure; and generally relating to the payment of
commissions by the Maryland Automobile Insurance Fund to
producers of policyholders to whom a policy of insurance is
issued by the Fund.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 243B

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.

(a) Subject to the provisions of this subtitle generally
and § 243D of this subtitle in particular, the Fund is authorized
and shall sell, issue, and deliver, upon payment of the premium
set by the Fund, a policy of automobile liability insurance to
any Maryland resident who owns an automobile validly registered
with the Motor Vehicle Administrator, or has a valid license to
operate an automobile issued by the Motor Vehicle Administrator,
and who does not owe to the Fund any unpaid insurance premium
with respect to a prior expired or cancelled policy, and who
either (i) has in good faith attempted to obtain a policy of
automobile liability insurance from at least two private insurers
authorized to write such a policy in this State and has been
rejected or refused such a policy by two such private insurers
for any reason other than nonpayment of premiums, or (ii) who has
had a policy of automobile liability insurance cancelled or
nonrenewed for any reason other than nonpayment of premiums, by a
private insurer authorized to write such a policy in this State.
The purpose of the Fund is to provide automobile insurance to

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