Ch. 4

LAWS OF MARYLAND

the rules and regulations adopted by the board, the board 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 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 on any policy that is
cancelled after the effective date of coverage, the board may
refuse to accept further applications from the agent or broker,
terminate the authority of the agent or broker to bind coverage
with the Fund, or both.

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

(2)   If the board 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 may exercise immediately any option available to
it under subsections (e) and (f) of this section pending prompt
notice and a hearing within 10 days.

(3)  The board shall adopt the procedures for notice
and any hearing that is provided under this subsection.

(h) Any private insurer desiring to assume insurance
coverage of any policyholder insured by the Fund may do so,
provided notice of the proposal is given to the Fund at least 60
days prior to the termination of the policy, with the approval of
the insured, upon receipt of such notice, the Fund shall notify
the insured that he will no longer be eligible for insurance from
the Fund.

(i) At the time a policy of private passenger motor vehicle
insurance is issued to an applicant, the Fund shall include in
the contract a written notice to the applicant that:

(1)  In the event that the applicant chooses to seek
insurance from an insurer other than the Fund, an insurer may not
refuse to underwrite any private passenger motor vehicle
insurance risk solely because the applicant or named insured
previously obtained insurance coverage from the Fund; and

(2)   If the applicant subsequently chooses to seek
insurance from an insurer other than the Fund and that insurer
refuses to underwrite the applicant solely because the applicant
or named insured previously obtained insurance from the Fund, the

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