WILLIAM DONALD SCHAEFER, Governor                         Ch. 745

(ii) Other than collision and comprehensive deductible waiver
coverage, comprehensive and collision coverages provided by the Fund or by other
authorized insurers; or

(iii) Fire, life, and health insurance coverages that are:

1.       Not directly related to the underlying motor vehicle
insurance coverage; and

2.       Written by an authorized insurer.

(b) At the time any coverage provided by the Fund is bound and prior to the sale
of any add on, a producer shall provide a clear and conspicuous written disclosure in the
form approved by the Commissioner that:

(1) Add-ons are not part of the premium OR THE CONTRACT for the
related insurance policy issued by the Fund;

(2) Provides an itemized list of any add-ons to be sold to the insured;

(3)     States the nature and cost of each add on to be sold; and

(4)     States that add-ons are optional coverages and are not required under §
17-103 of the Transportation Article as a mandatory coverage.

(c) Before any add on may be purchased, the insured must expressly consent to
the purchase of the add on by signing the disclosure form.

(d) A producer may not require an insured or a prospective insured, as a
condition to purchasing the related insurance contract issued by the Fund, to purchase
any add on.

(D-1) A CONTRACT FOR ADD ON COVERAGES SHALL BE A SEPARATE
CONTRACT FROM THE RELATED INSURANCE CONTRACT ISSUED BY THE FUND.

(e) A pattern or practice of violations of this section by any producer may be
subject to the same penalties as a violation of § 243B(e) of this article.

(f) Upon renewal of a policy or coverage [, a]:

(1) A disclosure form need not bo signed by the insured if:

[(1)](I) The number and type of coverages under the renewal do not
change from the preceding policy or coverage; and

[(2)](II) The original disclosure is signed by the insured.

(2) A CONTRACT FOR ADD-ON COVERAGES SHALL BE A SEPARATE
CONTRACT FROM THE RELATED INSURANCE CONTRACT ISSUED BY THE FUND.

486C.

(A) IN THIS SECTION, "ADD ON" HAS THE MEANING STATED IN § 243BC OF
THIS ARTICLE.

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