PARRIS N. GLENDENING, Governor

Ch. 36

POLICY OR CONTRACT ISSUED BY AN AUTHORIZED INSURER, FOR THE PURPOSE OF
INDUCING OR ATTEMPTING TO INDUCE THE OWNER OF THE POLICY OR CONTRACT
TO FORFEIT OR SURRENDER IT OR ALLOW IT TO LAPSE IN ORDER TO REPLACE IT
WITH ANOTHER; OR

(17) HAS NOT HELD AN APPOINTMENT WITH A LICENSED SOCIETY FOR
MORE THAN 2 YEARS AFTER THE DATE OF RENEWAL.

(C) PENALTY.

INSTEAD OF SUSPENDING OR REVOKING A CERTIFICATE OF QUALIFICATION,
THE COMMISSIONER MAY IMPOSE ON THE HOLDER, FOR A FIRST OR SECOND
OFFENSE, A PENALTY OF NOT LESS THAN $25 BUT NOT EXCEEDING $500.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 344E(4) and 344G.

In subsection (a)(3) of this section, the reference to "violat[ing] subsection (b)
of this section" is substituted for the former reference to "giv[ing] cause for
revocation or suspension" because the grounds for suspending or revoking a
certificate of qualification are listed in subsection (b) of this section.

In the introductory language of subsection (b) of this section, the former
phrase "for such period as he may determine", which modified "suspend", is
deleted as implicit in the Commissioner's power to suspend a certificate of
qualification.

In subsection (b)(1) of this section, the former phrase "as herein defined",
which modified "insurance", is deleted as unnecessary since the term
"insurance" is defined in Title 1 of this article and not in this subtitle.

In subsection (b)(3) of this section, the term "certificate of qualification" is
substituted for the former term "license" for consistency.

In subsection (b)(7) of this section, the former reference to the "Unsatisfied
Claim and Judgment Fund" is deleted as obsolete. The Maryland Automobile
Insurance Fund now handles virtually all of the matters that formerly were
handled by the Unsatisfied Claim and Judgment Fund. See Ch. 73, Acts of
1972. The Insurance Article Review Committee calls this deletion to the
attention of the General Assembly.

Also in subsection (b)(7) of this section, the former term "bona fide", which
modified "intention", is deleted as surplusage.

Subsection (c) of this section is revised to state that the Commissioner may
impose a penalty, rather than "accept ... a fine", to conform to other revised
provisions on civil penalties throughout this article.

Defined terms: "Authorized insurer" § 1-101
"Certificate of qualification" § 8-401
"Commissioner" § 1-101
"Fraternal benefit agent" § 8-401

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