PARRIS N. GLENDENING, Governor

Ch. 288

motor vehicle liability insurance, and insurers, in certain notices to insureds of
renewal premium due, to notify the insured in a certain way that if the insured fails
to renew or replace the insurance before a certain date, certain registration
privileges may be suspended and certain uninsured motorist penalties may be
assessed; shall be assessed, certain evidences of registration shall be surrendered.
and certain registration privileges may be suspended; providing that insurers are not
liable for certain coverage for failure to provide the required notice; requiring
premium finance agreements and notices of intent of the a premium finance
company to cancel an insurance contract to state in a certain way that if the insured
allows motor vehicle liability insurance to lapse or fails to replace the insurance
before a certain date, certain registration privileges may be suspended and certain
uninsured motorist penalties may be assessed; shall be assessed, certain evidences
of registration shall be surrendered, and certain registration privileges may be
suspended; allowing premium finance companies to submit notice of cancellations to
insurance companies by methods other than mailing; and generally relating to notice
by insurers and premium finance companies to insureds of the compulsory nature of
motor vehicle liability insurance.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code

Section 240AA(b), 240B, 240D, 486C(a), and 486G(b) and (c)
Annotated Code of Maryland
(1994 Replacement Volume and 1994 Supplement)

Preamble

WHEREAS, motor vehicle liability insurance has been compulsory in Maryland
since 1973; and

WHEREAS, the Motor Vehicle Administration (MVA) has in place several
compulsory insurance enforcement programs that result in registration suspension and
assessment of uninsured motorist penalties for noncompliance; and this information is
printed on the reverse side of the Maryland registration card; and

WHEREAS, Maryland vehicle owners allege that if they were aware of
Maryland's compulsory insurance requirements and enforcement programs, they would
not have allowed their motor vehicle liability insurance to lapse; and

WHEREAS, the compulsory insurance enforcement programs of the MVA notify
the vehicle owner after insurance has been cancelled; and

WHEREAS, because insurers communicate with their policyholders at least once
a year, often quarterly, before the cancellation of insurance, the insurer provides a perfect
way to communicate the responsibility of Maryland vehicle owners to comply with
Maryland's compulsory insurance laws; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

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