Ch. 288                              1995 LAWS OF MARYLAND

Article 48A - Insurance Code

240AA.

(b) An insurer intending to take an action subject to the provisions of this section
shall, on or before 15 days prior to the proposed effective date of the action, send written
notice of its intended action to the insured at his last known address. A written notice of
cancellation or nonrenewal shall be sent by certified mail. All other notices of action
subject to the provisions of this section shall be sent by certificate of mailing. The notice
shall be in triplicate, and shall state in clear and specific terms, on a form approved by the
Commissioner:

(1) The proposed action to be taken, including, if the action is an increase in
premium or reduction in coverage, the amount of increase and the type of coverage to
which it is applicable, or the type of coverage reduced and the extent of the reduction;

(2) The proposed effective date of the action;

(3)    The insurer's actual reason or reasons for proposing to take such action.
The statement of reasons shall be sufficiently clear and specific so that a person of
average intelligence can identify the basis for the insurers decision, without making
further inquiry. Generalized terms such as "personal habits", "living conditions", "poor
morals:, or "violation or accident-record" shall not suffice to meet the requirements of
this section;

(4)     If there is coupled with the notice an offer to continue or renew the
policy in accordance with § 240C-1 of this subtitle, the name of the person or persons to
be excluded from coverage, and the premium amount if the policy is continued or
renewed with such person or persons excluded from coverage;

(5) The right of the insured to replace the insurance through the Maryland
Automobile Insurance Fund, and the current address and telephone number of the Fund;

(6) The right of the insured to protest the proposed action and request a
hearing thereon before the Commissioner by signing 2 copies of the notice and sending
them to the Commissioner within 30 days after the date of mailing of the notice;

(7) That if a protest is filed by the insured, the current insurance will remain
in effect until a determination is made by the Commissioner upon payment of any lawful
premium due or becoming due prior to the determination; [and]

(8) The authority of the Commissioner to award reasonable counsel fees to
the insured for services rendered to the insured in connection with any such hearing if he
finds the proposed action of the insurer to be unjustified; AND

(9) THAT IF THE INSURED FAILS TO REPLACE THE INSURANCE BEFORE
THE PROPOSED EFFECTIVE DATE OF THE ACTION, REGISTRATION PLATES SHALL BE
SURRENDERED TO THE MOTOR VEHICLE ADMINISTRATION AND THAT FAILURE TO
DO SO WILL RESULT IN SUSPENSION OF CURRENT AND FUTURE REGISTRATION
PRIVILEGES AND THE ASSESSMENT OF UNINSURED MOTORIST PENALTIES AS
PROVIDED IN § 17-106 OF THE TRANSPORTATION ARTICLE.

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