PARRIS N. GLENDENING, Governor                             Ch. 352

Article 48A - Insurance Code

240L.

WITH RESPECT TO PRIVATE PASSENGER MOTOR VEHICLE INSURANCE, FOR
THE PURPOSES OF THE CANCELLATION OR NONRENEWAL OF POLICIES, AND
SUBJECT TO § 234A OF THIS ARTICLE, AN INSURER MAY UTILIZE UNDERWRITING
STANDARDS THAT HAVE NOT BEEN SUBJECT TO STATISTICAL VALIDATION IF:

(1) THE STANDARDS ARE BASED ON FACTORS THAT ADVERSELY
AFFECT THE LOSSES OR EXPENSES OF INSURERS; AND

(I) THE STATISTICAL VALIDATION IS NOT AVAILABLE; OR

(II) THE STATISTICAL VALIDATION IS UNDULY BURDENSOME TO
PRODUCE: OR

(2) THE STANDARDS RELATE TO:

(I) THE SUBMISSION BY THE APPLICANT OR POLICYHOLDER OF A
FALSE OR FRAUDULENT CLAIM OR APPLICATION OR OTHER ACTION THAT WOULD
CONSTITUTE A VIOLATION OF § 233A OF THIS ARTICLE; OR

(II) THE CONVICTION OF THE INSURED OF A CRIME THAT
INCREASES THE HAZARD INSURED AGAINST.

243B.

(a) (1) Subject to the provisions of this subtitle generally and § 243D of this
subtitle in particular, the Fund is authorized and shall sell, issue, and deliver, upon
payment of the premium set by the Fund, a policy of automobile liability insurance to any
Maryland resident:

(i) Who owns an automobile validly registered with the Motor Vehicle
Administration, or has a valid license to operate an automobile issued by the Motor
Vehicle Administration;

(ii) Who does not owe to the Fund either any unpaid insurance
premium with respect to a prior expired or conceited policy, or claim payments obtained
by fraud; and

(iii) Who [either:

1. Has in good faith attempted to obtain a policy of automobile
liability insurance from at least two private insurers authorized to write such a policy in
this State and has been rejected or refused] HAS RECEIVED A WRITTEN DECLINATION
FOR [such] a policy [by] OF AUTOMOBILE LIABILITY INSURANCE FROM two [such]
private insurers AUTHORIZED TO WRITE SUCH A POLICY IN THIS STATE AND
DESIGNATED BY THE COMMISSIONER AS A NONSTANDARD INSURER for any reason
other than nonpayment of premiums[;or

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