Ch. 475                                    1995 LAWS OF MARYLAND

maintain an insured in a classification entailing a higher premium because of the
insured's driving record for a period longer than three years. [However the] THE
removal of a discount may not be considered a violation of this [subsection]
PARAGRAPH. FOR THE PURPOSE OF DETERMINING WHETHER TO CLASSIFY AN
INSURED IN A CLASSIFICATION ENTAILING A HIGHER PREMIUM, THE INSURER MAY
ONLY REVIEW A PERIOD OF TIME NOT GREATER THAN THREE YEARS PRIOR TO:

1. IF THE POLICY HAS NOT YET BEEN ISSUED,:

A.      THE DATE OF THE APPLICATION;

2. ONCE A POLICY HAS BEEN ISSUED, THE DATE OF
ISSUANCE OF THE POLICY; OR OR

B.      THE PROPOSED EFFECTIVE DATE OF THE POLICY; OR

3. 2. UPON RENEWAL OF A POLICY, THE EFFECTIVE DATE
OF THE RENEWAL.

244D.

The following standards apply to the making and use of rates pertaining to all
classes of insurance to which this subtitle is applicable:

(e) All rates shall be made in accordance with the following special principles:

(1) (I) An insurer under an automobile liability insurance policy may not
classify or maintain an insured in a classification entailing a higher premium because of a
specific claim for a period longer than 3 years, and an insurer may not classify or maintain
an insured in a classification entailing a higher premium because of the insured's driving
record for a period longer than 3 years.

(II)    FOR THE PURPOSE OF DETERMINING WHETHER TO CLASSIFY
AN INSURED IN A CLASSIFICATION ENTAILING A HIGHER PREMIUM, THE INSURER
MAY ONLY REVIEW A PERIOD OF TIME NOT GREATER THAN 3 YEARS PRIOR TO:

1. IF THE POLICY HAS NOT YET BEEN ISSUED,:

A.      THE DATE OF THE APPLICATION;

2. ONCE A POLICY HAS BEEN ISSUED, THE DATE OF
ISSUANCE OF THE POLICY; OR OR

B.      THE PROPOSED EFFECTIVE DATE OF THE POLICY; OR

3. 2. UPON RENEWAL OF A POLICY, THE EFFECTIVE DATE
OF THE RENEWAL.

(III)    [However, the] THE removal of a discount is not a violation of this
[subsection] PARAGRAPH.

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