Ch. 36

1995 LAWS OF MARYLAND

(1)      MAILED AND POSTMARKED BY THE UNITED STATES POSTAL
SERVICE ON OR BEFORE THE FILING DATE; OR

(2)      DELIVERED ON OR BEFORE THE FILING DATE TO A PRIVATE
DELIVERY SERVICE RECOGNIZED BY THE COMMISSIONER, IF THE DELIVERY IS
EVIDENCED BY A RECEIPT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 195(c).

The Insurance Article Review Committee notes, for consideration by the
General Assembly, that the meaning of the reference in, item (2) of this
section to a private delivery service "recognized by the Commissioner" is
unclear.

Defined term: "Commissioner" § 1-101

3-306. PROCURING SURPLUS LINES INSURANCE AUTHORIZED.

(A) IN GENERAL.                                                        

SURPLUS LINES INSURANCE MAY BE PROCURED FROM AN UNAUTHORIZED
INSURER IF:

(1)      FOR SURPLUS LINES INSURANCE PROCURED THROUGH A BROKER,
THE SURPLUS LINES INSURANCE IS PROCURED THROUGH A QUALIFIED SURPLUS
LINES BROKER;

(2)      A DILIGENT SEARCH IS MADE AMONG THE AUTHORIZED INSURERS
THAT ARE WRITING THE PARTICULAR KIND AND CLASS OF INSURANCE IN THE
STATE;

(3)      EXCEPT FOR INSURANCE AGAINST LIABILITY OF PERSONS
DESCRIBED IN § XX-XXX OF THIS ARTICLE [48A § 551(C)(1), (2), AND (3)], THE AMOUNT
OF SURPLUS LINES INSURANCE PROCURED FROM AN UNAUTHORIZED INSURER IS
ONLY THE EXCESS OVER THE AMOUNT THAT' CAN BE PROCURED FROM
AUTHORIZED INSURERS;

(4)      FOR INSURANCE AGAINST LIABILITY OF PERSONS DESCRIBED IN §
XX-XXX OF THIS ARTICLE[48A § 551(C)(1), (2), AND (3)], THE INSURANCE CANNOT BE
OBTAINED FROM THREE OR MORE AUTHORIZED INSURERS THAT ARE WRITING ON
A BROAD BASIS THAT PARTICULAR KIND AND CLASS OF INSURANCE;

(5)      EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, THE
SURPLUS LINES INSURANCE IS NOT PROCURED SOLELY TO GET:

(I)       A LOWER PREMIUM RATE THAN WOULD BE ACCEPTED BY AN
AUTHORIZED INSURER; OR

(II)     MORE FAVORABLE TERMS OF THE INSURANCE CONTRACT;
AND

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