PARRIS N. GLENDENING, Governor                                   Ch. 36

(6) THERE IS COMPLIANCE WITH OTHER APPLICABLE PROVISIONS OF
THIS SUBTITLE.

(B)     FAVORABLE PREMIUMS OR TERMS ALLOWED.

THIS SUBTITLE DOES NOT PROHIBIT A LOWER PREMIUM RATE OR MORE
FAVORABLE TERMS IN THE INSURANCE CONTRACT OF AN UNAUTHORIZED
INSURER IF THE RISK IS ELIGIBLE AS SURPLUS LINES UNDER SUBSECTION (A)(2), (3),
AND (4) OF THIS SECTION.

(C)     RENEWAL OF SURPLUS LINES RISK.

(1)      THIS SECTION DOES NOT PROHIBIT A SURPLUS LINES BROKER FROM
RENEWING A RISK WITH A SURPLUS LINES INSURER IF THE RISK WAS INITIALLY
WRITTEN ON A SURPLUS LINES BASIS WHEN THERE WERE FEWER THAN THREE
AUTHORIZED INSURERS ACTUALLY WRITING ON A BROAD BASIS THE PARTICULAR
KIND AND CLASS OF INSURANCE TO PROVIDE COVERAGE AGAINST LIABILITY OF
PERSONS DESCRIBED IN § XX-XXX OF THIS ARTICLE [48A § 551 (C)(1), (2), AND (3)] IN
THE STATE.

(2)      EVEN IF ON THE DATE OF RENEWAL THREE OR MORE AUTHORIZED
INSURERS ARE WRITING ON A BROAD BASIS THE PARTICULAR KIND AND CLASS OF
INSURANCE REQUIRED BY THE INSURED, A RISK INITIALLY ELIGIBLE FOR SURPLUS
LINES INSURANCE MAY BE RENEWED ON A SURPLUS LINES BASIS IF THE SURPLUS
LINES INSURER OR BROKER GIVES TO THE INSURED APPROPRIATE NOTICE OF THE
AVAILABILITY OF COMPARABLE TYPES OF INSURANCE BEING WRITTEN BY THREE
OR MORE AUTHORIZED INSURERS:

(I)       EACH YEAR; AND

(II)     SUFFICIENTLY IN ADVANCE OF THE RENEWAL DATE TO
ALLOW THE INSURED TO DETERMINE WHETHER TO RENEW THE POLICY WITH THE
SURPLUS LINES INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 184(b), (c), (d), and (a), as it related to
insurance against liability of persons described in former Art. 48A, §
551(c)(1), (2), and (3).

In subsection (a)(2) of this section, the former word "effort" is deleted as
included in the word "search".

Subsection (a)(4) of this section is revised to clarify when insurance is eligible
as surplus lines insurance for persons described in former Art. 48A, §
551(c)(1), (2), and (3) - now § XX-XXX of this article. In subsection (b) of
this section, the cross-reference to subsection (a)(4) of this section is added
for clarity.

In subsection (c)(2) of this section, the former phrase "after July 1, 1980" is
deleted as obsolete.

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