Ch. 36

1995 LAWS OF MARYLAND

AN UNAUTHORIZED INSURER DESCRIBED IN SUBSECTION (A) OF THIS SECTION
IS LIABLE TO THE INSURED FOR LOSSES COVERED BY THE SURPLUS LINES
INSURANCE AND, ON CANCELLATION, FOR UNEARNED PREMIUMS THAT MAY
BECOME PAYABLE TO THE INSURED, WHETHER OR NOT THE SURPLUS LINES
BROKER IS INDEBTED TO THE UNAUTHORIZED INSURER FOR THE SURPLUS LINES
INSURANCE OR FOR ANY OTHER REASON.

(C)      RIGHTS OF INSURER AND BROKER NOT AFFECTED.

THIS SECTION DOES NOT AFFECT RIGHTS BETWEEN THE UNAUTHORIZED
INSURER AND THE SURPLUS LINES BROKER.'

(D)     INSURER SUBJECT TO SECTION.

EACH UNAUTHORIZED INSURER THAT ASSUMES A SURPLUS LINES DIRECT
RISK UNDER THIS SUBTITLE SUBJECTS ITSELF TO THE TERMS OF THIS SECTION:

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 192.

Throughout this section, references to an "unauthorized insurer" are
substituted for the former references to an "insurer" for consistency
throughout this section.

Defined terms: "Premium" § 1-101

"Surplus lines insurance" § 1-101
"Unauthorized insurer" § 1-1.01

3-321. DELIVERY OF POLICY, BINDER, OR COVER NOTE.

(A)     IN GENERAL.

(1)      ON PLACING SURPLUS LINES COVERAGE, A SURPLUS LINES BROKER
PROMPTLY SHALL DELIVER TO THE INSURED:                                 

(I)       THE POLICY ISSUED BY THE INSURER; OR

(II)     IF THE POLICY IS NOT AVAILABLE, A BINDER OR COVER NOTE
THAT SHOWS:

1.        THE SUBJECT, COVERAGE, CONDITIONS, AND TERM OF
THE INSURANCE; AND

2.        THE NAME AND ADDRESS OF THE INSURER.

(2)      IF A DIRECT RISK IS ASSUMED BY MORE THAN ONE INSURER, THE
POLICY, BINDER, OR COVER NOTE SHALL STATE:

(I)       THE NAME AND ADDRESS OF EACH INSURER; AND

(II)     THE PROPORTION OF THE DIRECT RISK ASSUMED BY EACH
INSURER.

(B)      REPLACEMENT OF BINDER OR COVER NOTE WITH POLICY.

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