Ch. 36                                          1995 LAWS OF MARYLAND

(B) FORM AND CONTENTS OF REPORT.

THE REPORT SHALL BE VERIFIED IN THE MANNER AND CONTAIN THE
INFORMATION THAT THE COMMISSIONER REQUIRES.

(C) CREDIT FOR EXPENSES.                                                                 

A SURPLUS LINES BROKER MAY CREDIT ANY EXAMINATION EXPENSE PAID OR
ASSESSED UNDER § 2-208 OF THIS ARTICLE AGAINST THE PREMIUM RECEIPTS TAX
DUE.

(D) APPLICATION OF TITLE 6.

WITH RESPECT TO A PENALTY THAT HAS BECOME FINAL, A SURPLUS LINES
BROKER IS SUBJECT TO THE PROVISIONS OF TITLE 6 OF THIS ARTICLE RELATING TO
PENALTIES, INTEREST, AUDITS, ASSESSMENTS, LIMITATIONS, APPEALS, AND
REFUNDS.

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

In subsection (d) of this section, the former phrase "on or after July 1, 1982"
is deleted as obsolete.

Defined terms: "Commissioner" § 1-101
"Premium" § 1-101

3-326. DELIVERY OF FALSE BINDER OR COVER NOTE PROHIBITED.

(A)     IN GENERAL.

A SURPLUS LINES BROKER MAY NOT:

(1)      KNOWINGLY OR NEGLIGENTLY DELIVER A FALSE BINDER OR
COVER NOTE; OR

(2)      FAIL TO NOTIFY THE INSURED PROMPTLY OF ANY MATERIAL
CHANGE WITH RESPECT TO SURPLUS LINES INSURANCE BY DELIVERY TO THE
INSURED OF A SUBSTITUTE BINDER OR COVER NOTE AS PROVIDED IN § 3-321 OF
THIS SUBTITLE.

(B)     VIOLATION OF ARTICLE.

A VIOLATION OF SUBSECTION (A) OF THIS SECTION IS A VIOLATION OF THIS
ARTICLE.

(C)     PENALTY.

A PERSON THAT VIOLATES SUBSECTION (A) OF THIS SECTION IS GUILTY OF A
MISDEMEANOR AND ON CONVICTION IS SUBJECT TO THE PENALTY PROVIDED BY §
XX-XXX [48A § 12] OF THIS ARTICLE OR TO ANY GREATER APPLICABLE PENALTY
PROVIDED BY LAW.

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