PARRIS N. GLENDENING, Governor                             Ch. 348

(2) The statement shall bo sufficiently clear and specific so that a person of
average intelligence can identify the classifications without making further inquiry.

(e) All rates shall bo 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; or

B. The proposed effective date of the policy; or

2. Upon renewal of a policy, the effective date of the renewal.

(iii) The removal of a discount is not a violation of this paragraph.

(2)     An insurer's automobile and physical damage insurance premiums shall
reflect the reduction in claims, if any, attributable to the requirement that drivers under
the age of 18 must acquire a provisional driver's license before acquiring a driver's
license.

(3)     An insurer under an automobile insurance policy may not consider
accident reports and abstracts of court convictions pertaining to driving an emergency
vehicle that are on record with the Motor Vehicle Administration, as provided in §
16-117(b)(3) of the Transportation Article, for purposes of reclassifying an insured in a
classification entailing a higher premium.

(4)     An insurer under an automobile insurance policy may not consider a
probation before judgment disposition of a motor vehicle law offense [or a first offense of
driving with an alcohol concentration of 0.10 or more under § 16-205.1 of the
Transportation Article on record with the Motor Vehicle Administration, as provided in
§ 16-117(b) of the Transportation Article,] for purposes of reclassifying an insured in a
classification entailing a higher premium.

(5)     (I) If the insured notifies the insurer under an automobile insurance
policy of a change in circumstances that justifies reclassifying the insured in a different
classification or territory, the insurer shall adjust the premium charged the insured from
the date of notification.

(II) 1. IF AN INSURER CLASSIFIES AN INSURED BASED ON THE
NUMBER OF MILES AN INSURED VEHICLE IS DRIVEN, THE INSURER SHALL
IMPLEMENT AN AUDIT PROCEDURE TO ENSURE THE ACCURACY OF THE RATES
CHARGED TO INSUREDS WHO SELF-REPORT MILEAGE DATA FOR RATING
PURPOSES.

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