PARRIS N. GLENDENING, Governor

Ch. 11

In subsection (e) of this section, the former reference to void "ab initio" (i.e.,
"from the beginning") is deleted as unnecessary. The term "void" is commonly
used by itself to describe an agreement that is void from the beginning or
absolutely void. This is in contrast to the term "voidable", which is used to
describe an agreement that may be declared void at the election of a party.

Defined terms: "Association member" § 20-101
"Covered vehicle" § 20-501
"Fund" § 20-101
"Insurance" § 1-101
"Person" §§ 1-101 and 20-101
"Policy" § 1-101
"Premium" § 1-101
"Producer" § 20-101

20-503. CONTENTS OF POLICIES.

(A)     IN GENERAL.

EACH POLICY ISSUED BY THE FUND SHALL CONTAIN THE MINIMUM
COVERAGES REQUIRED UNDER TITLE 19, SUBTITLE 5 OF THIS ARTICLE AND MAY
CONTAIN OTHER PROVISIONS DETERMINED BY THE EXECUTIVE DIRECTOR AND
APPROVED BY THE BOARD OF TRUSTEES AND THE COMMISSIONER.

(B)     REQUIRED DISCLOSURES.

AT THE TIME A POLICY OF PRIVATE PASSENGER AUTO LIABILITY INSURANCE
IS ISSUED TO AN APPLICANT, THE FUND SHALL INCLUDE IN THE POLICY A WRITTEN
NOTICE TO THE APPLICANT THAT CONTAINS THE FOLLOWING DISCLOSURES:

(1)     THE TIME AND THE CONDITIONS UNDER WHICH THE APPLICANT IS
ELIGIBLE TO SEEK INSURANCE FROM AN ASSOCIATION MEMBER;

(2)     THAT IF THE APPLICANT SEEKS INSURANCE FROM AN ASSOCIATION
MEMBER, THE ASSOCIATION MEMBER MAY NOT REFUSE TO UNDERWRITE THE
PRIVATE PASSENGER AUTO LIABILITY INSURANCE RISK SOLELY BECAUSE THE
APPLICANT OR NAMED INSURED PREVIOUSLY OBTAINED INSURANCE FROM THE
FUND; AND

(3)     THAT IF THE APPLICANT SEEKS INSURANCE FROM AN ASSOCIATION
MEMBER AND THE ASSOCIATION MEMBER REFUSES TO UNDERWRITE THE
APPLICANT SOLELY BECAUSE THE APPLICANT OR NAMED INSURED PREVIOUSLY
OBTAINED INSURANCE FROM THE FUND, THE APPLICANT MAY FILE A COMPLAINT
WITH THE COMMISSIONER AGAINST THAT ASSOCIATION MEMBER.

(C)     ADDITIONAL AND EXCESS COMMERCIAL COVERAGES.

WHENEVER THE FUND ISSUES A POLICY OF COMMERCIAL AUTO LIABILITY
INSURANCE UNDER THIS SUBTITLE, THE FUND:

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