PARRIS N. GLENDENING, Governor

Ch. 11

(VII) EMERGENCY VEHICLE REPAIR SERVICE COVERAGE.

(3) IN THIS SECTION, "ADD-ON COVERAGE" DOES NOT INCLUDE FIRE,
LIFE, AND HEALTH INSURANCE COVERAGES THAT ARE NOT DIRECTLY RELATED TO
THE UNDERLYING MOTOR VEHICLE INSURANCE COVERAGE AND ARE WRITTEN BY
AN AUTHORIZED INSURER.

(B)     REQUIRED DISCLOSURES.

(1)      AT THE TIME COVERAGE PROVIDED BY THE FUND IS BOUND AND
BEFORE ANY ADD-ON COVERAGE IS SOLD, A PRODUCER SHALL PROVIDE A CLEAR
AND CONSPICUOUS WRITTEN DISCLOSURE, IN THE FORM APPROVED BY THE
COMMISSIONER, THAT:

(I)       STATES THAT THE COST OF ADD-ON COVERAGE IS NOT PART
OF THE PREMIUM FOR THE RELATED POLICY ISSUED BY THE FUND;

(II)     INCLUDES AN ITEMIZED LIST OF ANY ADD-ON COVERAGES TO
BE SOLD TO THE INSURED;

(III)    STATES THE NATURE AND COST OF EACH ADD-ON COVERAGE
TO BE SOLD; AND

(IV)    STATES THAT ADD-ON COVERAGE IS OPTIONAL AND IS NOT
REQUIRED UNDER § 17-103 OF THE TRANSPORTATION ARTICLE.

(2)      BEFORE AN INSURED MAY PURCHASE ADD-ON COVERAGE, THE
INSURED SHALL EXPRESSLY CONSENT TO THE PURCHASE BY SIGNING THE
DISCLOSURE FORM.

(C)     CONTINUATION OF POLICY.

ON CONTINUATION OF A POLICY THAT INCLUDES ADD-ON COVERAGE, AN
INSURED NEED NOT SIGN A DISCLOSURE FORM IF:

(1)      THE NUMBER AND TYPE OF ADD-ON COVERAGES UNDER THE
CONTINUATION DO NOT CHANGE FROM THE PRECEDING POLICY; AND

(2)      THE INSURED HAS SIGNED THE ORIGINAL DISCLOSURE FORM.

(D)     PROHIBITED ACTS; PENALTIES.
(1) A PRODUCER MAY NOT:

(I)       REQUIRE AN INSURED OR PROSPECTIVE INSURED TO
PURCHASE AN ADD-ON COVERAGE AS A CONDITION TO PURCHASING THE RELATED
POLICY ISSUED BY THE FUND; OR

(II)     SELL ADD-ON COVERAGE OR ANY COMBINATION OF ADD-ON
COVERAGES IN AN AMOUNT THAT EXCEEDS $200 PER COVERED VEHICLE IN
CONNECTION WITH A PRIVATE PASSENGER AUTO INSURANCE POLICY.

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