Ch. 11

1996 LAWS OF MARYLAND

(I)       THE NUMBER OF POINTS ACCUMULATED BY AN INSURED OR
APPLICANT FOR INSURANCE UNDER THE POINT SYSTEM PROVIDED FOR IN TITLE 16,
SUBTITLE 4 OF THE TRANSPORTATION ARTICLE; OR

(II)     THE PRIOR CLAIMS EXPERIENCE OF AN INSURED OR
APPLICANT FOR INSURANCE.

(C)     COMMERCIAL PREMIUMS.

(1)      PREMIUMS FOR ALL COMMERCIAL COVERAGE SHALL BE
DETERMINED IN ACCORDANCE WITH THIS SECTION AND § 20-508 OF THIS SUBTITLE.

(2)      NOTWITHSTANDING PARAGRAPH (1) OF THIS SUBSECTION, THE
RATING PRINCIPLES UNDER § XX-XXX [ART. 48A, § 242C(A)(2)] OF THIS TITLE MAY
NOT BE USED TO DETERMINE THE PREMIUM FOR COMMERCIAL COVERAGE.

(D)     CONSIDERATION OF STATUTORY PURPOSE.

IN REVIEWING RATES FILED BY THE FUND, THE COMMISSIONER SHALL
CONSIDER NOT ONLY THE RATING PRINCIPLES UNDER § XX-XXX [ART. 48A, § 242(C)]
OF THIS ARTICLE BUT ALSO THE STATUTORY PURPOSE OF THE FUND UNDER § 20-301
OF THIS TITLE.

(E)     COLLECTION BY MOTOR VEHICLE ADMINISTRATION.

(1)      THE MOTOR VEHICLE ADMINISTRATION AND EXECUTIVE
DIRECTOR MAY ARRANGE FOR THE MOTOR VEHICLE ADMINISTRATION TO
COLLECT PREMIUMS ON POLICIES ISSUED BY THE FUND WHEN THE MOTOR VEHICLE
ADMINISTRATION ISSUES A DRIVER'S LICENSE OR CERTIFICATE OF REGISTRATION.

(2)      A PREMIUM COLLECTED UNDER THIS SUBSECTION SHALL BE PAID
TO THE STATE TREASURER FOR THE ACCOUNT OF THE FUND.

(F)      FINANCING OF PREMIUMS.

(1)      THE FUND MAY NOT:

(I)       PROVIDE DIRECTLY OR INDIRECTLY FOR THE FINANCING OF
PREMIUMS; OR

(II)     ACCEPT PREMIUMS ON AN INSTALLMENT BASIS.

(2)      A PREMIUM MAY BE FINANCED ONLY BY A PREMIUM FINANCE
COMPANY REGISTERED WITH THE COMMISSIONER IN ACCORDANCE WITH § 23-201
OF THIS ARTICLE.

(3)      IF A PROSPECTIVE INSURED'S INITIAL PAYMENT TO THE FUND, A
PRODUCER, OR PREMIUM FINANCE COMPANY IS NOT HONORED, A POLICY OR
ENDORSEMENT ISSUED IN RELIANCE ON THAT PAYMENT IS VOID.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 243B(b)(3) and (c)(3)(ii) and 243C(a)
through (c).

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