Ch. 11

1996 LAWS OF MARYLAND

IN DETERMINING ELIGIBILITY FOR RATES THAT ARE REASONABLY
COMPARABLE TO THOSE CHARGED BY STANDARD INSURERS, THE FUND MAY NOT
CONSIDER:

(1)     A LAPSE IN COVERAGE OF 30 DAYS OR LESS; AND

(2)     THE ADDITION OF A DRIVER TO THE POLICY WHO HAS CERTIFIED
IN A MANNER APPROVED BY THE FUND FOR THE IMMEDIATELY PRECEDING 3
CONTINUOUS YEARS THAT THE DRIVER HAS NOT HAD A MOVING TRAFFIC
VIOLATION, HAS NOT BEEN ASSESSED MORE THAN ONE POINT, AND HAS NOT HAD A
CHARGEABLE TRAFFIC ACCIDENT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 243C(d).

In the introductory language of subsection (a) of this section, the reference to
"continuation" of coverage is substituted for the former reference to
"renewal" coverage to conform to the practice of the Fund. See Maryland
Automobile Insurance Fund v. Sparks, 42 Md. App. 382 (1979), which held
that the General Assembly has not addressed the authority of the Fund to
renew policies.

Also in the introductory language of subsection (a) of this section, the former
reference to "[b]eginning January 1, 1976" is deleted as obsolete.

In subsection (a)(3) of this section, the reference to "the Motor Vehicle
Administration" is added for clarity.

In subsection (c) of this section, the reference to "rates that are reasonably
comparable to those charged by standard insurers" is substituted for the
former reference to "this rate" for clarity.

Defined terms: "Commissioner" § 1-101
"Fund" § 20-101
"Insurer" § 1-101
"Policy" § 1-101

20-509. AUTHORITY OF PRODUCERS TO BIND COVERAGE.
(A) IN GENERAL.

(1)      SUBJECT TO THIS SECTION AND THE REGULATIONS THAT RELATE
TO THE BINDING OF COVERAGE, A PRODUCER MAY BIND THE MINIMUM REQUIRED
COVERAGE FOR AN APPLICANT IN THE FUND IF THE APPLICANT SUBMITS AN
APPLICATION TO THE PRODUCER AND PAYS THE APPROPRIATE PREMIUM.

(2)     TO EFFECT COVERAGE, THE PRODUCER MUST RECEIVE PAYMENT
OF THE APPROPRIATE PREMIUM REQUIRED UNDER THE REGULATIONS THAT
RELATE TO THE BINDING OF COVERAGE.

(3)     PAYMENT OF THE APPROPRIATE PREMIUM DOES NOT OCCUR SO AS
TO EFFECT COVERAGE IF PAYMENT OF ALL OR PART OF THE PREMIUM IS MADE BY
AN INSTRUMENT THAT IS LATER DISHONORED.

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