PARRIS N. GLENDENING, Governor

Ch. 11

(B)     REGULATIONS.

(1)      THE BOARD OF TRUSTEES SHALL ADOPT AND MAKE AVAILABLE TO
EACH PRODUCER REASONABLE REGULATIONS THAT RELATE TO THE AUTHORITY
OF PRODUCERS TO BIND COVERAGE.

(2)      THE REGULATIONS SHALL INCLUDE:

(I)      THE AMOUNT OF PREMIUM TO BE COLLECTED;

(II)     THE EVIDENCE NECESSARY TO ESTABLISH THE
QUALIFICATION OF AN APPLICANT TO BE INSURED BY THE FUND;

(III)    PROCEDURES FOR NOTIFYING THE FUND OF THE BINDING OF
COVERAGE; AND

(IV)    THE TIME WITHIN WHICH THE PRODUCER IS TO GIVE NOTICE.

(C)     REFUSAL OF PRODUCER AUTHORITY; DISCIPLINARY GROUNDS.
THE FUND:

(1)      MAY REFUSE TO GRANT THE AUTHORITY OF A PRODUCER TO AN
AGENT OR BROKER THAT HAS BEEN PREVIOUSLY TERMINATED AS A PRODUCER OR
THAT HAS HAD ITS CERTIFICATE OF QUALIFICATION PREVIOUSLY REVOKED OR
SURRENDERED; AND

(2)      SUBJECT TO THE HEARING PROVISIONS OF § 20-514 OF THIS
SUBTITLE, MAY DISCIPLINE A PRODUCER THAT:

(I)       EMPLOYS OR OTHERWISE RETAINS A PERSON DESCRIBED IN
ITEM (1) OF THIS SUBSECTION; AND

(II)     ALLOWS THE PERSON TO BECOME INVOLVED IN THE
PRODUCER'S OPERATIONS OR MANAGEMENT CONTRARY TO A REQUIREMENT OF
THIS ARTICLE OR ORDER OF THE ADMINISTRATION.

(D)     LIABILITY FOR COVERAGE AT TIME OF BINDING.

SUBJECT TO SUBSECTION (E) OF THIS SECTION, THE FUND IS LIABLE FOR
COVERAGE FROM THE DATE THAT THE PRODUCER BINDS COVERAGE.

(E)     CANCELLATION OF COVERAGE.

(1) ON REVIEW OF AN APPLICATION, THE FUND. MAY CANCEL
COVERAGE AND REFUSE TO ISSUE A POLICY IF THE FUND FINDS THAT:

(I)       THE APPLICANT IS NOT QUALIFIED FOR INSURANCE ISSUED BY
THE FUND;

(II)     THE APPLICANT HAS NOT PAID THE APPROPRIATE PREMIUM;
OR

(III)   THE FUND IS AUTHORIZED TO REJECT THE APPLICATION
UNDER § 20-516 OF THIS SUBTITLE.

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