Ch. 11                                1996 LAWS OF MARYLAND

insurance is substituted for. the former reference to private passenger
"automobile" insurance to conform to the terminology used elsewhere in this
title.

Defined terms: "Fund" § 20-101
"Insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Producer" § 20-101

20-513. ACTIONS AGAINST PRODUCERS.

THE FUND MAY REFUSE TO ACCEPT FURTHER APPLICATIONS FROM A
PRODUCER OR MAY TERMINATE THE AUTHORITY OF THE PRODUCER TO BIND
COVERAGE OR BOTH IF:

(1)     THE FUND FINDS THAT THE PRODUCER HAS ENGAGED IN THE
PRACTICE OF BINDING COVERAGE IN THE FUND IN VIOLATION OF REGULATIONS
ADOPTED BY THE BOARD OF TRUSTEES; OR

(2)     AFTER DEMAND HAS BEEN MADE BY THE FUND, THE PRODUCER
FAILS TO PAY MONEY OWED THE FUND AS A RESULT OF:

(I). THE BINDING OR CHANGE OF COVERAGE; OR

(II) A COMMISSION PAID TO THE PRODUCER ON A POLICY THAT IS
CANCELED AFTER THE EFFECTIVE DATE OF COVERAGE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former. Art. 48A, § 243B(e) and (f)(1).

In item (1) of this section, the former reference to "rules" is deleted as
included in the reference to "regulations". See the General Revisor's Note to
this article.

Defined terms: "Board of Trustees" § 20-101
"Fund" § 20-101
"Policy" § 1-101
"Producer" § 20-101

20-514. NOTICE AND HEARING.

(A)     REQUIRED.

EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, THE FUND SHALL
GIVE PRIOR WRITTEN NOTICE TO A PRODUCER OF ITS INTENDED ACTION UNDER §
20-513 OF THIS SUBTITLE AND GIVE THE PRODUCER AN OPPORTUNITY FOR A
HEARING BEFORE TAKING THE ACTION.

(B)     EXCEPTION.

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