PARRIS N. GLENDENING, Governor

Ch. 11

(1)     THE FUND MAY CANCEL A POLICY IF:

(I)       THE TEMPORARY REGISTRATION ISSUED FOR THE COVERED
VEHICLE UNDER § 13-405 OR § 23-107(B) OF THE TRANSPORTATION ARTICLE HAS
EXPIRED; AND

(II)     THE COVERED VEHICLE IS NOT OTHERWISE VALIDLY
REGISTERED IN THE STATE.

(2)      THE CANCELLATION MAY NOT TAKE EFFECT UNTIL THE DAY AFTER
THE TEMPORARY REGISTRATION OF THE COVERED VEHICLE EXPIRES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 243D(c) and (a)(2) through (4) and the first
and second sentences of (1).

In the introductory language of subsection (a) of this section, the reference to
"§ 20-517 of this subtitle" is added to clarify that rejection of applications and
cancellation of policies are subject to appeal.

In the introductory language of subsection (a) and in subsection (b) of this
section, the references to "the Fund" are substituted for the former references
to the "Executive Director" to conform with the terminology used in
subsections (c) and (d) of this section.

In subsections (c) and (d)(1) of this section, the former references to a "motor
vehicle" policy and a policy "covering a vehicle" are deleted as unnecessary
because the Fund does not issue any policies other than ones covering
vehicles.

In subsection (c) of this section, the references to "drive" and "driver" are
substituted for the former references to "operate" and "operator". See the
General Revisor's Note to this title.

Defined terms: "Covered vehicle" § 20-501
"Fund" § 20-101
"Insurance" § 1-101
"Person" §§ 1-101 and 20-101
"Policy" § 1-101
"Premium" § 1-101

20-517. APPEAL OF REJECTION OR CANCELLATION OF INSURANCE.

(A)     AUTHORIZED.

AN APPLICANT WHOSE APPLICATION FOR INSURANCE HAS BEEN REJECTED OR
A POLICYHOLDER WHOSE POLICY HAS BEEN CANCELED FOR A REASON OTHER
THAN NONPAYMENT OF PREMIUMS MAY APPEAL THE DECISION TO A SPECIAL
BOARD WITHIN 10 DAYS AFTER RECEIPT OF NOTICE OF THE REJECTION OR
CANCELLATION.

(B)     COMPOSITION OF SPECIAL BOARD.

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