PARRIS N. GLENDENING, Governor

Ch. 35

(3) THE NOTICE MUST STATE IN CLEAR AND SPECIFIC TERMS:

(I) THE PROPOSED ACTION TO BE TAKEN, INCLUDING:

1. FOR A PREMIUM INCREASE, THE AMOUNT OF THE
INCREASE AND THE TYPE OF COVERAGE TO WHICH IT IS APPLICABLE; AND

2. FOR A REDUCTION IN COVERAGE, THE TYPE OF
COVERAGE REDUCED AND THE EXTENT OF THE REDUCTION;

(II) THE PROPOSED EFFECTIVE DATE OF THE ACTION;

(III) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION, THE
ACTUAL REASON OF THE INSURER FOR PROPOSING TO TAKE THE ACTION;

(IV) IF THERE IS COUPLED WITH THE NOTICE AN OFFER TO
CONTINUE OR RENEW THE POLICY IN ACCORDANCE WITH § 27-606 OF THIS
SUBTITLE:

1. THE NAME OF THE INDIVIDUAL OR INDIVIDUALS TO BE
EXCLUDED FROM COVERAGE; AND

2. THE PREMIUM AMOUNT IF THE POLICY IS CONTINUED OR
RENEWED WITH THE NAMED INDIVIDUAL OR INDIVIDUALS EXCLUDED FROM
COVERAGE;

(V) THE RIGHT OF THE INSURED TO REPLACE THE INSURANCE
THROUGH THE MARYLAND AUTOMOBILE INSURANCE FUND AND THE CURRENT
ADDRESS AND TELEPHONE NUMBER OF THE FUND;

(VI) THE RIGHT OF THE INSURED TO PROTEST THE PROPOSED
ACTION OF THE INSURER AND REQUEST A HEARING BEFORE THE COMMISSIONER
ON THE PROPOSED ACTION BY SIGNING TWO COPIES OF THE NOTICE AND SENDING
THEM TO THE COMMISSIONER WITHIN 30 DAYS AFTER THE MAILING DATE OF THE
NOTICE;

(VII) THAT IF A PROTEST IS FILED BY THE INSURED, THE INSURER
MUST MAINTAIN THE CURRENT INSURANCE IN EFFECT UNTIL A FINAL
DETERMINATION IS MADE BY THE COMMISSIONER, SUBJECT TO THE PAYMENT OF
ANY AUTHORIZED PREMIUM DUE OR BECOMING DUE BEFORE THE
DETERMINATION; AND

(VIII) THE AUTHORITY OF THE COMMISSIONER TO AWARD
REASONABLE ATTORNEY FEES TO THE INSURED FOR REPRESENTATION AT A
HEARING IF THE COMMISSIONER FINDS THE PROPOSED ACTION OF THE INSURER TO
BE UNJUSTIFIED.

(4) (I) THE INSURER'S STATEMENT OF ACTUAL REASON FOR

PROPOSING TO TAKE AN ACTION SUBJECT TO THIS SECTION MUST BE SUFFICIENTLY
CLEAR AND SPECIFIC SO THAT AN INDIVIDUAL OF AVERAGE INTELLIGENCE CAN
IDENTIFY THE BASIS FOR THE INSURER'S DECISION WITHOUT MAKING FURTHER
INQUIRY.

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