PARRIS N. GLENDENING, Governor

Ch. 35

NONRENEWAL, OR PREMIUM INCREASE, SHALL OFFER TO CONTINUE OR RENEW
THE INSURANCE, BUT TO EXCLUDE ALL COVERAGE WHEN A MOTOR VEHICLE IS
OPERATED BY THE SPECIFICALLY NAMED EXCLUDED INDIVIDUAL OR INDIVIDUALS
WHOSE CLAIM EXPERIENCE OR DRIVING RECORD COULD HAVE JUSTIFIED THE
CANCELLATION, NONRENEWAL, OR PREMIUM INCREASE.

(B) REFUSAL TO ISSUE POLICY.

IF AN INSURER LEGALLY COULD REFUSE TO ISSUE A POLICY OF AUTOMOBILE
LIABILITY INSURANCE UNDER WHICH MORE THAN ONE INDIVIDUAL IS INSURED
BECAUSE OF THE CLAIM EXPERIENCE OR DRIVING RECORD OF ONE OR MORE BUT
LESS THAN ALL OF THE INDIVIDUALS APPLYING TO BE INSURED UNDER THE
POLICY, THE INSURER MAY ISSUE THE POLICY BUT EXCLUDE ALL COVERAGE WHEN
A MOTOR VEHICLE IS OPERATED BY THE SPECIFICALLY NAMED EXCLUDED
INDIVIDUAL OR INDIVIDUALS WHOSE CLAIM EXPERIENCE OR DRIVING RECORD
COULD HAVE JUSTIFIED THE REFUSAL TO ISSUE.

(C) POLICY ENDORSEMENTS.

THE POLICY DESCRIBED IN SUBSECTION (A) OR (B) OF THIS SECTION MAY BE
ENDORSED TO EXCLUDE SPECIFICALLY ALL COVERAGE FOR ANY OF THE
FOLLOWING WHEN THE NAMED EXCLUDED DRIVER IS OPERATING A MOTOR
VEHICLE COVERED UNDER THE POLICY WHETHER OR NOT THAT OPERATION OR
USE WAS WITH THE EXPRESS OR IMPLIED PERMISSION OF AN INDIVIDUAL INSURED
UNDER THE POLICY:

(1) THE EXCLUDED OPERATOR OR USER;

(2) THE VEHICLE OWNER;

(3) FAMILY MEMBERS RESIDING IN THE HOUSEHOLD OF THE
EXCLUDED OPERATOR OR USER OR VEHICLE OWNER; AND

(4) ANY OTHER INDIVIDUAL, EXCEPT FOR THE COVERAGE REQUIRED
BY §§ 16-506 AND 16-510 OF THIS ARTICLE IF THAT COVERAGE IS NOT AVAILABLE
UNDER ANOTHER AUTOMOBILE POLICY.

(D) PREMIUMS CHARGED.

THE PREMIUMS CHARGED ON A POLICY THAT EXCLUDES A NAMED DRIVER OR
DRIVERS UNDER THIS SECTION MAY NOT REFLECT THE CLAIM EXPERIENCE OR
DRIVING RECORD OF THE EXCLUDED NAMED DRIVER OR DRIVERS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 240C-1.

In subsections (a)(1) and (2), (b), and (c) of this section, the references to
"individual" and "individuals" are substituted for the former references to
"person" and "persons" because only individuals have driving records, submit
claims for accidents, and give permission to operate or use a motor vehicle.

In subsection (a)(2) of this section, the reference to a "premium increase"
being justified is added for clarity.

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