PARRIS N. GLENDENING, Governor

Ch. 35

"Premium" § 1-101
"Qualified agent" § 1-101
"Qualified broker" § 1-101

27-608. NOTICE OF EFFECT OF FAILURE TO RENEW OR REPLACE MOTOR VEHICLE
INSURANCE.

BEFORE THE ACTUAL EXPIRATION OF A POLICY OF MOTOR VEHICLE
INSURANCE THAT RESULTS FROM NONPAYMENT OF A RENEWAL PREMIUM, THE
INSURER SHALL PROVIDE NOTICE TO THE INSURED IN CLEAR AND SPECIFIC TERMS
THAT IF THE INSURED FAILS TO RENEW OR REPLACE THE MOTOR VEHICLE
INSURANCE BEFORE THE DUE DATE, § 17-106 OF THE TRANSPORTATION ARTICLE
PROVIDES THAT UNINSURED MOTORIST PENALTIES BE ASSESSED AND THAT
EVIDENCES OF REGISTRATION BE SURRENDERED TO THE MOTOR VEHICLE
ADMINISTRATION AND THAT FAILURE TO SURRENDER THE EVIDENCES OF
REGISTRATION MAY RESULT IN SUSPENSION OF CURRENT AND FUTURE
REGISTRATION PRIVILEGES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 240B{d).

The reference to § 17-106 of the Transportation Article "provid[ing]" that
uninsured motorist penalties be assessed is substituted for the former
reference to "requiring]" the assessment of those penalties because § 17-106
of the Transportation Article makes the imposition of uninsured motorist
penalties discretionary.

Defined terms: "Insurance" § 1-101
"Insurer" § 1-101
"Policy" § 1-101
"Premium" § 1-101

27-609. LIABILITY OF INSURER FOR COVERAGE.
(A) IN GENERAL.

(1) IF AN INSURER FAILS TO COMPLY WITH ANY PROVISION OF § 27-601,
§ 27-602, § 27-603, § 27-604, § 27-605, OR § 27-607 OF THIS SUBTITLE, THE INSURER IS
LIABLE TO THE APPLICANT FOR THE COVERAGE THAT WAS REQUESTED, OR THAT
WOULD HAVE BECOME EFFECTIVE EXCEPT FOR THE FAILURE TO COMPLY WITH
THESE PROVISIONS, UNLESS THE PERSON SEEKING COVERAGE:

(I) NO LONGER WISHES THE COVERAGE;

(II) HAS OBTAINED OTHER SUBSTANTIALLY EQUIVALENT

COVERAGE; OR

(III) FAILS TO TENDER OR PAY THE PREMIUM AFTER REASONABLE
DEMAND FOR THE PREMIUM HAS BEEN MADE.

(2) THE LIABILITY OF AN INSURER UNDER PARAGRAPH (1) OF THIS
SUBSECTION IS IN ADDITION TO ANY OTHER PENALTIES APPLICABLE BY LAW.

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