Ch. 35

1997 LAWS OF MARYLAND

(B) FAILURE TO COMPLY WITH § 27-608.

LIABILITY FOR COVERAGE DOES NOT APPLY TO FAILURE TO COMPLY WITH §
27-608 OF THIS SUBTITLE, AS IT RELATES TO MOTOR VEHICLE LIABILITY INSURANCE.

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

As to the meaning of the term "applicant" in subsection (a)(1) of this section,
see § 27-602(a) of this subtitle.

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

SUBTITLE 7. UNAUTHORIZED INSURERS FALSE ADVERTISING PROCESS ACT.
27-701. "RESIDENT" DEFINED.

IN THIS SUBTITLE, "RESIDENT" INCLUDES A DOMESTIC, ALIEN, OR FOREIGN
PERSON, PARTNERSHIP, OR CORPORATION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 237(2).

Former Art. 48A, § 237(1), which defined "Unfair Trade Practice Act" to
mean [Art. 48A] §§ 212 through 234 relating to unfair methods of competition
and unfair and deceptive acts and practices in the business of insurance, is
deleted as unnecessary and misleading. Sections 212 through 234, as they
existed when former § 237 was enacted, are revised in Subtitles 1 and 2 of this
title. However, for purposes of the revision, the former reference to those
sections was too narrow. The entire law on unfair trade practices is
encompassed in this revised title. Therefore, references to "this title" are
substituted for the former references to the "Unfair Trade Practice Act"
throughout this subtitle. No substantive change is intended.

Defined term: "Person" § 1-101

27-702. PURPOSE OF SUBTITLE; ADDITIONAL POWER; LIBERAL CONSTRUCTION.

(A) PURPOSE OF SUBTITLE.

(1) THE GENERAL ASSEMBLY DECLARES THAT IT IS IN THE INTEREST
OF CITIZENS OF THE STATE WHO BUY INSURANCE FROM UNAUTHORIZED INSURERS
THAT SOLICIT BUSINESS IN THE STATE BY PLACING IN OR SENDING INTO THE STATE
FALSE ADVERTISING DESIGNED TO INDUCE RESIDENTS OF THE STATE TO BUY
INSURANCE FROM THEM, THAT THOSE UNAUTHORIZED INSURERS BE SUBJECT TO
THIS SUBTITLE.

(2) THE PURPOSE OF THIS SUBTITLE IS TO SUBJECT TO THE
JURISDICTION OF THE COMMISSIONER AND THE COURTS OF THE STATE THOSE
UNAUTHORIZED INSURERS DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION.

- 1256 -