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Ch. 124
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PARRIS N. GLENDENING, Governor
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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, except in the case of a premium increase that is consistent with the
insurer's surcharge plan as filed with the Commissioner and authorized under the
applicable provisions of Title 11 of this article, 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.
(ii) The use of generalized terms such as "personal habits", "living
conditions", "poor morals", or "violation or accident record" does not meet the
requirements of this paragraph.
(C) AT LEAST 10 DAYS BEFORE THE DATE AN INSURER PROPOSES TO CANCEL
A POLICY FOR NONPAYMENT OF PREMIUM, THE INSURER SHALL CAUSE TO BE SENT
TO THE LAST KNOWN ADDRESS OF THE INSURED, BY CERTIFIED MAIL CERTIFICATE
OF MAILING, A WRITTEN NOTICE OF INTENTION TO CANCEL FOR NONPAYMENT OF
PREMIUM.
[(c)] (D) A statement of actual reason contained in the notice given under
subsection (b) of this section is privileged and does not constitute grounds for an
action against the insurer, its representatives, or another person that in good faith
provides to the insurer information on which the statement is based.
(E) (1) THIS SUBSECTION DOES NOT APPLY TO AN ACTION OF AN INSURER
TAKEN UNDER SUBSECTION (C) OF THIS SECTION.
[(d) (1)] (2) An insured may protest a proposed action of the insurer under
this section by signing two copies of the notice and sending them to the Commissioner
within 30 days after the mailing date of the notice.
[(2)] (3) On receipt of a protest, the Commissioner shall notify the
insurer of the filing of the protest.
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- 771 -
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