§ 20-516. Grounds for rejection or cancellation of insurance

   (a) In general. -- Subject to § 20-517 of this subtitle, the Fund:

   (1) may reject an application of insurance if the applicant owes to the Fund an unpaid premium on an expired or canceled policy;

   (2) at any time may cancel a policy for nonpayment of premiums; or

   (3) may reject an application of insurance or at any time may cancel a policy if it is found that the driver's license of the applicant or policyholder is:

      (i) suspended, unless the suspension is for a first offense under § 16-205.1 of the Transportation Article for driving with an alcohol concentration of 0.08 or more; or

      (ii) revoked.

(b) Prompt notice required. -- The Fund shall notify the applicant or policyholder promptly after the Fund rejects an application or cancels a policy.

(c) Excluded driver endorsement. -- If a person does not have a valid license or other privilege to drive a covered vehicle in the State, or is otherwise ineligible to be insured by the Fund, the Fund may issue the appropriate policy with an excluded driver endorsement under § 27-609 of this article.

(d) Expiration of temporary registration. --

   (1) The Fund may cancel a policy if:

      (i) the temporary registration issued for the covered vehicle under § 13-405 or § 23-107(b) of the Transportation Article has expired; and

      (ii) the covered vehicle is not otherwise validly registered in the State.

   (2) The cancellation may not take effect until the day after the temporary registration of the covered vehicle expires.

HISTORY: An. Code 1957, art. 48A, § 243D; 1996, ch. 11; 1997, ch. 70, § 1; 2004, ch. 25; 2006, ch. 44, § 5.