§ 20-520. Refusal to issue policy prohibited

   (a) In general. -- Except as provided in subsection (b) of this section, an insurer that issues, sells, or delivers private passenger motor vehicle insurance in the State may not refuse to issue a policy of private passenger motor vehicle insurance to any person who, for the immediately preceding 3 continuous years:

   (1) has been insured by the Fund;

   (2) has not had a moving traffic violation; and

   (3) has not had a chargeable traffic accident.

(b) Exception. -- Subject to § 27-501 of this article, an insurer may refuse to issue a policy under subsection (a) of this section if the person does not satisfy the insurer's eligibility or underwriting standards.

(c) Effect of previous insurance by Fund. -- A person who is entitled to insurance under subsection (a) of this section:

   (1) shall be rated by the insurer in the same manner as any other policyholder not previously insured by the Fund having the same risk characteristics; and

   (2) may not be surcharged or rated by the insurer solely because the person was insured by the Fund.

(d) Fund to provide notice. --

   (1) At least 60 days before expiration or renewal of a policy of private passenger motor vehicle insurance, the Fund shall provide written notice to each person entitled to insurance under subsection (a) of this section.

   (2) The notice shall:

      (i) inform the person of the person's right to insurance under subsection (a) of this section;

      (ii) advise the person to contact the fund producer that bound the person's coverage with the Fund during the most recent coverage period;

      (iii) include a copy of a sample rate guide produced by the Administration; and

      (iv) provide the toll-free telephone number established under § 2-109 of this article.

HISTORY: 1997, ch. 57, § 1; 2001, ch. 731, § 1.