Home Table of Contents

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

West's Annotated Code of MarylandInsuranceEffective: January 1, 2007

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 20. Maryland Automobile Insurance Fund (Refs & Annos)
Subtitle 5. Policies for Covered Vehicles (Refs & Annos)
Effective: January 1, 2007
MD Code, Insurance, § 20-516
§ 20-516. Grounds for rejection or cancellation of insurance
In general
(a) 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.
Notification upon rejection or cancellation of policy
(b) The Fund shall notify the applicant or policyholder promptly after the Fund rejects an application or cancels a policy.
Persons ineligible to be insured by Fund
(c) 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.
Grounds for cancellation of policy
(d)(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.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 70, § 1, eff. Oct. 1, 1997; Acts 2004, c. 25, § 1, eff. April 13, 2004; Acts 2006, c. 44, § 5, eff. April 8, 2006.
Formerly Art. 48A, § 243D.
MD Code, Insurance, § 20-516, MD INSURANCE § 20-516
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document