Sec. 14.07.02.03. Binding of Minimum Required Coverage

A. The fund producer binds the minimum coverages as may be required by the Transportation Article, Annotated Code of Maryland, when:

(1) The preliminary determination of eligibility under Regulation .02 of this chapter is completed;

(2) Questions on the application form provided by MAIF are fully answered;

(3) The applicant and fund producer have both signed and dated the application form in all appropriate places;

(4) The fund producer has obtained from the applicant the appropriate premium as provided in Regulation .04 of this chapter, and in the rules and rates manual of MAIF then in force and which is on file with the Insurance Commissioner;

(5) The fund producer:

(a) Has acknowledged receipt of premium payment by providing the applicant with a fully completed receipt approved by MAIF; and

(b) Maintains a copy of each receipt with each applicant's policy file; and

(6) Applicable procedures as may be required by the Insurance Commissioner have been complied with.

B. MAIF may require that certain coverage and policies by the fund producer be bound in person.

C. Electronic signatures will be considered valid only with MAIF's approval.

D. Coverage is not bound unless the fund producer complies with the provisions of §A of this regulation.

E. If an applicant has a valid Maryland operator's license, but no vehicle registered in Maryland, the applicant can be bound only as a non-owner operator.

F. Motor Vehicle Records.

(1) Before completing the application, the fund producer shall obtain Maryland Motor Vehicle records or MAIF Chargeability Reports for all:

(a) Named operators of the insured vehicle or vehicles; and

(b) Members of the insured's household 16 years old or older.

(2) Copies of each Motor Vehicle record or Chargeability Report shall be attached to all manually written applications.

(3) The fund producer shall provide the following information for any operator included in §F(1) of this regulation who is licensed by an agency other than the Maryland Motor Vehicle Administration:

(a) The name of the agency who issued the operator's license; and

(b) The operator's license number.

G. Each completed application shall be submitted to MAIF:

(1) Within 7 calendar days of binding; and

(2) Accompanied by the appropriate full annual premium less the commission due the fund producer, unless the fund producer has been required to submit premium on a gross basis pursuant to Regulation .07A or .09A(2) of this chapter.