Insurance 

(2)   This section does not apply to the Maryland Automobile Insurance Fund.

(b)    (1)   In accordance with this section, with respect to a policy of private passenger motor vehicle liability insurance or a binder of private passenger motor vehicle liability insurance, if the binder has been in effect for at least 45 days, issued in the State to any resident of the household of the named insured, an insurer may:

(i)   cancel or fail to renew the policy or binder; or

(ii)   reduce coverage under the policy.

(2)   Notwithstanding paragraph (1) of this subsection, the requirements of this section do not apply if:

(i)   the reduction in coverage described in paragraph (1)(ii) of this subsection is part of a general reduction in coverage approved by the Commissioner or satisfies the requirements of Title 19, Subtitle 5 of this article; or

(ii)   the failure to renew the policy takes place under a plan of withdrawal that:

1.   is approved by the Commissioner under § 27–606 of this subtitle; and

2.   provides that each insured affected by the plan of withdrawal shall be sent by certificate of mail at least 45 days before the nonrenewal of the policy a written notice that states the date that the policy will be nonrenewed and that the nonrenewal is the result of the withdrawal of the insurer from the market.

(3)   Notwithstanding paragraph (1) of this subsection, an insurer may not cancel a policy midterm except:

(i)   when there exists:

1.   a material misrepresentation or fraud in connection with the application, policy, or presentation of a claim;

2.   a matter or issue related to the risk that constitutes a threat to public safety; or

3.   a change in the condition of the risk that results in an increase in the hazard insured against;

(ii)   for nonpayment of premium; or

(iii)   due to the revocation or suspension of the driver’s license or motor vehicle registration:

1.   of the named insured or covered driver under the policy; and

2.   for reasons related to the driving record of the named insured or covered driver.

(c)    (1)   At least 45 days before the proposed effective date of the action, an insurer that intends to take an action subject to this section shall send written notice of its proposed action to the insured at the last known address of the insured:

(i)   for notice of cancellation or nonrenewal, by certified mail; and

(ii)   for all other notices of actions subject to this section, by certificate of mail.

(2)   The notice must be in triplicate and on a form approved by the Commissioner.

(3)   The notice must state in clear and specific terms:

(i)   the proposed action to be taken, including for a reduction in coverage, the type of coverage reduced and the extent of the reduction;