(a) An applicant whose application for insurance has been rejected or a policyholder whose policy has been canceled for a reason other than nonpayment of premiums may appeal the decision to a special board within 10 days after receipt of notice of the rejection or cancellation.
(b) (1) The special board consists of two members of the Board of Trustees and the Commissioner or designee of the Commissioner.
(2) The Executive Director may not sit on the special board.
(c) (1) The special board:
(i) may affirm, reverse, or modify the decision on the record; or
(ii) on at least 10 days’ written notice to the applicant, may hold a hearing and then affirm, reverse, or modify the decision.
(2) The current policy of a policyholder who appeals the decision to the special board remains in effect until the special board decides the appeal.
(d) The Fund shall notify the Motor Vehicle Administration immediately after:
(1) the Fund cancels a policy or terminates coverage of an insured; or
(2) the Fund rejects an application for insurance and the action is final because:
(i) the rejection was not appealed to the special board; or
(ii) the special board does not reverse or modify the decision to cancel as to require issuance of a policy.
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