Md. Code, Insurance, Title 11

in effect

Md. Code, Insurance § 11-101

(a) In this title the following words have the meanings indicated. (b) “Advisory organization” means a group, association, or other organization of insurers, located within or outside the State, that helps insurers that make their own filings or rating organizations in rate making, by collecting and providing loss or expense statistics or by submitting recommendations, but that does not make filings under this title. (c) “Rate” means rate of premium, policy or membership fee, or another charge made by an insurer for or in connection with an insurance contract or policy. (d) “Rating organization” means a person licensed under § 11-218 of this title. (e) “Supplementary rate information” includes a manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, policy fee, rating rule, rate-related underwriting rule, minimum rate, class rate, rating plan, manual or schedule of rates or premiums, rule or regulation that governs the setting or making of rates or premiums, and any other information, not otherwise inconsistent with the purposes of this title, that the Commissioner requires by regulation. (f) “Working day” means a day when the Administration is open for business.

Md. Code, Insurance § 11-201

(a) The purposes of this subtitle are: (1) to promote the public welfare by regulating insurance rates so that they are not excessive, inadequate, or unfairly discriminatory; and (2) to authorize and regulate cooperative action among insurers in rate making and in other matters within the scope of this subtitle. (b) This subtitle is not intended: (1) to prohibit or discourage reasonable competition; or (2) to prohibit or, except to the extent necessary to accomplish the purposes stated in subsection (a) of this section, to encourage uniformity in insurance rates, rating systems, rating plans, or rating practices. (c) This subtitle shall be interpreted liberally to carry out the provisions of this section.

Md. Code, Insurance § 11-202

(a) (1) This subtitle applies to all types of insurers. (2) Except as provided in subsection (b) of this section, this subtitle applies to: (i) property insurance; (ii) casualty insurance; (iii) surety insurance; (iv) marine insurance; and (v) wet marine and transportation insurance. (b) This subtitle does not apply to: (1) reinsurance, except as provided in § 11–222 of this subtitle; (2) insurance of vessels or craft or their cargoes, marine protection and indemnity insurance, or insurance of other risks commonly insured under policies of marine insurance, as distinguished from inland marine insurance; (3) insurance against loss of or damage to aircraft including their accessories and equipment, or insurance against liability, other than workers’ compensation insurance or employer’s liability insurance, arising out of the ownership, maintenance, or use of aircraft; or (4) title insurance, except for §§ 11–218 through 11–227 of this subtitle. (c) If a kind of insurance, subdivision or combination of kinds of insurance, or type of coverage is subject to this subtitle and is also subject to regulation by another rate regulatory provision of the statutes of the State, an insurer to which both provisions are otherwise applicable shall file with the Commissioner a designation as to which rate regulatory provision is applicable to it with respect to that kind of insurance, subdivision or combination of kinds of insurance, or type of coverage.

Md. Code, Insurance § 11-205

(a) All rates shall be made in accordance with the principles set forth in this section. (b) Uniformity among insurers in matters within the scope of this subtitle is neither required nor prohibited. (c) Due consideration shall be given to: (1) past and prospective loss experience within and outside the State; (2) conflagration and catastrophe hazards, if any; (3) past and prospective expenses, both countrywide and those specially applicable to the State; (4) underwriting profits; (5) contingencies; (6) investment income from unearned premium reserve and reserve for losses; (7) dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to policyholders; and (8) all other relevant factors within and outside the State. (d) Rates may not be excessive, inadequate, or unfairly discriminatory. (e) The systems of expense provisions included in the rates for use by an insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of the insurer or group with respect to a kind of insurance, or with respect to a subdivision or combination of kinds of insurance for which separate expense provisions are applicable. (f) (1) Risks may be grouped by classifications for the establishment of rates and minimum premiums. (2) Classification rates may be modified to produce rates for individual risks in accordance with rating plans that establish standards for measuring variations in hazards or expense provisions, or both. (3) The standards may measure any difference among risks that are demonstrated objectively to the Commissioner to have had a direct and substantial effect on losses or expenses. (4) Notwithstanding any other provision of this subsection, a rate may not be based wholly or partly on geographic area itself, as opposed to underlying risk considerations, even though expressed in geographic terms. (g) For fire insurance rates, consideration shall be given to experience during a period of not less than the most recent 5-year period for which experience is available.

Md. Code, Insurance § 11-206

(a) (1) Except as otherwise provided in this section, each insurer shall file with the Commissioner all rates, supplementary rate information, policy forms, and endorsements and all modifications of rates, supplementary rate information, policy forms, and endorsements that the insurer proposes to use. (2) Each filing shall state its proposed effective date and shall indicate the character and extent of the coverage contemplated. (b) (1) (i) If a filing is not accompanied by the information on which the insurer supports the filing and the Commissioner does not have sufficient information to determine whether the filing meets the requirements of this subtitle, the Commissioner shall require the insurer to provide supporting information for the filing within 60 days. (ii) If the Commissioner requires the filer to provide supporting information, the waiting period under subsection (g) of this section begins on the date the supporting information is provided. (2) The information provided in support of a filing may include: (i) the judgment of the filer; (ii) the filer’s interpretation of any statistical data relied on; (iii) the experience of other filers; and (iv) any other relevant factors. (c) Each filing shall include the experience of the filer. (d) A filing and any supporting information shall be open to public inspection as soon as filed. (e) An insurer may satisfy its obligation to make filings by: (1) being a member of or subscriber to a licensed rating organization that makes filings; and (2) authorizing the Commissioner to accept filings on its behalf from the rating organization. (f) The Commissioner shall review each filing as soon as reasonably possible after it is made to determine whether it meets the requirements of this subtitle. (g) (1) (i) Except as provided in subsections (h) and (i) of this section, a filing may not take effect until 30 working days after it is filed with the Commissioner. (ii) By written notice to the filer during the initial 30–day waiting period that the Commissioner needs additional time for consideration of the filing, the Commissioner may extend the waiting period for an additional period not exceeding 30 working days. (2) On written application by the filer, the Commissioner may authorize a filing that the Commissioner has reviewed to become effective before the expiration of the waiting period or any extension of the waiting period or at a later date. (3) A filing is deemed approved unless disapproved by the Commissioner during the waiting period or any extension of the waiting period. (4) A filing may be withdrawn or amended by the filer at any time before approval. (5) After approval or disapproval of a filing, the withdrawal or amendment of the filing is subject to the approval of the Commissioner in accordance with this section. (h) (1) Inland marine risks that by general custom of the business are not written according to manual rates or rating plans need not be filed. (2) Notwithstanding paragraph (1) of this subsection, specific inland marine rates on risks specially rated by a rating organization shall be filed, become effective when filed, and remain effective until the Commissioner finds the filing does not meet the requirements of this subtitle. (i) A special filing with respect to a surety or guarantee bond required by law, by court, by executive order, or by order, rule, or regulation of a public body, not covered by a previous filing shall become effective when filed and remain effective until the Commissioner finds that the filing does not meet the requirements of this subtitle. (j) (1) In this subsection, “exempt commercial policyholder” means a person that: (i) pays annual aggregate property and casualty premiums for commercial insurance policies issued in the State during the current or preceding calendar year of $25,000 or more; and (ii) meets any two of the following criteria: 1. generates annual revenues or sales in excess of $5,000,000; 2. possesses a net worth in excess of $2,500,000; 3. employs at least 25 full–time employees; 4. is a nonprofit organization or public body with an annual budget of at least $5,000,000; or 5. is a municipal corporation with a population of at least 15,000. (2) The filing requirements of this section do not apply to rates, supplementary rate information, policy forms, and endorsements and to modifications of rates, supplementary rate information, policy forms, and endorsements issued to an exempt commercial policyholder. (3) (i) An exempt commercial policyholder must certify in writing, on a form approved by the Commissioner, to the insurer issuing coverage that it meets the criteria necessary for exemption from rate and form filing requirements. (ii) The certification must include: 1. specific reference to the optional criteria that the insured has satisfied to qualify as an exempt commercial policyholder; 2. information required by the Commissioner for the purpose of determining the annual aggregate premiums of the insured for purposes of paragraph (1)(i) of this subsection; and 3. an acknowledgment by the insured that the rate, supplementary rate information, policy form, endorsement, or modification intended for use has not been filed with the Commissioner. (4) This subsection does not apply to the filing of workers’ compensation insurance rate and policy forms. (5) The Commissioner may require, by regulation, that insurers provide information to the Administration on the number and types of policies written for exempt commercial policyholders under this subsection. (6) On written request of the Commissioner, an insurer shall file with the Commissioner a form or endorsement issued to an exempt commercial policyholder. (7) Except for the exemption from rate and form filing requirements under this section, a rate, supplementary rate information, form, or endorsement issued to an exempt commercial policyholder is subject to all applicable provisions of this article.

Md. Code, Insurance § 11-207

(a) (1) By written order, the Commissioner may suspend or modify the filing requirement for a kind of insurance, subdivision or combination of kinds of insurance, or for classes of risks, for which it is not practicable to file rates before they are used. (2) The Commissioner shall adopt regulations for the suspension or modification of filing requirements. (b) A regulation adopted or order issued under this section shall be made known to the insurers and rating organizations affected by the regulation or order. (c) The Commissioner may make any examination that the Commissioner considers advisable to determine if the rates affected by an order issued under this section meet the standards set forth in § 11-205 of this subtitle.

Md. Code, Insurance § 11-208

(a) Unless the filer demonstrates that a proposed rate is not excessive, inadequate, or unfairly discriminatory, the Commissioner may disapprove the filing. (b) (1) If, during the waiting period or any extension of the waiting period provided under § 11-206(g) of this subtitle, the Commissioner finds that a filing does not meet the requirements of this subtitle, the Commissioner shall send written notice of disapproval to the filer. (2) The notice of disapproval shall specify the ways in which the filing fails to meet the requirements of this subtitle and shall state that the filing may not become effective. (c) (1) If, within 30 days after a filing made under § 11-206(h) or (i) of this subtitle, the Commissioner finds that the filing does not meet the requirements of this subtitle, the Commissioner shall send written notice of disapproval to the filer. (2) The notice of disapproval shall specify the ways in which the filing fails to meet the requirements of this subtitle and shall state when, within a reasonable period after the notice, the filing will no longer be effective. (3) Disapproval under this subsection does not affect a contract made or issued before the expiration of the period set forth in the notice. (d) (1) If, after the applicable review period under subsection (b) or (c) of this section, the Commissioner finds that a filing does not meet the requirements of this subtitle, the Commissioner shall issue to the filer an order that specifies the ways in which the filing fails to meet the requirements of this subtitle and states when, within a reasonable period after the order, the filing will no longer be effective. (2) (i) The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection. (ii) The Commissioner shall give written notice of the hearing to the filer at least 10 days before the hearing. (iii) The notice shall specify the matters to be considered at the hearing. (3) An order issued under this subsection does not affect a contract or policy made or issued before the expiration of the period set forth in the order. (e) (1) Except for the filer, any person aggrieved with respect to a filing that is in effect or that has been filed but is not yet effective may apply in writing to the Commissioner for a hearing on the filing. (2) An application under this subsection shall specify the grounds on which the applicant will rely. (3) If the Commissioner finds that the application is made in good faith, that the applicant would be aggrieved if the specified grounds are established, and that the grounds otherwise justify a hearing, the Commissioner shall hold a hearing within 30 days after receipt of the application. (4) The Commissioner shall give written notice of the hearing to the applicant and each filer at least 10 days before the hearing. (5) If, after the hearing, the Commissioner finds that the filing does not meet the requirements of this subtitle, the Commissioner shall issue to the filer an order that specifies the ways in which the filing fails to meet the requirements of this subtitle and states when, within a reasonable period after the order, the filing will no longer be effective. (6) The Commissioner shall send a copy of an order issued under this subsection to the applicant. (7) An order issued under this subsection does not affect a contract or policy made or issued before the expiration of the period set forth in the order.

Md. Code, Insurance § 11-209

(a) (1) Notwithstanding any other provision of this subtitle, an insurer may reduce its rates previously approved by the Commissioner by filing the reduced rates with the Commissioner within 30 days after the reduced rates become effective. (2) An insurer that has reduced its rates in accordance with paragraph (1) of this subsection may withdraw the reduction wholly or partly by filing revised rates at a level not higher than the level approved by the Commissioner before the reduction within 30 days after they become effective. (b) If, after notice and a hearing, the Commissioner finds that the rates produced are in violation of this subtitle, the Commissioner may revoke a reduction of rates made in accordance with this section.

Md. Code, Insurance § 11-210

On written application of the insured that states its reasons for requesting the rate, filed with and approved by the Commissioner, a rate in excess of that provided by a filing otherwise applicable may be used on a specific risk.

Md. Code, Insurance § 11-211

(a) Within a reasonable time after a filer receives a written request for information about a filing and on payment of a reasonable charge, the filer shall provide all pertinent information about the filing to an insured affected by the filing or the authorized representative of the insured. (b) At the time of filing a proposed rate increase with the Commissioner, an insurer that provides professional liability insurance to a physician or other health care provider shall notify each policyholder in writing that: (1) the insurer has filed a proposed rate increase with the Commissioner; (2) a hearing may be requested with respect to the filing under § 11-208(e) of this subtitle; and (3) an order, hearing, or refusal of a hearing by the Commissioner may be appealed under Subtitle 5 of this title.

Md. Code, Insurance § 11-212

(a) Each filer shall provide reasonable means within the State by which a person aggrieved by the application of its rating system may be heard in person or by an authorized representative on the person’s written request to review the manner in which the rating system has been applied in connection with the insurance afforded the aggrieved person. (b) If the filer fails to grant or reject the aggrieved person’s request within 30 days after it is made, the applicant may proceed as if the application had been rejected. (c) Within 30 days after written notice of the action of a filer on a request for review, any person affected by the action may appeal to the Commissioner. (d) (1) The Commissioner shall hold a hearing on the action of the filer. (2) The Commissioner shall give written notice of the hearing to the appellant and filer at least 10 days before the hearing. (3) After the hearing, the Commissioner may affirm or reverse the action.

Md. Code, Insurance § 11-213

(a) All homeowner’s insurance rates shall be made in accordance with the principles set forth in this section. (b) (1) An insurer under a homeowner’s insurance policy may not classify or maintain an insured for a period longer than 3 years in a classification that entails a higher premium because of a specific claim. (2) For the purpose of determining whether to classify an insured in a classification that entails a higher premium, an insurer may review only a period not greater than 3 years before: (i) if the policy has not yet been issued: 1. the date of the application; or 2. the proposed effective date of the policy; or (ii) on renewal of a policy, the effective date of the renewal. (3) (i) The removal of, reduction of, or refusal to apply a discount is not a violation of this subsection if the claim resulting in the removal of, reduction of, or refusal to apply the discount was filed not more than 5 years before the removal, reduction, or refusal. (ii) Subparagraph (i) of this paragraph may not be construed to prevent an insurer from granting a claim–free discount to an insured.

Md. Code, Insurance § 11-214

(a) Each insurer that provides a private passenger automobile insurance policy shall provide to the policyholder at the time of issuance or renewal of the policy a statement that: (1) defines the policyholder’s rate classifications; and (2) if the insurer is an authorized insurer, includes a summary, in a form approved by the Commissioner, of the insurer’s approved surcharge plan or driver record point plan for that policy. (b) The statement must be sufficiently clear and specific so that an individual of average intelligence can identify the classifications without making further inquiry.

Md. Code, Insurance § 11-215

(a) All automobile insurance rates shall be made in accordance with the principles set forth in this section. (b) (1) An insurer under an automobile liability insurance policy may not classify or maintain an insured for a period longer than 3 years in a classification that entails a higher premium: (i) because of a specific claim; or (ii) because of the insured’s driving record. (2) For the purpose of determining whether to classify an insured in a classification that entails a higher premium, an insurer may review only a period not greater than 3 years before: (i) if the policy has not yet been issued: 1. the date of the application; or 2. the proposed effective date of the policy; or (ii) on renewal of a policy, the effective date of the renewal. (3) (i) The removal of a discount is not a violation of this subsection. (ii) Subparagraph (i) of this paragraph may not be construed to prevent an insurer from granting a claim–free discount to an insured. (c) An insurer’s automobile and physical damage insurance premiums shall reflect the reduction in claims, if any, attributable to the requirement that drivers under the age of 18 years must acquire a provisional driver’s license before acquiring a driver’s license. (d) For purposes of reclassifying an insured in a classification that entails a higher premium, an insurer under an automobile insurance policy may not consider accident reports and abstracts of court convictions that relate to driving an emergency vehicle and that are on record with the Motor Vehicle Administration, as provided in § 16–117(b) of the Transportation Article. (e) For purposes of reclassifying an insured in a classification that entails a higher premium, an insurer under an automobile insurance policy may not consider a probation before judgment disposition of a motor vehicle law offense, a civil penalty imposed pursuant to § 21–202.1, § 21–809, § 21–810, or § 24–111.3 of the Transportation Article, or a first offense of driving with an alcohol concentration of 0.08 or more under § 16–205.1 of the Transportation Article on record with the Motor Vehicle Administration, as provided in § 16–117(b) of the Transportation Article. (f) If the insured under an automobile insurance policy notifies the insurer of a change in circumstances that justifies reclassifying the insured in a different classification or territory, the insurer shall adjust the premium charged the insured from the date of notification. (g) For motor vehicle personal injury and property damage coverage, an insurer may provide a reduction in rates based on actuarial justification to an insured who: (1) is at least 55 years old; and (2) within the last 2 years, has completed successfully a course in accident prevention: (i) that is approved by the Motor Vehicle Administration; (ii) that includes classroom instruction or practice driving of the number of hours that the Motor Vehicle Administration requires; and (iii) for which the insured has received a certificate that certifies the completion of the course.

Md. Code, Insurance § 11-216

An insurer that uses territory as a factor in establishing automobile insurance rates shall submit a statement to the Commissioner certifying that: (1) the territories used by the insurer have been reviewed within the previous 3 years; and (2) use of the territories is actuarially justified.

Md. Code, Insurance § 11-218

(a) (1) Any person, whether located within or outside the State, may apply to the Commissioner for a license as a rating organization for a kind of insurance, subdivision of kinds of insurance, or class of risk or part or combination of kinds of insurance or classes of risk, as specified in its application. (2) An applicant for a license as a rating organization shall file with its application: (i) a copy of its constitution, articles of agreement or association, or certificate of incorporation and its bylaws, rules, and regulations that govern the conduct of its business; (ii) a list of its members and subscribers; (iii) the name and address of a resident of the State on whom may be served notices or orders of the Commissioner or process that affects the rating organization; and (iv) a statement of its qualifications as a rating organization. (3) Within 60 days after an application is filed, the Commissioner shall grant or deny the application wholly or partly. (4) The Commissioner shall grant the application if the Commissioner finds that: (i) the applicant is competent, trustworthy, and otherwise qualified to act as a rating organization; and (ii) its constitution, articles of agreement or association, or certificate of incorporation, and its bylaws, rules, and regulations that govern the conduct of its business conform to the requirements of law. (5) A license as a rating organization issued under this section expires 3 years after its effective date. (6) The fee for a license as a rating organization is $25. (7) If a rating organization ceases to meet the requirements of this subsection, the Commissioner, after notice and a hearing, may suspend or revoke its license. (8) A rating organization shall notify the Commissioner promptly of any change in the information and documents provided to the Commissioner under paragraph (2) of this subsection. (b) (1) Subject to rules adopted by the rating organization that the Commissioner has approved as reasonable, each rating organization shall allow an insurer that is not a member to be a subscriber to its rating services for a kind of insurance, subdivision of kinds of insurance, or class of risk or part or combination of kinds of insurance or classes of risk for which it is authorized to act as a rating organization. (2) Each rating organization shall give notice to subscribers of proposed changes in its rules. (3) Each rating organization shall provide its rating services without discrimination to its members and subscribers. (4) (i) 1. At the request of a subscriber or an insurer that has been refused admission as a subscriber to a rating organization, the Commissioner shall review the reasonableness of the application of a rule to subscribers or the refusal of the rating organization to admit the insurer as a subscriber. 2. If a rating organization fails to grant or reject the application of an insurer for admission as a subscriber within 30 days after the application was made, the insurer may request a review of the action by the Commissioner as if the application had been rejected. (ii) 1. The Commissioner shall review the challenged rule or action of the rating organization at a hearing. 2. The Commissioner shall give written notice of the hearing to the rating organization and subscriber or insurer at least 10 days before the hearing. (iii) If the Commissioner finds that the challenged rule is unreasonable in its application to subscribers, the Commissioner shall issue an order that the rule is not applicable to subscribers. (iv) 1. If the Commissioner finds that an insurer has been refused admission as a subscriber to the rating organization without justification, the Commissioner shall issue an order that requires the rating organization to admit the insurer as a subscriber. 2. If the Commissioner finds that the action of the rating organization in refusing admission as a subscriber was justified, the Commissioner shall issue an order that affirms the action of the rating organization. (c) A rating organization may not adopt a rule the effect of which would be to prohibit or regulate the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers. (d) (1) Cooperation among rating organizations or among rating organizations and insurers in rate making or in other matters within the scope of this subtitle is authorized, if the filings that result from the cooperation are subject to all provisions of this subtitle that are applicable to filings generally. (2) (i) The Commissioner may review cooperative activities and practices among rating organizations and among rating organizations and insurers. (ii) If, after a hearing, the Commissioner finds that an activity or practice is unfair, unreasonable, or otherwise inconsistent with this subtitle, the Commissioner may issue an order that requires that the activity or practice be discontinued. (e) (1) A rating organization may provide for the examination of policies, daily reports, binders, renewal certificates, endorsements, or other evidence of insurance or the cancellation of insurance and may make reasonable rules that govern their submission. (2) Rules adopted under this subsection shall require that: (i) within 60 days after a rating organization has notified an insurer of an error or omission, the insurer shall provide to the rating organization satisfactory evidence of the correction of the error or omission; and (ii) the rating organization shall notify the Commissioner if an insurer fails to provide satisfactory evidence of the correction of the error or omission. (3) All information submitted for examination under this subsection is confidential. (f) (1) A rating organization may subscribe to or purchase actuarial, technical, or other services. (2) The services shall be available to all members and subscribers without discrimination. (g) (1) An association or other entity that has been organized by regulation or law to provide insurance not available through the voluntary market shall apply to the Commissioner for permission to file rates to be used by the entity. (2) If the Commissioner finds that allowing the entity to file rates will be in the public interest, then the Commissioner shall treat a filing made by the entity like a filing made by a rating organization.

Md. Code, Insurance § 11-219

(a) An insurer may deviate from the rates filed by a rating organization if: (1) the insurer has filed the deviation to be applied with the rating organization and Commissioner; (2) the deviation is uniform in its application to all risks in the State of the class of insurance to which the deviation is to apply; and (3) the deviation is approved by the Commissioner. (b) The Commissioner may approve or disapprove a deviation as if the deviation filing were a rate filing and specify the period of time during which an approval will be effective.

Md. Code, Insurance § 11-220

(a) (1) A member of or subscriber to a rating organization may appeal to the Commissioner from the action or decision of the rating organization in approving or rejecting a proposed change in or addition to the filings of the rating organization. (2) The Commissioner: (i) shall issue an order that approves the action or decision of the rating organization or directs it to give further consideration to the proposal; or (ii) if the appeal is from the action or decision of the rating organization in rejecting a proposed addition to its filings and the Commissioner finds that the action or decision was unreasonable, may issue an order that directs the rating organization to make, within a reasonable time after issuance of the order, an addition to its filings on behalf of its members and subscribers in a manner consistent with the Commissioner’s findings. (3) The Commissioner shall hold a hearing before issuing an order under paragraph (2) of this subsection. (4) The Commissioner shall give written notice of the hearing to the appellant and rating organization at least 10 days before the hearing. (b) (1) If the appeal is based on the failure of a rating organization to make a filing on behalf of the member or subscriber that is based on a system of expense provisions that differs from the system of expense provisions included in a filing made by the rating organization, as authorized under § 11-205(e) of this subtitle, and the Commissioner grants the appeal, the Commissioner shall issue an order that requires the rating organization to make the requested filing for use by the appellant. (2) In deciding the appeal, the Commissioner shall apply the standards set forth in this subtitle.

Md. Code, Insurance § 11-221

(a) Each advisory organization shall file with the Commissioner: (1) a copy of its constitution, articles of agreement or association, or certificate of incorporation and its bylaws, rules, and regulations that govern its activities; (2) a list of its members; (3) the name and address of a resident of the State on whom may be served notices or orders of the Commissioner or process issued at the direction of the Commissioner; and (4) an agreement that the Commissioner may examine the advisory organization in accordance with § 11-225 of this subtitle. (b) If, after a hearing, the Commissioner finds that the provision of information or help by an advisory organization involves an act or practice that is unfair, unreasonable, or otherwise inconsistent with this subtitle, the Commissioner may issue a written order that specifies the ways in which the act or practice is unfair, unreasonable, or otherwise inconsistent with this subtitle and requires that the act or practice be discontinued. (c) (1) An insurer that makes its own filings or a rating organization may not support its filings by statistics or adopt rate making recommendations provided to it by an advisory organization that has failed to comply with: (i) this section; or (ii) an order of the Commissioner issued under subsection (b) of this section that involves the statistics or recommendations. (2) If the Commissioner finds that an insurer or rating organization has violated this subsection, the Commissioner may issue an order that requires that the violation be discontinued.

Md. Code, Insurance § 11-222

(a) Each group, association, or other organization of insurers that engages in joint underwriting or joint reinsurance is subject to this subtitle with respect to its joint underwriting or joint reinsurance activities. (b) If, after a hearing, the Commissioner finds that an activity or practice of a group, association, or other organization that engages in joint underwriting or joint reinsurance is unfair, unreasonable, or otherwise inconsistent with this subtitle, the Commissioner may issue a written order that specifies the ways in which the activity or practice is unreasonable, unfair, or otherwise inconsistent with this subtitle and requires that the activity or practice be discontinued.

Md. Code, Insurance § 11-225

(a) (1) At least once every 5 years, the Commissioner shall make an examination of each rating organization licensed in the State. (2) Whenever the Commissioner considers it expedient, the Commissioner may make an examination of each advisory organization and each group, association, or other organization that engages in joint underwriting or joint reinsurance. (b) The entity examined shall pay the reasonable costs of an examination on presentation to it of a detailed account of the costs. (c) The officers, manager, agents, and employees of the entity examined may be examined at any time under oath and shall exhibit all books, records, accounts, documents, or agreements that govern the entity’s methods of operation. (d) Instead of making an examination under this section, the Commissioner may accept the report of an examination made by the insurance supervisory official of another state under the laws of that state.

Md. Code, Insurance § 11-226

(a) (1) (i) So that the experience of all insurers may be made available at least annually in the form and detail necessary to help the Commissioner in determining whether rating systems comply with the standards set forth in this subtitle, the Commissioner shall adopt reasonable rules and statistical plans that are reasonably adapted to each of the rating systems on file with the Commissioner for the recording and reporting of loss and expense experience. (ii) The Commissioner periodically may modify the rules and plans adopted under this subsection. (iii) Each insurer shall use the rules and plans adopted by the Commissioner to record and report its loss and countrywide expense experience. (2) The rules and plans adopted under this subsection may also provide for the recording and reporting of expense experience items that are specially applicable to the State and are not susceptible of determination by prorating countrywide expense experience. (3) In adopting the rules and plans, the Commissioner shall give due consideration: (i) to the rating systems on file with the Commissioner; and (ii) to the rules and to the form of the plans used for the rating systems in other states, so that the rules and plans may be as uniform as is practicable among states. (4) An insurer may not be required to record or report its loss experience on a classification basis that is inconsistent with the rating system filed by it. (5) (i) The Commissioner may designate one or more rating organizations or other agencies to help in gathering and compiling experience information. (ii) Subject to reasonable regulations adopted by the Commissioner, the compilations shall be made available to insurers and rating organizations. (b) The Commissioner may adopt reasonable rules and plans for the interchange of data necessary for the application of rating plans. (c) To further uniform administration of rate regulatory laws, the Commissioner and each insurer and rating organization may: (1) exchange information and experience data with each other and with insurance supervisory officials, insurers, and rating organizations in other states; and (2) consult with them about rate making and the application of rating systems.

Md. Code, Insurance § 11-227

The Commissioner may adopt reasonable rules and regulations necessary to carry out the purposes of this subtitle.

Md. Code, Insurance § 11-230

(a) An insurer or officer, insurance producer, or representative of an insurer may not knowingly issue or deliver or knowingly allow the issuance or delivery of a policy or endorsement, certificate, or addition to the policy, except in accordance with the filings that are in effect for the insurer as provided in this subtitle. (b) An insurer may pay or allow a commission to a licensed insurance producer of the insurer as compensation for procuring business.

Md. Code, Insurance § 11-231

A person may not willfully withhold information from or knowingly give false or misleading information to the Commissioner, a statistical agency designated by the Commissioner, a rating organization, or an insurer if the information will affect the rates or premiums chargeable under this subtitle or the proper issuance of an insurance contract, policy, or guarantee of insurance.

Md. Code, Insurance § 11-232

(a) (1) If the Commissioner finds that a person has violated a provision of this subtitle, the Commissioner may impose a civil penalty not exceeding $250 for each violation. (2) If the Commissioner finds a violation of this subtitle to be willful, the Commissioner may impose a civil penalty not exceeding $1,000 for the violation. (3) A penalty imposed under this subsection is in addition to any other penalty provided by law. (b) (1) The Commissioner may suspend the license of a rating organization or certificate of authority of an insurer that fails to comply with an order of the Commissioner within the time set by the order or any extension of that time granted by the Commissioner. (2) The Commissioner may not suspend the license of a rating organization or certificate of authority of an insurer for failure to comply with an order: (i) until the time set for an appeal from the order has expired; or (ii) if an appeal has been taken, until the order has been affirmed. (3) The Commissioner may determine when the suspension of a license or certificate of authority becomes effective. (4) The suspension shall remain in effect for the period set by the Commissioner unless the Commissioner modifies or rescinds the suspension or until the order on which the suspension is based is modified, rescinded, or reversed. (c) (1) Before the Commissioner imposes a penalty or suspends or revokes a license or certificate of authority under this subtitle, the Commissioner shall issue a written order that states the findings of the Commissioner. (2) The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection. (3) The Commissioner shall give written notice of the hearing at least 10 days before the hearing. (4) The notice shall specify the alleged violation.

Md. Code, Insurance § 11-301

(a) In this subtitle the following words have the meanings indicated. (b) “Competitive market” means any market except those which, by application of the standards in § 11-306 of this subtitle, have been determined to be noncompetitive under § 11-308(c) of this subtitle. (c) “Market” means the interaction between buyers and sellers of a particular line of insurance in a geographical area consisting of not less than one entire county.

Md. Code, Insurance § 11-302

(a) The purposes of this subtitle are: (1) to protect policyholders and the public against the adverse effect of excessive, inadequate, or unfairly discriminatory rates; (2) as the most effective way to produce rates that conform to the standards of paragraph (1) of this subsection, to encourage independent action by insurers and reasonable price competition among insurers; (3) to provide formal regulatory controls for use if price competition fails; (4) to authorize cooperative action among insurers in the rate making process and to regulate that cooperation in order to prevent practices that tend to bring about monopoly or to lessen or destroy competition; and (5) to provide rates that are responsive to competitive market conditions and to improve the availability of insurance in the State. (b) This subtitle shall be construed liberally to achieve the purposes stated in subsection (a) of this section, which shall constitute an aid and guide to interpretation of this subtitle but not an independent source of power.

Md. Code, Insurance § 11-303

(a) Notwithstanding Subtitle 2 of this title, this subtitle applies to the establishment of rates for all types of insurance except: (1) life insurance; (2) annuities; (3) health insurance; (4) marine insurance described in § 11–202(b)(2) of this title; (5) aircraft insurance described in § 11–202(b)(3) of this title; (6) reinsurance; (7) title insurance; (8) medical malpractice insurance; (9) any form or plan of insurance regulated under § 27–217 of this article; and (10) surety insurance. (b) If and to the extent that the Commissioner finds that the application of any or all of the provisions of this subtitle is unnecessary to achieve the purposes of this subtitle, the Commissioner by rule may exempt a person or class of persons or a line or lines of insurance from any or all of those provisions.

Md. Code, Insurance § 11-306

(a) The standards set forth in this section apply to the making and use of rates under this subtitle. (b) (1) Rates may not be: (i) excessive or inadequate, as defined under this subtitle; or (ii) unfairly discriminatory. (2) Except as provided in paragraph (4) of this subsection, a rate may not be held to be excessive unless: (i) the rate is unreasonably high for the insurance provided; and (ii) the Commissioner has issued a ruling under § 11-308(c) of this subtitle that a reasonable degree of competition does not exist in a market to which the rate is applicable. (3) A rate may not be held to be inadequate unless: (i) the rate is unreasonably low for the insurance provided and continued use of the rate would endanger the solvency of the insurer; or (ii) the rate is unreasonably low for the insurance provided and the use of the rate by the insurer has had, or if continued will have, the effect of destroying competition or of creating monopoly. (4) For personal lines property insurance and casualty insurance, the Commissioner may hold a statewide rate or a rate in a particular jurisdiction or geographic territory to be excessive without determining whether a reasonable degree of competition exists under § 11-308(c) of this subtitle if the Commissioner determines that the rate: (i) is unreasonably high for the insurance provided; and (ii) is not actuarially justified based on commonly accepted actuarial principles. (5) If the Commissioner determines that a rate is excessive under paragraph (4) of this subsection and disapproves the rate, the disapproval is subject to § 11-308(c)(4), (d), and (e) of this subtitle. (c) In determining whether rates comply with the standards set forth in subsection (b) of this section, due consideration shall be given to: (1) past and prospective loss experience within and outside the State; (2) conflagration or catastrophe hazards; (3) a reasonable margin for underwriting profit and contingencies; (4) dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers; (5) past and prospective expenses, both countrywide and those specially applicable to the State; (6) investment income earned or realized by insurers both from their unearned premium and from their loss reserve funds; and (7) all relevant factors within and outside the State. (d) The systems of expense provisions included in the rates for use by an insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of the insurer or group of insurers with respect to a kind of insurance, or with respect to a subdivision or combination of insurance for which separate expense provisions are applicable. (e) (1) Risks may be grouped by classifications for the establishment of rates and minimum premiums. (2) Classification rates may be modified to produce rates for individual risks in accordance with rating plans that establish standards for measuring variations in hazards or expense provisions, or both. (3) The standards may measure any difference among risks that have had a direct and substantial effect on losses or expenses. (4) Notwithstanding any other provision of this subsection, a rate may not be based wholly or partly on geographic area itself, as opposed to underlying risk considerations, even though expressed in geographic terms.

Md. Code, Insurance § 11-307

(a) (1) Except as otherwise provided in this subsection, each authorized insurer and each rating organization that has been designated by an insurer for the filing of rates under subsection (b) of this section shall file with the Commissioner all rates and supplementary rate information and all changes and amendments of rates and supplementary information made by it for use in the State on or before the date they become effective. (2) Rates and supplementary rate information need not be filed for inland marine risks that by general custom are not written according to manual rules or rating plans. (b) (1) An insurer may itself establish rates and supplementary rate information based on the factors in § 11–306 of this subtitle. (2) Except for workers’ compensation insurance rates, an insurer may use rates and supplementary rate information prepared and filed with the Commissioner by a rating organization of which it is a member or subscriber, with average loss factors or expense factors determined by the rating organization or with modification for its own expense and loss experience as the credibility of that experience allows. (3) If an insurer uses rates and supplementary rate information prepared by a rating organization: (i) the insurer shall notify the Commissioner that it uses rates and supplementary rate information prepared and filed with the Commissioner by a designated rating organization of which it is a member or subscriber and shall provide the Commissioner with information about modifications of those rates and supplementary rate information that is necessary to inform the Commissioner fully; and (ii) subject to modifications filed by the insurer, the insurer’s rates and supplementary rate information shall be those filed periodically by the rating organization, including any amendments to those filings. (c) (1) In this subsection, “proprietary rate–related information”: (i) means a rating model; and (ii) includes the formulas, algorithms, analyses, and specific weights given to variables used in the model. (2) (i) Except as provided in paragraph (3) of this subsection, each filing and any supporting information filed under this subtitle shall be open to public inspection as soon as filed. (ii) On request and payment of a reasonable charge, a person may obtain copies of a filing and any supporting information. (3) (i) Information that an insurer files with the Commissioner and identifies as proprietary rate–related information: 1. constitutes a trade secret and confidential commercial information; 2. subject to subparagraph (ii) of this paragraph and except as provided in subparagraph (iii) of this paragraph, shall be kept confidential by the Commissioner; and 3. is not subject to subpoena served on the Commissioner or any recipient of proprietary rate–related information under subparagraph (iii) of this paragraph. (ii) 1. Except as provided in subsubparagraph 2 of this subparagraph, if the Commissioner determines that some or all of the material that an insurer files and identifies as proprietary rate–related information does not constitute proprietary rate–related information as defined in paragraph (1) of this subsection, the Commissioner shall: A. give the insurer written notice of that determination; and B. make the material open to public inspection 10 business days after the date the Commissioner gives notice of the determination to the insurer. 2. The Commissioner may not disclose the material if: A. the insurer has not put the rate filing into effect; and B. within the time period described in subsubparagraph 1B of this subparagraph, the insurer withdraws the rate filing and notifies the Commissioner that the rate filing is withdrawn. (iii) This paragraph does not prohibit the Commissioner from disclosing an insurer’s proprietary rate–related information: 1. in furtherance of a regulatory or legal action that the Commissioner undertakes in performing the Commissioner’s duties under this article; 2. if the recipient enters into a written agreement to maintain the confidentiality of the proprietary rate–related information, to: A. an outside consultant that the Commissioner engages to assist the Commissioner in reviewing the insurer’s rate filing; B. another state’s insurance regulatory agency; C. the National Association of Insurance Commissioners; or D. a state or federal law enforcement authority, including the United States Department of Justice and the Maryland Attorney General, if acting in a law enforcement capacity; or 3. if the proprietary rate–related information is part of a homeowner’s insurance rate filing, to the People’s Insurance Counsel Division acting under § 6–306 of the State Government Article. (iv) 1. Except as provided in subsubparagraph 2 of this subparagraph, the People’s Insurance Counsel Division shall maintain the confidentiality of proprietary rate–related information disclosed to the Division under subparagraph (iii)3 of this paragraph. 2. The People’s Insurance Counsel Division may disclose proprietary rate–related information to an outside consultant that the Division engages to assist the Division in reviewing a homeowner’s insurance rate filing, provided that the outside consultant enters into a written agreement to maintain the confidentiality of the proprietary rate–related information. (v) The Commissioner shall notify the insurer in writing at least 10 business days before the Commissioner discloses any of the insurer’s proprietary rate–related information under subparagraph (iii) of this paragraph. (vi) In addition to any other rights an insurer may have under any other applicable law, the insurer may seek to have any disclosure of the insurer’s proprietary rate–related information under subparagraph (iii)1 of this paragraph be made under seal or other protection of confidentiality. (vii) There is no waiver of any applicable privilege or claim of confidentiality with regard to any proprietary rate–related information that is disclosed under subparagraph (iii) of this paragraph. (4) This subsection may not be construed to: (i) authorize an insurer to designate the rating factors used to calculate the premium as proprietary rate–related information; or (ii) authorize the Commissioner to keep the rating factors confidential. (d) (1) The Commissioner may investigate and determine whether or not rates in the State are excessive, inadequate, or unfairly discriminatory. (2) In an investigation and determination under this subsection, the Commissioner shall give due consideration to the factors specified in § 11–306 of this subtitle.

Md. Code, Insurance § 11-308

(a) (1) If, after a hearing, the Commissioner finds that a rate is not in compliance with § 11-306 of this subtitle or that a rate was set in violation of § 11-342 of this subtitle, the Commissioner shall issue an order that requires that use of the rate be discontinued for each policy issued or renewed after a date specified in the order. (2) The order may provide prospectively for premium adjustment of each policy then in force. (3) Except as provided in subsection (b) of this section, the Commissioner shall issue the order within 30 days after the conclusion of the hearing or within a reasonable extension of that time set by the Commissioner. (4) An order issued under this subsection expires 1 year after its effective date unless it is rescinded earlier by the Commissioner. (b) (1) Pending a hearing, the Commissioner may issue an order that prospectively suspends a rate filed by an insurer and reimposes the last previous rate in effect if the Commissioner has reasonable cause to believe that: (i) the rate is in violation of § 11-306 of this subtitle; (ii) unless the order of suspension is issued, certain insureds will suffer irreparable harm; (iii) the hardship that insureds will suffer in the absence of the order of suspension outweighs the hardship that the insurer would suffer if the order of suspension were issued; and (iv) the order of suspension will not cause substantial harm to the public. (2) Unless the insurer waives a hearing, the Commissioner: (i) shall hold a hearing within 15 working days after issuing the order of suspension; and (ii) within 15 working days after the conclusion of the hearing, shall make a determination and issue an order as to whether the rate should be disapproved. (c) (1) (i) At a hearing to determine compliance with § 11-306(b)(2) of this subtitle, the Commissioner first shall determine whether a reasonable degree of competition exists within a market and shall issue a ruling to that effect. (ii) All insurers that operate within a market that is subject to a determination by the Commissioner under this paragraph shall have the burden of establishing that a reasonable degree of competition exists within that market. (iii) In determining the competitiveness of a market, the Commissioner shall consider all relevant factors including: 1. the number of insurers actively engaged in providing coverage in the market; 2. market shares; 3. changes in market shares; and 4. ease of entry. (2) (i) If the Commissioner determines that a reasonable degree of competition does not exist in a market, each insurer designated by the Commissioner shall have the burden of justifying its rate in that market. (ii) The Commissioner may require that an insurer file supporting data as provided under § 11-312 of this subtitle. (3) The Commissioner shall make each determination on the basis of findings of fact and conclusions of law. (4) If the Commissioner disapproves a rate: (i) the disapproval may not take effect until at least 15 days after the date of the order of disapproval; and (ii) unless the Commissioner approves a rate under subsection (d) or (e) of this section, the last previous rate in effect for the insurer shall be reimposed for a period of 1 year. (d) During the 1-year period after the effective date of an order of disapproval, a rate adopted to replace a rate disapproved under the order may not be used until: (1) the rate has been filed with the Commissioner; and (2) the Commissioner has not disapproved the rate within 30 days after it was filed. (e) (1) If an insurer does not have any legally effective rates as a result of the Commissioner’s disapproval of rates or other act, the Commissioner: (i) on request of the insurer, shall specify interim rates for the insurer that are high enough to protect the interests of all parties; and (ii) may order that a specified part of the premiums be placed in a special reserve established by the insurer. (2) (i) Except as provided in subparagraph (ii) of this paragraph, when new rates become legally effective, the Commissioner shall order the specially reserved funds or any overcharge in the interim rates to be distributed appropriately. (ii) The Commissioner may not require refunds to policyholders if the refunds are minimal.

Md. Code, Insurance § 11-309

(a) If, after a hearing, the Commissioner finds that the protection of the interests of the insureds of a particular insurer and the public in the State requires closer supervision of the insurer’s rates because of the insurer’s financial condition or repetitive filing of rates that are not in compliance with § 11-306 of this subtitle, the Commissioner may issue an order that requires the insurer to file any or all of the insurer’s rates and supplementary rate information 30 days before they become effective. (b) By written notice to the insurer during the initial 30-day waiting period, the Commissioner may extend the waiting period for an additional period not exceeding 30 days. (c) (1) The Commissioner shall approve or disapprove the filing during the waiting period or any extension of the waiting period. (2) The filing is deemed approved unless disapproved by the Commissioner during the waiting period or any extension of the waiting period. (d) An insurer affected by an action of the Commissioner under this section may not request a rehearing by the Commissioner until 12 months after the date of an order of the Commissioner under subsection (a) of this section.

Md. Code, Insurance § 11-310

(a) (1) The Commissioner may adopt a rule that requires that subsequent changes in the rates or supplementary rate information for a kind or line of insurance, subdivision of a kind or line of insurance, or rating class or rating territory be filed with the Commissioner at least 30 working days before they become effective if the Commissioner finds that with respect to that kind, line, subdivision, rating class, or rating territory: (i) competition is not an effective regulator of the rates charged; (ii) a substantial number of insurers are competing irresponsibly through the rates charged; or (iii) there are widespread violations of this subtitle. (2) By written notice to the filer during the initial 30-day waiting period, the Commissioner may extend the waiting period for an additional period not exceeding 30 working days. (b) (1) A rule adopted under this section may not remain in effect for more than 1 year after it is adopted. (2) The Commissioner may renew a rule adopted under this section after a hearing and appropriate findings under this section.

Md. Code, Insurance § 11-311

On written application of an insurer that states its reasons for requesting the rate, accompanied by the written consent of the insured or prospective insured, filed with and approved by the Commissioner, a rate in excess of that provided by a filing otherwise applicable may be used on a specific risk.

Md. Code, Insurance § 11-312

(a) (1) The Commissioner may require the filing of supporting data as to any or all kinds or lines of insurance or subdivisions of kinds or lines of insurance or classes of risks or combinations of classes of risks as the Commissioner considers necessary for the proper functioning of the rate monitoring and regulating process. (2) The supporting data shall include: (i) the experience and judgment of the filer and, to the extent the filer wishes or the Commissioner requires, the experience and judgment of other insurers or rating organizations; (ii) the filer’s interpretation of any statistical data relied on; (iii) a description of the actuarial and statistical methods used in setting the rates; and (iv) any other relevant matters required by the Commissioner. (b) Whenever a filing is not accompanied by the information as required by the Commissioner under § 11-310(a) of this subtitle, the Commissioner may so inform the insurer and the filing will be deemed to be made when the information is provided.

Md. Code, Insurance § 11-313

For a kind or line of insurance as to which the Commissioner has issued an order in which the Commissioner finds that a reasonable degree of competition does not exist, the Commissioner may require the insurer at the time of filing a proposed rate increase with the Commissioner to notify each policyholder in writing that: (1) the insurer has filed a proposed rate increase with the Commissioner; (2) a hearing may be requested with respect to the filing; and (3) an order, hearing, or refusal of a hearing by the Commissioner may be appealed under Subtitle 5 of this title.

Md. Code, Insurance § 11-314

(a) Each rating organization and each insurer subject to this subtitle that makes its own rates shall provide reasonable means within the State by which a person aggrieved by the application of its rating system may be heard in person or by an authorized representative on the person’s written request to review the manner in which the rating system has been applied in connection with the insurance afforded the aggrieved person. (b) If the rating organization or insurer fails to grant or reject the aggrieved person’s request within 30 days after it is made, the applicant may proceed as if the application had been rejected. (c) (1) Within 30 days after written notice of the action of a rating organization or insurer on a request for review, any party affected by the action may apply, in writing, for an appeal to the Commissioner. (2) An application under this subsection shall set forth the basis for the appeal and the grounds on which the applicant will rely. (d) (1) The Commissioner shall review the application for appeal. (2) If the Commissioner finds that the application is made in good faith and sets forth on its face grounds that reasonably justify a hearing, the Commissioner shall hold a hearing. (3) The Commissioner shall give written notice of the hearing to the applicant and rating organization or insurer at least 10 days before the hearing. (4) After the hearing, the Commissioner shall affirm or reverse the action.

Md. Code, Insurance § 11-315

Md. Code, Insurance § 11-317

(a) In this section, “increase in a policy premium” includes an increase in premium due to: (1) a surcharge; (2) retiering or other reclassification of an insured; or (3) removal or reduction of a discount. (b) Each insurer that provides a private passenger automobile insurance policy shall provide to the policyholder at the time of issuance or renewal of the policy a statement that: (1) defines the policyholder’s rate classifications; (2) if the insurer is an authorized insurer includes a summary, in a form approved by the Commissioner, of the insurer’s approved surcharge plan or driver record point plan for that policy; and (3) includes a section that provides a general description of the factors, including credit information if applicable, that may cause or contribute to an increase in a policy premium. (c) The statement must be sufficiently clear and specific so that an individual of average intelligence can identify the classifications without making further inquiry. (d) An insurer that markets private passenger automobile insurance through insurance producers shall make available to its producers a copy of the statement required under this section.

Md. Code, Insurance § 11-318

(a) All automobile insurance rates shall be made in accordance with the principles set forth in this section. (b) (1) An insurer under an automobile liability insurance policy may not classify or maintain an insured for a period longer than 3 years in a classification that entails a higher premium: (i) because of a specific claim; or (ii) because of the insured’s driving record. (2) For the purpose of determining whether to classify an insured in a classification that entails a higher premium, an insurer may review only a period not greater than 3 years before: (i) if the policy has not yet been issued: 1. the date of the application; or 2. the proposed effective date of the policy; or (ii) on renewal of a policy, the effective date of the renewal. (3) (i) The removal of a discount is not a violation of this subsection. (ii) The application of a program that measures the operation of an insured vehicle during the current policy period is not a violation of this subsection. (iii) Subparagraph (i) of this paragraph may not be construed to prevent an insurer from granting a claim–free discount to an insured. (c) An insurer’s automobile and physical damage insurance premiums shall reflect the reduction in claims, if any, attributable to the requirement that drivers under the age of 18 years must acquire a provisional driver’s license before acquiring a driver’s license. (d) For purposes of reclassifying an insured in a classification that entails a higher premium, an insurer under an automobile insurance policy may not consider accident reports and abstracts of court convictions that relate to driving an emergency vehicle and that are on record with the Motor Vehicle Administration, as provided in § 16–117(b) of the Transportation Article. (e) For purposes of reclassifying an insured in a classification that entails a higher premium, an insurer under an automobile insurance policy may not consider a probation before judgment disposition of a motor vehicle law offense, a civil penalty imposed pursuant to § 21–202.1, § 21–809, § 21–810, or § 24–111.3 of the Transportation Article, or a first offense of driving with an alcohol concentration of 0.08 or more under § 16–205.1 of the Transportation Article on record with the Motor Vehicle Administration, as provided in § 16–117(b) of the Transportation Article. (f) If the insured under an automobile insurance policy notifies the insurer of a change in circumstances that justifies reclassifying the insured in a different classification or territory, the insurer shall adjust the premium charged the insured from the date of notification. (g) For motor vehicle personal injury and property damage coverage, an insurer may provide a reduction in rates based on actuarial justification to an insured who: (1) is at least 55 years old; and (2) within the last 2 years, has completed successfully a course in accident prevention: (i) that is approved by the Motor Vehicle Administration; (ii) that includes classroom instruction or practice driving of the number of hours that the Motor Vehicle Administration requires; and (iii) for which the insured has received a certificate that certifies the completion of the course.

Md. Code, Insurance § 11-319

Md. Code, Insurance § 11-321

(a) In Part IV of this subtitle the following words have the meanings indicated. (b) “Affiliate” has the meaning stated in § 7-101 of this article. (c) “Major insurer” means an insurer or affiliate or subsidiary of that insurer that has written an amount of private passenger premium in the State that totals 1% or more of the total premium of private passenger premium written in the State by all insurers, including the Maryland Automobile Insurance Fund. (d) “Private passenger premium” means the direct written premium derived from the sale of private passenger motor vehicle insurance policies in a calendar year. (e) “Subsidiary” has the meaning stated in § 7-101 of this article.

Md. Code, Insurance § 11-322

(a) Part IV of this subtitle applies to each authorized insurer that writes private passenger motor vehicle insurance in the State. (b) Except as expressly provided otherwise, Part IV of this subtitle does not apply to the Maryland Automobile Insurance Fund.

Md. Code, Insurance § 11-323

(a) On or before July 1 of each year, each insurer and the Maryland Automobile Insurance Fund shall file data about the geographic distribution of private passenger premium written by it in the State for the preceding calendar year. (b) The data required under this section shall: (1) be filed with the Commissioner in the form required by the Commissioner; and (2) at a minimum, detail the amount of private passenger premium written by the insurer and the Maryland Automobile Insurance Fund in the preceding calendar year and the number of policies represented by that premium: (i) in the State as a whole; and (ii) in Baltimore City. (c) The data shall be submitted by each rating territory or each zip code, or both. (d) Failure by the insurer or the Maryland Automobile Insurance Fund to submit the data required under this section on a timely basis is grounds for the imposition of the penalties provided in §§ 4-113 and 4-114 of this article.

Md. Code, Insurance § 11-324

On or before August 15 of each year, the Commissioner shall: (1) prepare a list of insurers that are major insurers; (2) compute each insurer’s market share in the State in the preceding calendar year; (3) notify in writing each insurer that has been designated as a major insurer; and (4) compute each insurer’s market share in Baltimore City.

Md. Code, Insurance § 11-325

(a) On or before October 1 of each year, each insurer that has been designated a major insurer on or before August 15 of the same year shall file a marketing plan with the Commissioner. (b) The goal of the marketing plan shall be to ensure that the insurer markets and otherwise makes available insurance to those persons who reside in Baltimore City in the same manner as to persons who reside in other jurisdictions in the State. (c) (1) The Commissioner shall review the marketing plan to determine whether the plan will achieve the goal stated in subsection (b) of this section. (2) A marketing plan is deemed approved unless disapproved by the Commissioner within 30 days after submission. (3) (i) If the marketing plan does not contain sufficient information for the Commissioner to determine if the plan will achieve the goal stated in subsection (b) of this section, the Commissioner shall require the major insurer to provide the needed information within 30 days after the Commissioner requests the information. (ii) If additional information is required by the Commissioner under this paragraph, the time period for approval, disapproval, or deemed approval begins on the date the additional information is submitted. (4) If the Commissioner determines that the marketing plan will not achieve the goal stated in subsection (b) of this section, the Commissioner shall require the major insurer to file for review and approval a revised marketing plan for Baltimore City. (d) (1) On or before September 1 of each year, a major insurer may file a written request with the Commissioner for a 1-year exemption from the requirements of this section. (2) The Commissioner may grant an exemption under this subsection if the Commissioner determines that for calendar year 1994 the major insurer wrote a de minimus amount of total yearly private passenger motor vehicle insurance, as determined by the Commissioner, in the Baltimore standard metropolitan statistical area. (3) On or before September 15 of each year in which a request is filed, the Commissioner shall determine whether the exemption should be granted. (e) (1) Subject to paragraph (2) of this subsection, the Commissioner shall exempt from the requirements of this section an insurer that: (i) on or after January 1, 1995, has limited the availability of its insurance to persons who are members of a club, group, or organization; and (ii) uniformly requires eligibility for that club, group, or organization as a condition of providing insurance. (2) On or before October 1 of each year, each major insurer exempted under this subsection shall file a marketing plan for Baltimore City. (3) The goal of the marketing plan shall be to ensure that the insurer markets and otherwise makes available insurance to those persons who reside in Baltimore City and who otherwise satisfy the eligibility conditions of the insurer, in the same manner as to persons who reside in other jurisdictions in the State. (f) Unless otherwise exempted from the requirements of this section, the failure of a major insurer to file or substantially implement a marketing plan for Baltimore City or to market and otherwise make available insurance to those persons who reside in Baltimore City in the same manner as to persons who reside in other jurisdictions in the State as required under this section is, after notice and opportunity for a hearing, grounds for the imposition of the penalties provided under §§ 4-113 and 4-114 of this article. (g) This section does not authorize the Commissioner to require that an insurer place an insurance producer in a particular location or jurisdiction. (h) If the market share of private passenger premium written by a major insurer in Baltimore City equals or exceeds 75% of the market share of private passenger premium written by the major insurer in any year in the State, excluding Baltimore City, the major insurer is not required to file a marketing plan under this section for the following year.

Md. Code, Insurance § 11-326

(a) Notwithstanding any other provision of law, any data, documents, or other information filed with the Commissioner under Part IV of this subtitle about a particular insurer or that insurer’s market share or plan: (1) shall be considered confidential commercial information; (2) shall be kept confidential by the Commissioner; and (3) may not be made public or be subject to subpoena, other than by the Commissioner for the purpose of enforcement of Part IV of this subtitle by the Commissioner. (b) The Commissioner: (1) may release a list of the names of all insurers designated as major insurers; and (2) may not release the particular market share of a major insurer in Baltimore City unless authorized by the insurer.

Md. Code, Insurance § 11-329

(a) Each workers’ compensation insurer shall: (1) be a member of a workers’ compensation rating organization; and (2) adhere to the policy forms filed by the rating organization. (b) (1) Each workers’ compensation insurer shall adhere to a uniform classification system and uniform experience rating plan filed with the Commissioner by a rating organization designated by and subject to disapproval by the Commissioner. (2) (i) An insurer may develop subclassifications of the uniform classification system on which a rate may be made. (ii) Any subclassification developed under subparagraph (i) of this paragraph shall be filed with the Commissioner at least 30 days before its use. (iii) If the insurer fails to demonstrate that the data produced under a subclassification can be reported in a manner consistent with the uniform classification system and uniform statistical plan, the Commissioner shall disapprove the subclassification. (3) (i) An insurer may develop a tiered rating plan containing two or more risk tiers to be applied to the insurer’s acceptance of risks under the uniform classification system on which a rate may be made. (ii) A tiered rating plan under subparagraph (i) of this paragraph shall: 1. establish discrete tiers for the acceptance of risks based on defined risk attributes that: A. are not arbitrary, capricious, or unfairly discriminatory; and B. are reasonably related to the insurer’s business and economic purposes; and 2. require that each insured be placed in the highest quality tier for which that insured qualifies. (iii) An insurer shall file a tiered rating plan developed under subparagraph (i) of this paragraph with the Commissioner at least 30 days before the tiered rating plan’s use. (iv) If an insurer fails to demonstrate that the data produced under a tiered rating plan can be reported in a manner consistent with the uniform classification system and the uniform statistical plan, the Commissioner shall disapprove the tiered rating plan. (c) Each workers’ compensation insurer shall record and report its workers’ compensation experience to a rating organization as set forth in the uniform statistical plan approved by the Commissioner. (d) (1) Subject to the approval of the Commissioner, each rating organization shall develop and file rules reasonably related to the recording and reporting of data under the uniform classification system, uniform statistical plan, and uniform experience rating plan. (2) In writing and reporting its business, each workers’ compensation insurer shall adhere to the approved rules and experience rating plan. (3) An insurer may not agree with another insurer or rating organization to adhere to rules that are not reasonably related to the recording and reporting of data under the uniform classification system or uniform statistical plan. (e) The experience rating plan methodology required under § 11–330(d)(4) of this subtitle shall be based on: (1) reasonable eligibility standards; (2) adequate incentives for loss prevention; and (3) sufficient premium differentials so as to encourage safety. (f) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection, the uniform experience rating plan shall be the exclusive means of providing prospective premium adjustment based on measurement of the loss–producing characteristics of an individual insured. (2) In addition to any premium adjustment allowed under paragraph (1) of this subsection and pursuant to a filing made by a rating organization and approved by the Commissioner, an insurer may file a rating plan with the Commissioner that provides for prospective premium adjustments up to 25% based upon characteristics of a risk that are not reflected in the uniform experience rating plan. (3) An insurer may file a rating plan with the Commissioner that provides for prospective premium adjustments based on merit for an insured that does not meet minimum premium requirements to qualify for a uniform experience rating plan. (4) (i) Except as provided in subparagraph (ii) of this paragraph, in addition to any premium adjustment allowed under paragraphs (1), (2), and (3) of this subsection and pursuant to a filing made by a rating organization and approved by the Commissioner, an insurer may file a rating plan with the Commissioner that provides for a premium discount for appropriate classifications or subclassifications of a risk of up to 4% to an insured that has an alcohol– and drug–free workplace policy that may include one or more of the following programs: 1. an alcohol and drug testing program; 2. an employee education program on alcohol and drug abuse; 3. a supervisor education program on alcohol and drug abuse; 4. an employee assistance program that includes referrals of employees for appropriate diagnosis, treatment, and assistance; 5. a program requiring an employee who has caused or contributed to an accident while at work to undergo alcohol or drug testing; and 6. any other program that the insurer deems effective to encourage an alcohol– and drug–free workplace. (ii) An insurer is not required to provide a premium discount under this paragraph if the insured is required under federal or State law to test its employees for drugs or otherwise provide an alcohol– and a drug–free workplace. (5) An insurer may file a rating plan that provides for retrospective premium adjustments based on an insured’s past experience.

Md. Code, Insurance § 11-330

(a) In this section, “provision for claim payment” means an estimate, expressed on a per unit of exposure basis, of the monetary amount ultimately to be needed to pay workers’ compensation insurance claims, excluding all loss adjustment or claim management expenses, other operating expenses, assessments, taxes, and profit or contingency allowances. (b) Except as provided in subsection (e) of this section, the Commissioner shall review each workers’ compensation insurance filing as soon as reasonably possible after it is made to determine whether it meets the requirements of this subtitle. (c) (1) (i) Except as otherwise provided in this subsection, the effective date of a workers’ compensation insurance filing is the date specified in the filing. (ii) The effective date of a workers’ compensation insurance filing may not be earlier than 30 days after: 1. the date on which the Commissioner receives the filing; or 2. the date on which the Commissioner receives information in support of the filing, if the Commissioner requires information to be provided in support of the filing. (2) By written notice to the filer during the initial 30-day waiting period that the Commissioner needs additional time for consideration of the filing, the Commissioner may extend the waiting period for an additional period not exceeding 30 days. (3) On written application by the filer, the Commissioner may authorize a filing that the Commissioner has reviewed to become effective before the expiration of the waiting period or any extension of the waiting period. (4) A filing is deemed approved unless disapproved by the Commissioner during the waiting period or any extension of the waiting period. (d) Subject to approval or disapproval under subsection (c) of this section, each workers’ compensation rating organization shall file with the Commissioner: (1) workers’ compensation rates and rating plans that are limited to provision for claim payment; (2) each workers’ compensation policy form to be used by its members or subscribers; (3) the uniform classification; (4) the uniform experience rating plan and rules; and (5) any other information that the Commissioner requests and is otherwise entitled to receive under this subtitle. (e) Notwithstanding subsection (c) of this section, if each rate in a schedule of workers’ compensation rates for specific classifications of risks filed by an insurer is not lower than the provision for claim payment contained in the schedule of workers’ compensation rates for those classifications filed by a rating organization under subsection (d) of this section and approved by the Commissioner, the schedule of rates filed by the insurer may become effective as soon as it is filed. (f) Notwithstanding subsection (e) of this section, the Commissioner shall investigate and evaluate all workers’ compensation filings to determine whether they meet the requirements of this subtitle. (g) Notwithstanding § 11-307 of this subtitle, the Commissioner may require an insurer or rating organization to comply with the requirements of subsection (c) of this section if the Commissioner has good cause to believe that a reasonable degree of competition does not exist within a workers’ compensation insurance market.

Md. Code, Insurance § 11-332

§11–332. NOT IN EFFECT ** TAKES EFFECT JANUARY 1, 2022 PER CHAPTER 36 OF 2015 ** The rating organization that the Commissioner designates under § 11–329 of this subtitle shall create and maintain an exception in its classification system to allow any authorized insurer in the State to use a single classification code for governmental occupations that are not included in police, firefighter, and clerical classifications.

Md. Code, Insurance § 11-333

(a) A rating organization may not provide a service that relates to the rates of insurance subject to this subtitle, and an insurer may not utilize the service of the rating organization for those purposes, unless the rating organization has obtained a license under § 11-218 of this title. (b) A rating organization may not refuse to supply services for which it is licensed in the State to an authorized insurer that offers to pay the fair and usual compensation for the services. (c) An advisory organization has the same authority and functions under this subtitle as under § 11-221 of this title.

Md. Code, Insurance § 11-334

(a) Cooperation among rating organizations or among rating organizations and insurers in rate making or in other matters within the scope of this subtitle is authorized, if the filings that result from cooperation are subject to all provisions of this subtitle that are applicable to filings generally. (b) (1) The Commissioner may review cooperative activities and practices among rating organizations and among rating organizations and insurers. (2) If, after a hearing, the Commissioner finds that an activity or practice is unfair, unreasonable, or otherwise inconsistent with this subtitle, the Commissioner may issue a written order that specifies the ways in which the activity or practice is unfair, unreasonable, or otherwise inconsistent with this subtitle and requires that the activity or practice be discontinued.

Md. Code, Insurance § 11-337

(a) (1) Each insurer shall file with the Commissioner, and the Commissioner shall review, reasonable rules and plans for the recording and reporting of loss and expense experience in appropriate form and detail. (2) An insurer may not be required to record or report its experience on a classification basis that is inconsistent with its own rating system. (3) The Commissioner may designate one or more rating organizations to help in gathering and compiling experience information. (b) The Commissioner and each insurer and rating organization may: (1) exchange information and experience data with each other and with insurance supervisory officials, insurers, and rating organizations in other states; and (2) consult with them about rate making and the application of rating systems. (c) Rating organizations shall collect all relevant information from member insurers.

Md. Code, Insurance § 11-341

An insurer may not make or issue an insurance contract or policy of insurance of a kind to which this subtitle applies, except in accordance with the filings that are in effect for the insurer as provided in this subtitle.

Md. Code, Insurance § 11-342

(a) In this section, “insurer” includes two or more affiliated insurers under common management or under common controlling ownership or other common effective legal control and in fact engaged in joint or cooperative underwriting, investment management, marketing, servicing, or administration of their business and affairs as insurers. (b) An insurer or rating organization may not: (1) monopolize, attempt to monopolize, or combine or conspire with another person or persons to monopolize the business of a kind of insurance, subdivision, or class of insurance; (2) agree with another insurer or rating organization to charge or adhere to a rate, although insurers and rating organizations may continue to exchange statistical information; (3) make an agreement with another insurer, rating organization, or other person to unreasonably restrain trade; (4) make an agreement with another insurer, rating organization, or other person if the effect of the agreement may be substantially to lessen competition in the business of a kind of insurance, subdivision, or class of insurance; or (5) make an agreement with another insurer or rating organization to refuse to deal with a person in connection with the sale of insurance. (c) An insurer may not acquire or retain the capital stock or assets of, or have any common management with, another insurer if the acquisition, retention, or common management substantially lessens competition in the business of a kind of insurance, subdivision, or class of insurance. (d) A rating organization or member or subscriber of a rating organization may not interfere with the right of an insurer to make its rates independently of the rating organization or to charge different rates from the rates made by the rating organization. (e) A rating organization may not adopt a rule, require an agreement, or formulate or engage in a program that would require a member, subscriber, or insurer to: (1) use some or all of its services; (2) adhere to its rates, rating plan, rating systems, underwriting rules, or policy forms; or (3) prevent an insurer from acting independently. (f) (1) The Commissioner shall disapprove a rate in violation of this section in accordance with the procedures required by § 11-308(a) of this subtitle. (2) A person that violates this section is subject to the penalties provided in § 11-344 of this subtitle. (g) The Commissioner may maintain an action to enjoin a violation of this section.

Md. Code, Insurance § 11-343

(a) A person may not willfully withhold information from or knowingly give false or misleading information to the Commissioner, a statistical agency designated by the Commissioner, a rating organization, or an insurer if the information will affect the rates or premiums chargeable under this subtitle. (b) A person that violates this section: (1) is subject to the penalties provided in § 11-344 of this subtitle; and (2) if the violation is committed with intent to deceive, is guilty of perjury and subject to prosecution for perjury in a court of competent jurisdiction.

Md. Code, Insurance § 11-344

(a) If, after notice and a hearing, the Commissioner finds that a person has violated a provision of this subtitle or a regulation of the Commissioner adopted under this subtitle, the Commissioner may impose a monetary penalty as provided in § 4-113(d) of this article. (b) (1) The Commissioner may suspend, revoke, or refuse to renew a license or certificate of authority for a violation of this subtitle. (2) The Commissioner may determine when the suspension or revocation of a license or certificate of authority becomes effective. (3) The suspension or revocation shall remain in effect for the period set by the Commissioner unless the Commissioner modifies or rescinds the suspension or revocation or until the order on which the suspension or revocation is based is modified or reversed as the result of an appeal. (c) (1) Before the Commissioner imposes a penalty or suspends or revokes a license or certificate of authority under this section, the Commissioner shall issue a written order that states the findings of the Commissioner. (2) The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection. (3) The Commissioner shall give written notice of the hearing to the person at least 10 days before the hearing. (4) The notice shall specify the alleged violation.

Md. Code, Insurance § 11-401

(a) This subtitle applies to all kinds and classes of insurance that: (1) insure or guarantee titles to real or leasehold property or an estate in real or leasehold property; (2) insure or guarantee against loss by reason of defects, encumbrances, liens, or charges on real or leasehold property or an estate in real or leasehold property; (3) insure or guarantee the validity, priority, and status of liens on real or leasehold property or an estate in real or leasehold property; or (4) insure or guarantee the correctness and sufficiency of searches for instruments, liens, charges, or other matters affecting the title to real or leasehold property or an estate in real or leasehold property. (b) This subtitle applies to a person that makes guarantees or issues insurance described in subsection (a) of this section.

Md. Code, Insurance § 11-402

(a) All title insurance rates shall be made in accordance with this section. (b) Rates shall be reasonable and adequate for the class of risks to which they apply. (c) Rates may not discriminate unfairly between risks that involve essentially the same hazards and expense elements. (d) Due consideration shall be given to: (1) past and prospective loss experience within and outside the State; (2) a reasonable margin for profit and contingencies; (3) the cost of participating insurance; (4) the percentage to be allocated to reserve; (5) operating expenses; and (6) all other relevant factors fairly attributable to the business of title insurance. (e) (1) Guarantees may be grouped by classifications for the establishment of rates and minimum premiums. (2) A special or unusual guarantee that is more hazardous to the title insurer than ordinary title guarantees because of an alleged irregularity or a difference in interpretation or application of law that might affect marketability of title, may be classified individually and separately according to the circumstances peculiar to each case.

Md. Code, Insurance § 11-403

(a) (1) Except as otherwise provided in this subsection, each title insurer shall file with the Commissioner all rates or premiums, supplementary rate information, forms of contracts, policies, or guarantees of insurance, and all modifications of contracts, policies, or guarantees of insurance that it proposes to use. (2) A filing is not required for rates or premiums for a special or unusual guarantee as described in § 11–402(e)(2) of this subtitle. (b) Each filing shall indicate the character or extent of coverage contemplated under the rates and premiums for which it is made. (c) A title insurer may not make a change in rates or premiums or in the forms of contracts, policies, or guarantees of insurance unless a report that indicates the change has been filed with and approved by the Commissioner. (d) A title insurer may satisfy its obligation to make filings by: (1) being a member of or a subscriber to a licensed title rating organization that makes filings; and (2) authorizing the Commissioner to accept filings on its behalf from the title rating organization.

Md. Code, Insurance § 11-404

(a) (1) Unless the Commissioner finds that a filing does not meet the requirements of this subtitle or is otherwise contrary to law, the Commissioner shall approve the filing. (2) As soon as reasonably possible after a filing is made, the Commissioner shall approve or disapprove the filing in writing. (3) If the Commissioner disapproves a filing, the Commissioner shall specify the ways that the Commissioner finds that the filing fails to meet the requirements of this subtitle or is otherwise contrary to law. (b) (1) This subsection does not apply to filings by a rating organization on behalf of title insurers that are members or subscribers of the rating organization. (2) If a filing is not disapproved by the Commissioner within 15 days after the date of filing, or within 30 days after the date of filing if the Commissioner extends the waiting period in writing during the initial 15–day period, the filing is deemed approved and the effective date of the filing is the end of the 15–day or 30–day waiting period. (c) (1) The Commissioner shall hold a hearing to review the approval or disapproval of a filing under this section if: (i) after approval of the filing, the Commissioner finds that the filing does not meet the requirements of this subtitle or is otherwise contrary to law; (ii) a person with an interest in the filing makes a complaint to the Commissioner in writing that sets forth specific and reasonable causes for complaint; or (iii) a title insurer or a rating organization on behalf of its members or subscribers, on notice of disapproval by the Commissioner under this section, requests a hearing. (2) A hearing under this subsection shall be held within 30 days after the occurrence of an action specified in paragraph (1) of this subsection. (3) The Commissioner shall give written notice of the hearing to all interested parties. (4) The Commissioner may confirm, modify, change, or rescind any previous action, if warranted by the facts shown at the hearing.

Md. Code, Insurance § 11-405

(a) The Commissioner shall require that each title insurer subject to this subtitle provide to the Commissioner on a uniform basis financial data and any other information that the Commissioner requires in the regulation of rates. (b) The financial data to be provided shall include: (1) rates, taxes, general expenses, allocated and unallocated loss adjustment expenses, licenses, and fees; and (2) all other expenses that relate to the procurement of business not specifically listed as commissions, including dividends, retainers, stock, office space, or any other valuable consideration. (c) The information to be provided under this section shall be supplied on forms provided by the Commissioner.

Md. Code, Insurance § 11-406

To further more equitable establishment and adjustment of rates and premiums and forms of contracts, policies, or guarantees of insurance, the Commissioner and each title insurer may: (1) exchange information and experience data with each other, with insurance supervisory officials and insurers in other states, and with national organizations and associations; and (2) consult and cooperate with them about rate and premium making and forms of contracts, policies, and guarantees of insurance.

Md. Code, Insurance § 11-407

(a) A title insurer may not make or issue a contract, policy, or guarantee of insurance except in accordance with filings approved as provided in this subtitle, except for special or unusual risks for which a filing has not yet been provided. (b) Each title insurer must hold to the rates or premiums as approved by the Commissioner and may not deviate from the rates or premiums or allow to or for the account of an insured a rebate or discount on the rates or premiums payable. (c) A title insurer may pay or allow a commission to a licensed insurance producer of the title insurer as compensation for procuring business.

Md. Code, Insurance § 11-408

A person may not knowingly give false or misleading information to the Commissioner, an insurer, or another person if the information will affect the proper determination of rates or premiums or the proper issuance of a contract, policy, or guarantee of insurance.

Md. Code, Insurance § 11-409

(a) (1) If the Commissioner finds that a person has violated a provision of this subtitle, the Commissioner may impose a civil penalty not exceeding $250 for each violation. (2) If the Commissioner finds a violation of this subtitle to be willful, the Commissioner may impose a civil penalty not exceeding $1,000 for each violation. (3) A penalty imposed under this subsection is in addition to any other penalty provided by law. (b) (1) The Commissioner may suspend the certificate of authority of a title insurer that fails to comply with an order of the Commissioner within the time set by the order or any extension of that time granted by the Commissioner. (2) The Commissioner may not suspend the certificate of authority of a title insurer for failure to comply with an order: (i) until the time set for an appeal from the order has expired; or (ii) if an appeal has been taken, until the order has been affirmed. (3) The Commissioner may determine when the suspension of a certificate of authority becomes effective. (4) The suspension shall remain in effect for the period set by the Commissioner unless the Commissioner modifies or rescinds the suspension or until the order on which the suspension is based is modified, rescinded, or reversed. (c) (1) Before the Commissioner imposes a penalty or suspends a certificate of authority under this section, the Commissioner shall issue a written order that states the findings of the Commissioner. (2) The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection. (3) The Commissioner shall give written notice of the hearing to the person at least 10 days before the hearing. (4) The notice shall specify the alleged violation.

Md. Code, Insurance § 11-501

(a) (1) This subtitle governs hearings, orders, and appeals in matters arising under this title. (2) Sections 2-210 through 2-215 of this article do not apply to rating and rating organizations. (3) Each order, decision, ruling, or finding of the Commissioner under this title is subject to judicial review under this subtitle. (b) Notwithstanding subsection (a) of this section, an order, decision, ruling, or finding of the Commissioner under § 11-344 of this title: (1) is not subject to judicial review under this subtitle; and (2) is subject to judicial review in accordance with § 2-215 of this article.

Md. Code, Insurance § 11-502

(a) Within 30 days after notice of an order or decision of the Commissioner under this title made without a hearing, an insurer or rating organization aggrieved by the order or decision may make a written request to the Commissioner for a hearing on the order or decision. (b) (1) Within 20 days after receipt of a request for a hearing under subsection (a) of this section, the Commissioner shall hold a hearing on the challenged order or decision. (2) The Commissioner shall give written notice of the time and place of the hearing at least 10 days before the hearing. (c) (1) The hearing shall be concluded within 15 days after commencement of the hearing. (2) Notwithstanding paragraph (1) of this subsection, on application with notice to the interested parties and for good cause shown, the Commissioner may grant up to an additional 15 days for a hearing to be concluded. (d) (1) Within 20 days after the conclusion of a hearing under this section, the Commissioner shall: (i) issue an order that affirms, reverses, or modifies the challenged order or decision; and (ii) give a copy of the order to all interested parties. (2) The order shall: (i) state the Commissioner’s reasons for affirming, reversing, or modifying the challenged order or decision; and (ii) contain specific findings of fact by the Commissioner in relation to the matter, that are supported by a preponderance of the evidence on consideration of the record as a whole. (3) (i) Any interested party may file proposed findings of fact with the Commissioner. (ii) The Commissioner may accept or reject the proposed findings of fact. (e) After a request for a hearing under this section, the Commissioner may suspend or postpone the effective date of the challenged order or decision until the hearing is concluded and the Commissioner issues an order. (f) If the Commissioner fails to hold or conclude the hearing or issue an order within the time required under this section, the filing or application at issue is deemed to meet the requirements of this title and is deemed approved. (g) This subtitle does not require the observance of formal rules of pleading or evidence at any hearing.

Md. Code, Insurance § 11-503

(a) An order or decision of the Commissioner under this title is subject to judicial review by appeal to the Circuit Court for Baltimore City. (b) (1) Within 30 days after the issuance of an order or decision of the Commissioner, an appeal may be commenced by filing a notice of appeal with the Circuit Court for Baltimore City and a copy of the notice of appeal with the Commissioner. (2) If an appeal is not commenced under paragraph (1) of this subsection, the right to appeal no longer exists. (3) The Commissioner shall be made a party to each appeal under this section. (c) (1) After a copy of the notice of appeal is filed with the Commissioner, the Commissioner shall prepare or cause to be prepared an official record. (2) The official record: (i) shall be certified by the Commissioner; (ii) shall include a copy of: 1. all proceedings; 2. the findings and order of the Commissioner; and 3. a transcript of any testimony and exhibits or records; and (iii) may be in typewritten form. (3) If a hearing was not held by the Commissioner on the matter that is the subject of the appeal, the Commissioner shall prepare and certify a transcript of the files in the office of the Commissioner relating to the matter. (4) Within 30 days after a copy of the notice of appeal is filed with the Commissioner, the Commissioner shall file the official record with the Circuit Court for Baltimore City. (d) (1) Except as provided in paragraph (2) of this subsection, the filing of the notice of appeal acts as a stay of a ruling, order, or decision of the Commissioner pending the final determination of the issue if the ruling, order, or decision relates to an increase or decrease of premiums or rate or to a change in a rating system. (2) Paragraph (1) does not apply if the ruling, order, or decision approves or allows a filing of an insurer or rating organization. (e) (1) Within 60 days after the date of the filing of a notice of appeal, the Circuit Court for Baltimore City shall: (i) hear and decide the appeal; and (ii) affirm, reverse, or modify the order or decision of the Commissioner from which the appeal is taken. (2) The Circuit Court for Baltimore City shall reverse or modify the order or decision of the Commissioner wholly or partly if the court finds that the order or decision: (i) is not supported by the preponderance of the evidence on consideration of the record as a whole; or (ii) is not in accordance with law. (f) (1) An appeal to the Appellate Court of Maryland may be taken from the decision of the Circuit Court for Baltimore City as in other civil cases. (2) The Commissioner shall be made a party to each appeal to the Appellate Court of Maryland under paragraph (1) of this subsection.

Md. Code, Insurance § 11-601

(a) In this subtitle the following words have the meanings indicated. (b) “Carrier” means a person that: (1) offers a health benefit plan in the State; and (2) is: (i) an insurer; (ii) a nonprofit health service plan; or (iii) a health maintenance organization. (c) “Contract holder” means a person to which a carrier has issued a health benefit plan. (d) (1) “Health benefit plan” means: (i) a health insurance contract, a nonprofit health service plan contract, or a health maintenance organization contract that includes benefits for medical care; or (ii) a certificate of health insurance issued or delivered to a Maryland resident under a contract issued to an association located in the State or any other state. (2) “Health benefit plan” does not include: (i) one or more, or any combination of the following: 1. coverage only for accident or disability income insurance; 2. coverage issued as a supplement to liability insurance; 3. liability insurance, including general liability insurance and automobile liability insurance; 4. workers’ compensation or similar insurance; 5. automobile medical payment insurance; 6. credit–only insurance; 7. coverage for on–site medical clinics; and 8. other similar insurance coverage, as specified in federal regulations issued pursuant to P.L. 104–191, under which benefits for medical care are secondary or incidental to other insurance benefits; (ii) the following benefits if they are provided under a separate policy, certificate, or contract of insurance or are otherwise not an integral part of a health benefit plan: 1. limited scope dental or vision benefits; 2. benefits for long–term care, nursing home care, home health care, community–based care, or any combination of these benefits; and 3. other similar limited benefits as specified in federal regulations issued pursuant to P.L. 104–191; (iii) the following benefits if offered as independent, noncoordinated benefits: 1. coverage only for a specified disease or illness; and 2. hospital indemnity or other fixed indemnity insurance; or (iv) the following benefits if offered as a separate policy, certificate, or contract of insurance: 1. Medicare supplemental health insurance, as defined in § 1882(g)(1) of the Social Security Act; 2. coverage supplemental to the coverage provided under Chapter 55 of Title 10, United States Code; and 3. similar supplemental coverage provided to coverage under an employer sponsored plan. (e) “Medical care” means: (1) items or services for the diagnosis, cure, mitigation, treatment, or prevention of a disease, injury, or condition affecting any structure or function of the body; and (2) transportation primarily for and essential to medical care described in item (1) of this subsection.

Md. Code, Insurance § 11-602

This subtitle applies to a carrier that issues or delivers a health benefit plan in the State.

Md. Code, Insurance § 11-603

(a) A carrier subject to this subtitle may not charge a premium to a contract holder or to an individual covered under a health benefit plan before the applicable premium rate is filed with and approved by the Commissioner. (b) A carrier subject to this subtitle may not change the premium charged to a contract holder or to an individual covered under a health benefit plan until the applicable premium rate change has been filed with and approved by the Commissioner. (c) (1) Any applicable premium rate or premium rate change of a carrier subject to this subtitle shall be filed with the Commissioner: (i) for insurers, in accordance with § 12–203 of this article and regulations adopted under Title 31, Subtitle 10 of the Code of Maryland Regulations; (ii) for nonprofit health service plans, in accordance with § 14–126 of this article; and (iii) for health maintenance organizations, in accordance with § 19–713 of the Health – General Article and regulations adopted under Title 31, Subtitle 12 of the Code of Maryland Regulations. (2) (i) The Commissioner shall disapprove or modify a proposed premium rate filing if the proposed premium rates appear, based on statistical analysis and reasonable assumptions, to be inadequate, unfairly discriminatory, or excessive in relation to benefits. (ii) In determining whether to disapprove or modify a premium rate filing of a carrier, the Commissioner shall consider, to the extent appropriate: 1. past and prospective loss experience in and outside the State; 2. underwriting practice and judgment; 3. a reasonable margin for reserve needs; 4. past and prospective expenses, both countrywide and those specifically applicable to the State; and 5. any other relevant factors in and outside the State. (3) (i) Each premium rate filing and any supporting information filed under this subtitle shall be open to public inspection as soon as filed. (ii) A carrier may request a finding by the Commissioner that certain information filed with the Commissioner be considered confidential commercial information under § 4–335 of the General Provisions Article and not subject to public inspection. (iii) On request and payment of a reasonable fee, a person may obtain copies of a premium rate filing and any supporting information. (d) Notwithstanding the Commissioner’s previous approval of a premium rate filing of a carrier subject to this section, the Commissioner, at any time, may require the carrier to demonstrate that, based on statistical analysis and reasonable assumptions and considering the factors listed in subsection (c)(2) of this section, its premium rates for a health benefit plan are not inadequate, unfairly discriminatory, or excessive in relation to benefits. (e) (1) If, after the applicable review period, the Commissioner finds that the premium rates in a premium rate filing of a carrier subject to this section are inadequate, unfairly discriminatory, or excessive, as determined under subsection (c)(2) of this section, the Commissioner shall issue to the carrier an order that: (i) specifies the reasons why the premium rate filing is inadequate, unfairly discriminatory, or excessive in relation to benefits under subsection (c)(2) of this section; and (ii) states when, within a reasonable period after the order, the premium rate filing will no longer be effective. (2) (i) The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection. (ii) The Commissioner shall give written notice of the hearing to the carrier at least 10 days before the hearing. (iii) The written notice shall specify the matters to be considered at the hearing. (3) An order issued under paragraph (1) of this subsection does not affect a health benefit plan issued or delivered before the expiration of the period stated in the order. (f) Each decision or finding of the Commissioner about premium rates made under this subtitle is subject to judicial review in accordance with Subtitle 5 of this title.

Md. Code, Insurance § 11-604

A carrier shall provide notice annually to its insureds and enrollees, and post a notice on the carrier’s Web site, that an insured or enrollee may access information about proposed rate increases and submit comments regarding proposed rate increases on the Administration’s Web site.

Md. Code, Insurance § 11-701

(a) In this subtitle the following words have the meanings indicated. (b) “Carrier” means an insurer, a nonprofit health service plan, or a preferred provider organization that offers, issues, or delivers a policy, contract, or certificate of long–term care insurance in the State. (c) “Certificate” has the meaning stated in § 18–101 of this article. (d) “Long–term care insurance” has the meaning stated in § 18–101 of this article.

Md. Code, Insurance § 11-702

The Commissioner shall provide information on the Administration’s Web site describing: (1) the factors that carriers use to determine premium rates for policies or contracts of long–term care insurance; and (2) the process and factors that the Administration uses in reviewing and approving premium rates for policies or contracts of long–term care insurance.

Md. Code, Insurance § 11-703

(a) A carrier may not charge a premium to an insured under a policy or contract of long–term care insurance before the applicable premium rate is filed with and approved by the Commissioner. (b) A carrier may not change the premium charged to an insured under a policy or contract of long–term care insurance until the applicable premium rate change has been filed with and approved by the Commissioner. (c) (1) Any applicable premium rate or premium rate change of a carrier shall be filed with the Commissioner in accordance with regulations adopted by the Commissioner. (2) (i) The Commissioner shall disapprove or modify a proposed premium rate filing if the proposed premium rates appear, based on actuarial analysis and reasonable assumptions, to be inadequate, unfairly discriminatory, or excessive in relation to benefits. (ii) In determining whether to disapprove or modify a premium rate filing of a carrier, the Commissioner shall consider, to the extent appropriate: 1. past and prospective loss experience in and outside the State; 2. underwriting practice and judgment; 3. a reasonable margin for reserve needs; 4. past and prospective expenses, both countrywide and those specifically applicable to the State; and 5. any other relevant factors in and outside the State. (3) (i) Each premium rate filing and any supporting information filed under this subtitle shall be open to public inspection as soon as filed. (ii) A carrier may request a finding by the Commissioner that certain information filed with the Commissioner be considered confidential commercial information under § 4–335 of the General Provisions Article and not subject to public inspection. (iii) On request and payment of a reasonable fee, a person may obtain copies of a premium rate filing and any supporting information. (d) (1) Except as provided in paragraph (2) of this subsection, at least quarterly, the Commissioner shall hold a public hearing to review long–term care insurance rate filings received by the Commissioner during the preceding 3–month period. (2) A public hearing is not required if the Commissioner has not received a long–term care insurance rate filing during the preceding 3–month period. (e) The Commissioner shall provide all individuals present at a public hearing held under this subtitle who wish to testify an opportunity to do so, but may limit repetitious testimony. (f) Each decision or finding of the Commissioner about premium rates made under this subtitle is subject to judicial review in accordance with Subtitle 5 of this title.

Md. Code, Insurance § 11-704

(a) A carrier shall provide a one–time written notice to its insureds that an insured may access information about proposed rate increases on the Administration’s Web site. (b) (1) For a policy or contract issued or delivered on or after January 1, 2018, the one–time written notice shall be provided at the time the policy or contract is issued or delivered. (2) For a policy or contract issued or delivered before January 1, 2018, the one–time written notice shall be provided no later than the next policy or contract anniversary date after January 1, 2018.

Md. Code, Insurance § 11-801

(a) In this section, “travel insurance” has the meaning stated in § 10–101 of this article. (b) Notwithstanding any other provision of this article, travel insurance shall be classified and filed for purposes of rates and forms under an inland marine line of insurance. (c) Travel insurance may be in the form of an individual, a group, or a blanket policy. (d) Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels if those standards also meet the State’s underwriting standards for inland marine lines of insurance and applicable provisions of § 27–501 of this article.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026