<section article="gin" article_name="Insurance" number="11-101" title_number="11" title_name="Insurance Rating Law" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“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.</text> </level> <level label="c"> <text>“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.</text> </level> <level label="d"> <text>“Rating organization” means a person licensed under § 11-218 of this title.</text> </level> <level label="e"> <text>“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.</text> </level> <level label="f"> <text>“Working day” means a day when the Administration is open for business.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-201" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>The purposes of this subtitle are:</text> <level label="1"> <text>to promote the public welfare by regulating insurance rates so that they are not excessive, inadequate, or unfairly discriminatory; and</text> </level> <level label="2"> <text>to authorize and regulate cooperative action among insurers in rate making and in other matters within the scope of this subtitle.</text> </level> </level> <level label="b"> <text>This subtitle is not intended:</text> <level label="1"> <text>to prohibit or discourage reasonable competition; or</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>This subtitle shall be interpreted liberally to carry out the provisions of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-202" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <text>This subtitle applies to all types of insurers.</text> </level> <level label="2"> <text>Except as provided in subsection (b) of this section, this subtitle applies to:</text> <level label="i"> <text>property insurance;</text> </level> <level label="ii"> <text>casualty insurance;</text> </level> <level label="iii"> <text>surety insurance;</text> </level> <level label="iv"> <text>marine insurance; and</text> </level> <level label="v"> <text>wet marine and transportation insurance.</text> </level> </level> </level> <level label="b"> <text>This subtitle does not apply to:</text> <level label="1"> <text>reinsurance, except as provided in § 11–222 of this subtitle;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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</text> </level> <level label="4"> <text>title insurance, except for §§ 11–218 through 11–227 of this subtitle.</text> </level> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-205" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>All rates shall be made in accordance with the principles set forth in this section.</text> </level> <level label="b"> <text>Uniformity among insurers in matters within the scope of this subtitle is neither required nor prohibited.</text> </level> <level label="c"> <text>Due consideration shall be given to:</text> <level label="1"> <text>past and prospective loss experience within and outside the State;</text> </level> <level label="2"> <text>conflagration and catastrophe hazards, if any;</text> </level> <level label="3"> <text>past and prospective expenses, both countrywide and those specially applicable to the State;</text> </level> <level label="4"> <text>underwriting profits;</text> </level> <level label="5"> <text>contingencies;</text> </level> <level label="6"> <text>investment income from unearned premium reserve and reserve for losses;</text> </level> <level label="7"> <text>dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to policyholders; and</text> </level> <level label="8"> <text>all other relevant factors within and outside the State.</text> </level> </level> <level label="d"> <text>Rates may not be excessive, inadequate, or unfairly discriminatory.</text> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <level label="1"> <text>Risks may be grouped by classifications for the establishment of rates and minimum premiums.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="g"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-206" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Each filing shall state its proposed effective date and shall indicate the character and extent of the coverage contemplated.</text> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>The information provided in support of a filing may include:</text> <level label="i"> <text>the judgment of the filer;</text> </level> <level label="ii"> <text>the filer’s interpretation of any statistical data relied on;</text> </level> <level label="iii"> <text>the experience of other filers; and</text> </level> <level label="iv"> <text>any other relevant factors.</text> </level> </level> </level> <level label="c"> <text>Each filing shall include the experience of the filer.</text> </level> <level label="d"> <text>A filing and any supporting information shall be open to public inspection as soon as filed.</text> </level> <level label="e"> <text>An insurer may satisfy its obligation to make filings by:</text> <level label="1"> <text>being a member of or subscriber to a licensed rating organization that makes filings; and</text> </level> <level label="2"> <text>authorizing the Commissioner to accept filings on its behalf from the rating organization.</text> </level> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>A filing is deemed approved unless disapproved by the Commissioner during the waiting period or any extension of the waiting period.</text> </level> <level label="4"> <text>A filing may be withdrawn or amended by the filer at any time before approval.</text> </level> <level label="5"> <text>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.</text> </level> </level> <level label="h"> <level label="1"> <text>Inland marine risks that by general custom of the business are not written according to manual rates or rating plans need not be filed.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="i"> <text>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.</text> </level> <level label="j"> <level label="1"> <text>In this subsection, “exempt commercial policyholder” means a person that:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>meets any two of the following criteria:</text> <level label="1"> <text>generates annual revenues or sales in excess of $5,000,000;</text> </level> <level label="2"> <text>possesses a net worth in excess of $2,500,000;</text> </level> <level label="3"> <text>employs at least 25 full–time employees;</text> </level> <level label="4"> <text>is a nonprofit organization or public body with an annual budget of at least $5,000,000; or</text> </level> <level label="5"> <text>is a municipal corporation with a population of at least 15,000.</text> </level> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The certification must include:</text> <level label="1"> <text>specific reference to the optional criteria that the insured has satisfied to qualify as an exempt commercial policyholder;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>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.</text> </level> </level> </level> <level label="4"> <text>This subsection does not apply to the filing of workers’ compensation insurance rate and policy forms.</text> </level> <level label="5"> <text>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.</text> </level> <level label="6"> <text>On written request of the Commissioner, an insurer shall file with the Commissioner a form or endorsement issued to an exempt commercial policyholder.</text> </level> <level label="7"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-207" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner shall adopt regulations for the suspension or modification of filing requirements.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-208" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>Unless the filer demonstrates that a proposed rate is not excessive, inadequate, or unfairly discriminatory, the Commissioner may disapprove the filing.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>Disapproval under this subsection does not affect a contract made or issued before the expiration of the period set forth in the notice.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection.</text> </level> <level label="ii"> <text>The Commissioner shall give written notice of the hearing to the filer at least 10 days before the hearing.</text> </level> <level label="iii"> <text>The notice shall specify the matters to be considered at the hearing.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>An application under this subsection shall specify the grounds on which the applicant will rely.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>The Commissioner shall give written notice of the hearing to the applicant and each filer at least 10 days before the hearing.</text> </level> <level label="5"> <text>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.</text> </level> <level label="6"> <text>The Commissioner shall send a copy of an order issued under this subsection to the applicant.</text> </level> <level label="7"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-209" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-210" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="11-211" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>the insurer has filed a proposed rate increase with the Commissioner;</text> </level> <level label="2"> <text>a hearing may be requested with respect to the filing under § 11-208(e) of this subtitle; and</text> </level> <level label="3"> <text>an order, hearing, or refusal of a hearing by the Commissioner may be appealed under Subtitle 5 of this title.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-212" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <text>The Commissioner shall hold a hearing on the action of the filer.</text> </level> <level label="2"> <text>The Commissioner shall give written notice of the hearing to the appellant and filer at least 10 days before the hearing.</text> </level> <level label="3"> <text>After the hearing, the Commissioner may affirm or reverse the action.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-213" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>All homeowner’s insurance rates shall be made in accordance with the principles set forth in this section.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>if the policy has not yet been issued:</text> <level label="1"> <text>the date of the application; or</text> </level> <level label="2"> <text>the proposed effective date of the policy; or</text> </level> </level> <level label="ii"> <text>on renewal of a policy, the effective date of the renewal.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>Subparagraph (i) of this paragraph may not be construed to prevent an insurer from granting a claim–free discount to an insured.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-214" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>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:</text> <level label="1"> <text>defines the policyholder’s rate classifications; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>The statement must be sufficiently clear and specific so that an individual of average intelligence can identify the classifications without making further inquiry.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-215" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>All automobile insurance rates shall be made in accordance with the principles set forth in this section.</text> </level> <level label="b"> <level label="1"> <text>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:</text> <level label="i"> <text>because of a specific claim; or</text> </level> <level label="ii"> <text>because of the insured’s driving record.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>if the policy has not yet been issued:</text> <level label="1"> <text>the date of the application; or</text> </level> <level label="2"> <text>the proposed effective date of the policy; or</text> </level> </level> <level label="ii"> <text>on renewal of a policy, the effective date of the renewal.</text> </level> </level> <level label="3"> <level label="i"> <text>The removal of a discount is not a violation of this subsection.</text> </level> <level label="ii"> <text>Subparagraph (i) of this paragraph may not be construed to prevent an insurer from granting a claim–free discount to an insured.</text> </level> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>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, § 21–810.1, 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.</text> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>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:</text> <level label="1"> <text>is at least 55 years old; and</text> </level> <level label="2"> <text>within the last 2 years, has completed successfully a course in accident prevention:</text> <level label="i"> <text>that is approved by the Motor Vehicle Administration;</text> </level> <level label="ii"> <text>that includes classroom instruction or practice driving of the number of hours that the Motor Vehicle Administration requires; and</text> </level> <level label="iii"> <text>for which the insured has received a certificate that certifies the completion of the course.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-216" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <text>An insurer that uses territory as a factor in establishing automobile insurance rates shall submit a statement to the Commissioner certifying that:</text> <level label="1"> <text>the territories used by the insurer have been reviewed within the previous 3 years; and</text> </level> <level label="2"> <text>use of the territories is actuarially justified.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-218" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>An applicant for a license as a rating organization shall file with its application:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>a list of its members and subscribers;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>a statement of its qualifications as a rating organization.</text> </level> </level> <level label="3"> <text>Within 60 days after an application is filed, the Commissioner shall grant or deny the application wholly or partly.</text> </level> <level label="4"> <text>The Commissioner shall grant the application if the Commissioner finds that:</text> <level label="i"> <text>the applicant is competent, trustworthy, and otherwise qualified to act as a rating organization; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="5"> <text>A license as a rating organization issued under this section expires 3 years after its effective date.</text> </level> <level label="6"> <text>The fee for a license as a rating organization is $25.</text> </level> <level label="7"> <text>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.</text> </level> <level label="8"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Each rating organization shall give notice to subscribers of proposed changes in its rules.</text> </level> <level label="3"> <text>Each rating organization shall provide its rating services without discrimination to its members and subscribers.</text> </level> <level label="4"> <level label="i"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="ii"> <level label="1"> <text>The Commissioner shall review the challenged rule or action of the rating organization at a hearing.</text> </level> <level label="2"> <text>The Commissioner shall give written notice of the hearing to the rating organization and subscriber or insurer at least 10 days before the hearing.</text> </level> </level> <level label="iii"> <text>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.</text> </level> <level label="iv"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>The Commissioner may review cooperative activities and practices among rating organizations and among rating organizations and insurers.</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Rules adopted under this subsection shall require that:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the rating organization shall notify the Commissioner if an insurer fails to provide satisfactory evidence of the correction of the error or omission.</text> </level> </level> <level label="3"> <text>All information submitted for examination under this subsection is confidential.</text> </level> </level> <level label="f"> <level label="1"> <text>A rating organization may subscribe to or purchase actuarial, technical, or other services.</text> </level> <level label="2"> <text>The services shall be available to all members and subscribers without discrimination.</text> </level> </level> <level label="g"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-219" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>An insurer may deviate from the rates filed by a rating organization if:</text> <level label="1"> <text>the insurer has filed the deviation to be applied with the rating organization and Commissioner;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>the deviation is approved by the Commissioner.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-220" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>The Commissioner shall hold a hearing before issuing an order under paragraph (2) of this subsection.</text> </level> <level label="4"> <text>The Commissioner shall give written notice of the hearing to the appellant and rating organization at least 10 days before the hearing.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>In deciding the appeal, the Commissioner shall apply the standards set forth in this subtitle.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-221" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>Each advisory organization shall file with the Commissioner:</text> <level label="1"> <text>a copy of its constitution, articles of agreement or association, or certificate of incorporation and its bylaws, rules, and regulations that govern its activities;</text> </level> <level label="2"> <text>a list of its members;</text> </level> <level label="3"> <text>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</text> </level> <level label="4"> <text>an agreement that the Commissioner may examine the advisory organization in accordance with § 11-225 of this subtitle.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>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:</text> <level label="i"> <text>this section; or</text> </level> <level label="ii"> <text>an order of the Commissioner issued under subsection (b) of this section that involves the statistics or recommendations.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-222" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-225" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <text>At least once every 5 years, the Commissioner shall make an examination of each rating organization licensed in the State.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>The entity examined shall pay the reasonable costs of an examination on presentation to it of a detailed account of the costs.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-226" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The Commissioner periodically may modify the rules and plans adopted under this subsection.</text> </level> <level label="iii"> <text>Each insurer shall use the rules and plans adopted by the Commissioner to record and report its loss and countrywide expense experience.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>In adopting the rules and plans, the Commissioner shall give due consideration:</text> <level label="i"> <text>to the rating systems on file with the Commissioner; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="4"> <text>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.</text> </level> <level label="5"> <level label="i"> <text>The Commissioner may designate one or more rating organizations or other agencies to help in gathering and compiling experience information.</text> </level> <level label="ii"> <text>Subject to reasonable regulations adopted by the Commissioner, the compilations shall be made available to insurers and rating organizations.</text> </level> </level> </level> <level label="b"> <text>The Commissioner may adopt reasonable rules and plans for the interchange of data necessary for the application of rating plans.</text> </level> <level label="c"> <text>To further uniform administration of rate regulatory laws, the Commissioner and each insurer and rating organization may:</text> <level label="1"> <text>exchange information and experience data with each other and with insurance supervisory officials, insurers, and rating organizations in other states; and</text> </level> <level label="2"> <text>consult with them about rate making and the application of rating systems.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-227" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <text>The Commissioner may adopt reasonable rules and regulations necessary to carry out the purposes of this subtitle.</text> </section> <section article="gin" article_name="Insurance" number="11-230" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>An insurer may pay or allow a commission to a licensed insurance producer of the insurer as compensation for procuring business.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-231" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="11-232" title_number="11" title_name="Insurance Rating Law" subtitle_number="2" subtitle_name="Prior Approval Rate Making"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>A penalty imposed under this subsection is in addition to any other penalty provided by law.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>until the time set for an appeal from the order has expired; or</text> </level> <level label="ii"> <text>if an appeal has been taken, until the order has been affirmed.</text> </level> </level> <level label="3"> <text>The Commissioner may determine when the suspension of a license or certificate of authority becomes effective.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection.</text> </level> <level label="3"> <text>The Commissioner shall give written notice of the hearing at least 10 days before the hearing.</text> </level> <level label="4"> <text>The notice shall specify the alleged violation.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-301" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“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.</text> </level> <level label="c"> <text>“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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-302" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>The purposes of this subtitle are:</text> <level label="1"> <text>to protect policyholders and the public against the adverse effect of excessive, inadequate, or unfairly discriminatory rates;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>to provide formal regulatory controls for use if price competition fails;</text> </level> <level label="4"> <text>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</text> </level> <level label="5"> <text>to provide rates that are responsive to competitive market conditions and to improve the availability of insurance in the State.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-303" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>Notwithstanding Subtitle 2 of this title, this subtitle applies to the establishment of rates for all types of insurance except:</text> <level label="1"> <text>life insurance;</text> </level> <level label="2"> <text>annuities;</text> </level> <level label="3"> <text>health insurance;</text> </level> <level label="4"> <text>marine insurance described in § 11–202(b)(2) of this title;</text> </level> <level label="5"> <text>aircraft insurance described in § 11–202(b)(3) of this title;</text> </level> <level label="6"> <text>reinsurance;</text> </level> <level label="7"> <text>title insurance;</text> </level> <level label="8"> <text>medical malpractice insurance;</text> </level> <level label="9"> <text>any form or plan of insurance regulated under § 27–217 of this article; and</text> </level> <level label="10"> <text>surety insurance.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-306" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>The standards set forth in this section apply to the making and use of rates under this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Rates may not be:</text> <level label="i"> <text>excessive or inadequate, as defined under this subtitle; or</text> </level> <level label="ii"> <text>unfairly discriminatory.</text> </level> </level> <level label="2"> <text>Except as provided in paragraph (4) of this subsection, a rate may not be held to be excessive unless:</text> <level label="i"> <text>the rate is unreasonably high for the insurance provided; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>A rate may not be held to be inadequate unless:</text> <level label="i"> <text>the rate is unreasonably low for the insurance provided and continued use of the rate would endanger the solvency of the insurer; or</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="4"> <text>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:</text> <level label="i"> <text>is unreasonably high for the insurance provided; and</text> </level> <level label="ii"> <text>is not actuarially justified based on commonly accepted actuarial principles.</text> </level> </level> <level label="5"> <text>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.</text> </level> </level> <level label="c"> <text>In determining whether rates comply with the standards set forth in subsection (b) of this section, due consideration shall be given to:</text> <level label="1"> <text>past and prospective loss experience within and outside the State;</text> </level> <level label="2"> <text>conflagration or catastrophe hazards;</text> </level> <level label="3"> <text>a reasonable margin for underwriting profit and contingencies;</text> </level> <level label="4"> <text>dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers;</text> </level> <level label="5"> <text>past and prospective expenses, both countrywide and those specially applicable to the State;</text> </level> <level label="6"> <text>investment income earned or realized by insurers both from their unearned premium and from their loss reserve funds; and</text> </level> <level label="7"> <text>all relevant factors within and outside the State.</text> </level> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <level label="1"> <text>Risks may be grouped by classifications for the establishment of rates and minimum premiums.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The standards may measure any difference among risks that have had a direct and substantial effect on losses or expenses.</text> </level> <level label="4"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-307" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>An insurer may itself establish rates and supplementary rate information based on the factors in § 11–306 of this subtitle.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>If an insurer uses rates and supplementary rate information prepared by a rating organization:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>In this subsection, “proprietary rate–related information”:</text> <level label="i"> <text>means a rating model; and</text> </level> <level label="ii"> <text>includes the formulas, algorithms, analyses, and specific weights given to variables used in the model.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>On request and payment of a reasonable charge, a person may obtain copies of a filing and any supporting information.</text> </level> </level> <level label="3"> <level label="i"> <text>Information that an insurer files with the Commissioner and identifies as proprietary rate–related information:</text> <level label="1"> <text>constitutes a trade secret and confidential commercial information;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>is not subject to subpoena served on the Commissioner or any recipient of proprietary rate–related information under subparagraph (iii) of this paragraph.</text> </level> </level> <level label="ii"> <level label="1"> <text>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:</text> </level> <level label="A"> <text>give the insurer written notice of that determination; and</text> </level> <level label="B"> <text>make the material open to public inspection 10 business days after the date the Commissioner gives notice of the determination to the insurer.</text> </level> <level label="2"> <text>The Commissioner may not disclose the material if:</text> </level> <level label="A"> <text>the insurer has not put the rate filing into effect; and</text> </level> <level label="B"> <text>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.</text> </level> </level> <level label="iii"> <text>This paragraph does not prohibit the Commissioner from disclosing an insurer’s proprietary rate–related information:</text> <level label="1"> <text>in furtherance of a regulatory or legal action that the Commissioner undertakes in performing the Commissioner’s duties under this article;</text> </level> <level label="2"> <text>if the recipient enters into a written agreement to maintain the confidentiality of the proprietary rate–related information, to:</text> </level> <level label="A"> <text>an outside consultant that the Commissioner engages to assist the Commissioner in reviewing the insurer’s rate filing;</text> </level> <level label="B"> <text>another state’s insurance regulatory agency;</text> </level> <level label="C"> <text>the National Association of Insurance Commissioners; or</text> </level> <level label="D"> <text>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</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="iv"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="v"> <text>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.</text> </level> <level label="vi"> <text>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.</text> </level> <level label="vii"> <text>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.</text> </level> </level> <level label="4"> <text>This subsection may not be construed to:</text> <level label="i"> <text>authorize an insurer to designate the rating factors used to calculate the premium as proprietary rate–related information; or</text> </level> <level label="ii"> <text>authorize the Commissioner to keep the rating factors confidential.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner may investigate and determine whether or not rates in the State are excessive, inadequate, or unfairly discriminatory.</text> </level> <level label="2"> <text>In an investigation and determination under this subsection, the Commissioner shall give due consideration to the factors specified in § 11–306 of this subtitle.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-308" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The order may provide prospectively for premium adjustment of each policy then in force.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>An order issued under this subsection expires 1 year after its effective date unless it is rescinded earlier by the Commissioner.</text> </level> </level> <level label="b"> <level label="1"> <text>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:</text> <level label="i"> <text>the rate is in violation of § 11-306 of this subtitle;</text> </level> <level label="ii"> <text>unless the order of suspension is issued, certain insureds will suffer irreparable harm;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>the order of suspension will not cause substantial harm to the public.</text> </level> </level> <level label="2"> <text>Unless the insurer waives a hearing, the Commissioner:</text> <level label="i"> <text>shall hold a hearing within 15 working days after issuing the order of suspension; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>In determining the competitiveness of a market, the Commissioner shall consider all relevant factors including:</text> <level label="1"> <text>the number of insurers actively engaged in providing coverage in the market;</text> </level> <level label="2"> <text>market shares;</text> </level> <level label="3"> <text>changes in market shares; and</text> </level> <level label="4"> <text>ease of entry.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The Commissioner may require that an insurer file supporting data as provided under § 11-312 of this subtitle.</text> </level> </level> <level label="3"> <text>The Commissioner shall make each determination on the basis of findings of fact and conclusions of law.</text> </level> <level label="4"> <text>If the Commissioner disapproves a rate:</text> <level label="i"> <text>the disapproval may not take effect until at least 15 days after the date of the order of disapproval; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="d"> <text>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:</text> <level label="1"> <text>the rate has been filed with the Commissioner; and</text> </level> <level label="2"> <text>the Commissioner has not disapproved the rate within 30 days after it was filed.</text> </level> </level> <level label="e"> <level label="1"> <text>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:</text> <level label="i"> <text>on request of the insurer, shall specify interim rates for the insurer that are high enough to protect the interests of all parties; and</text> </level> <level label="ii"> <text>may order that a specified part of the premiums be placed in a special reserve established by the insurer.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The Commissioner may not require refunds to policyholders if the refunds are minimal.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-309" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>The Commissioner shall approve or disapprove the filing during the waiting period or any extension of the waiting period.</text> </level> <level label="2"> <text>The filing is deemed approved unless disapproved by the Commissioner during the waiting period or any extension of the waiting period.</text> </level> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-310" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <level label="1"> <text>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:</text> <level label="i"> <text>competition is not an effective regulator of the rates charged;</text> </level> <level label="ii"> <text>a substantial number of insurers are competing irresponsibly through the rates charged; or</text> </level> <level label="iii"> <text>there are widespread violations of this subtitle.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>A rule adopted under this section may not remain in effect for more than 1 year after it is adopted.</text> </level> <level label="2"> <text>The Commissioner may renew a rule adopted under this section after a hearing and appropriate findings under this section.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-311" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="11-312" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The supporting data shall include:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>the filer’s interpretation of any statistical data relied on;</text> </level> <level label="iii"> <text>a description of the actuarial and statistical methods used in setting the rates; and</text> </level> <level label="iv"> <text>any other relevant matters required by the Commissioner.</text> </level> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-313" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <text>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:</text> <level label="1"> <text>the insurer has filed a proposed rate increase with the Commissioner;</text> </level> <level label="2"> <text>a hearing may be requested with respect to the filing; and</text> </level> <level label="3"> <text>an order, hearing, or refusal of a hearing by the Commissioner may be appealed under Subtitle 5 of this title.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-314" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>An application under this subsection shall set forth the basis for the appeal and the grounds on which the applicant will rely.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner shall review the application for appeal.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The Commissioner shall give written notice of the hearing to the applicant and rating organization or insurer at least 10 days before the hearing.</text> </level> <level label="4"> <text>After the hearing, the Commissioner shall affirm or reverse the action.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-315" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>All homeowner’s insurance rates shall be made in accordance with the principles set forth in this section.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>if the policy has not yet been issued:</text> <level label="1"> <text>the date of the application; or</text> </level> <level label="2"> <text>the proposed effective date of the policy; or</text> </level> </level> <level label="ii"> <text>on renewal of a policy, the effective date of the renewal.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>Subparagraph (i) of this paragraph may not be construed to prevent an insurer from granting a claim–free discount to an insured.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-317" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>In this section, “increase in a policy premium” includes an increase in premium due to:</text> <level label="1"> <text>a surcharge;</text> </level> <level label="2"> <text>retiering or other reclassification of an insured; or</text> </level> <level label="3"> <text>removal or reduction of a discount.</text> </level> </level> <level label="b"> <text>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:</text> <level label="1"> <text>defines the policyholder’s rate classifications;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="c"> <text>The statement must be sufficiently clear and specific so that an individual of average intelligence can identify the classifications without making further inquiry.</text> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-318" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>All automobile insurance rates shall be made in accordance with the principles set forth in this section.</text> </level> <level label="b"> <level label="1"> <text>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:</text> <level label="i"> <text>because of a specific claim; or</text> </level> <level label="ii"> <text>because of the insured’s driving record.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>if the policy has not yet been issued:</text> <level label="1"> <text>the date of the application; or</text> </level> <level label="2"> <text>the proposed effective date of the policy; or</text> </level> </level> <level label="ii"> <text>on renewal of a policy, the effective date of the renewal.</text> </level> </level> <level label="3"> <level label="i"> <text>The removal of a discount is not a violation of this subsection.</text> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>Subparagraph (i) of this paragraph may not be construed to prevent an insurer from granting a claim–free discount to an insured.</text> </level> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>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, § 21–810.1, 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.</text> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>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:</text> <level label="1"> <text>is at least 55 years old; and</text> </level> <level label="2"> <text>within the last 2 years, has completed successfully a course in accident prevention:</text> <level label="i"> <text>that is approved by the Motor Vehicle Administration;</text> </level> <level label="ii"> <text>that includes classroom instruction or practice driving of the number of hours that the Motor Vehicle Administration requires; and</text> </level> <level label="iii"> <text>for which the insured has received a certificate that certifies the completion of the course.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-319" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <text>An insurer that uses territory as a factor in establishing automobile insurance rates shall submit a statement to the Commissioner certifying that:</text> <level label="1"> <text>the territories used by the insurer have been reviewed within the previous 3 years; and</text> </level> <level label="2"> <text>use of the territories is actuarially justified.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-321" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>In Part IV of this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Affiliate” has the meaning stated in § 7-101 of this article.</text> </level> <level label="c"> <text>“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.</text> </level> <level label="d"> <text>“Private passenger premium” means the direct written premium derived from the sale of private passenger motor vehicle insurance policies in a calendar year.</text> </level> <level label="e"> <text>“Subsidiary” has the meaning stated in § 7-101 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-322" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>Part IV of this subtitle applies to each authorized insurer that writes private passenger motor vehicle insurance in the State.</text> </level> <level label="b"> <text>Except as expressly provided otherwise, Part IV of this subtitle does not apply to the Maryland Automobile Insurance Fund.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-323" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>The data required under this section shall:</text> <level label="1"> <text>be filed with the Commissioner in the form required by the Commissioner; and</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>in the State as a whole; and</text> </level> <level label="ii"> <text>in Baltimore City.</text> </level> </level> </level> <level label="c"> <text>The data shall be submitted by each rating territory or each zip code, or both.</text> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-324" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <text>On or before August 15 of each year, the Commissioner shall:</text> <level label="1"> <text>prepare a list of insurers that are major insurers;</text> </level> <level label="2"> <text>compute each insurer’s market share in the State in the preceding calendar year;</text> </level> <level label="3"> <text>notify in writing each insurer that has been designated as a major insurer; and</text> </level> <level label="4"> <text>compute each insurer’s market share in Baltimore City.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-325" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>The Commissioner shall review the marketing plan to determine whether the plan will achieve the goal stated in subsection (b) of this section.</text> </level> <level label="2"> <text>A marketing plan is deemed approved unless disapproved by the Commissioner within 30 days after submission.</text> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="4"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>On or before September 15 of each year in which a request is filed, the Commissioner shall determine whether the exemption should be granted.</text> </level> </level> <level label="e"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Commissioner shall exempt from the requirements of this section an insurer that:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>uniformly requires eligibility for that club, group, or organization as a condition of providing insurance.</text> </level> </level> <level label="2"> <text>On or before October 1 of each year, each major insurer exempted under this subsection shall file a marketing plan for Baltimore City.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>This section does not authorize the Commissioner to require that an insurer place an insurance producer in a particular location or jurisdiction.</text> </level> <level label="h"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-326" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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:</text> <level label="1"> <text>shall be considered confidential commercial information;</text> </level> <level label="2"> <text>shall be kept confidential by the Commissioner; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <text>The Commissioner:</text> <level label="1"> <text>may release a list of the names of all insurers designated as major insurers; and</text> </level> <level label="2"> <text>may not release the particular market share of a major insurer in Baltimore City unless authorized by the insurer.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-329" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>Each workers’ compensation insurer shall:</text> <level label="1"> <text>be a member of a workers’ compensation rating organization; and</text> </level> <level label="2"> <text>adhere to the policy forms filed by the rating organization.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>An insurer may develop subclassifications of the uniform classification system on which a rate may be made.</text> </level> <level label="ii"> <text>Any subclassification developed under subparagraph (i) of this paragraph shall be filed with the Commissioner at least 30 days before its use.</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>A tiered rating plan under subparagraph (i) of this paragraph shall:</text> <level label="1"> <text>establish discrete tiers for the acceptance of risks based on defined risk attributes that:</text> </level> <level label="A"> <text>are not arbitrary, capricious, or unfairly discriminatory; and</text> </level> <level label="B"> <text>are reasonably related to the insurer’s business and economic purposes; and</text> </level> <level label="2"> <text>require that each insured be placed in the highest quality tier for which that insured qualifies.</text> </level> </level> <level label="iii"> <text>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.</text> </level> <level label="iv"> <text>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.</text> </level> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>In writing and reporting its business, each workers’ compensation insurer shall adhere to the approved rules and experience rating plan.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="e"> <text>The experience rating plan methodology required under § 11–330(d)(4) of this subtitle shall be based on:</text> <level label="1"> <text>reasonable eligibility standards;</text> </level> <level label="2"> <text>adequate incentives for loss prevention; and</text> </level> <level label="3"> <text>sufficient premium differentials so as to encourage safety.</text> </level> </level> <level label="f"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <level label="i"> <text>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:</text> <level label="1"> <text>an alcohol and drug testing program;</text> </level> <level label="2"> <text>an employee education program on alcohol and drug abuse;</text> </level> <level label="3"> <text>a supervisor education program on alcohol and drug abuse;</text> </level> <level label="4"> <text>an employee assistance program that includes referrals of employees for appropriate diagnosis, treatment, and assistance;</text> </level> <level label="5"> <text>a program requiring an employee who has caused or contributed to an accident while at work to undergo alcohol or drug testing; and</text> </level> <level label="6"> <text>any other program that the insurer deems effective to encourage an alcohol– and drug–free workplace.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="5"> <text>An insurer may file a rating plan that provides for retrospective premium adjustments based on an insured’s past experience.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-330" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <level label="i"> <text>Except as otherwise provided in this subsection, the effective date of a workers’ compensation insurance filing is the date specified in the filing.</text> </level> <level label="ii"> <text>The effective date of a workers’ compensation insurance filing may not be earlier than 30 days after:</text> <level label="1"> <text>the date on which the Commissioner receives the filing; or</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>A filing is deemed approved unless disapproved by the Commissioner during the waiting period or any extension of the waiting period.</text> </level> </level> <level label="d"> <text>Subject to approval or disapproval under subsection (c) of this section, each workers’ compensation rating organization shall file with the Commissioner:</text> <level label="1"> <text>workers’ compensation rates and rating plans that are limited to provision for claim payment;</text> </level> <level label="2"> <text>each workers’ compensation policy form to be used by its members or subscribers;</text> </level> <level label="3"> <text>the uniform classification;</text> </level> <level label="4"> <text>the uniform experience rating plan and rules; and</text> </level> <level label="5"> <text>any other information that the Commissioner requests and is otherwise entitled to receive under this subtitle.</text> </level> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-332" future_version_removed="true" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating" /> <section article="gin" article_name="Insurance" number="11-333" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>An advisory organization has the same authority and functions under this subtitle as under § 11-221 of this title.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-334" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <level label="1"> <text>The Commissioner may review cooperative activities and practices among rating organizations and among rating organizations and insurers.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-337" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>An insurer may not be required to record or report its experience on a classification basis that is inconsistent with its own rating system.</text> </level> <level label="3"> <text>The Commissioner may designate one or more rating organizations to help in gathering and compiling experience information.</text> </level> </level> <level label="b"> <text>The Commissioner and each insurer and rating organization may:</text> <level label="1"> <text>exchange information and experience data with each other and with insurance supervisory officials, insurers, and rating organizations in other states; and</text> </level> <level label="2"> <text>consult with them about rate making and the application of rating systems.</text> </level> </level> <level label="c"> <text>Rating organizations shall collect all relevant information from member insurers.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-341" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="11-342" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>An insurer or rating organization may not:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>make an agreement with another insurer, rating organization, or other person to unreasonably restrain trade;</text> </level> <level label="4"> <text>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</text> </level> <level label="5"> <text>make an agreement with another insurer or rating organization to refuse to deal with a person in connection with the sale of insurance.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>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:</text> <level label="1"> <text>use some or all of its services;</text> </level> <level label="2"> <text>adhere to its rates, rating plan, rating systems, underwriting rules, or policy forms; or</text> </level> <level label="3"> <text>prevent an insurer from acting independently.</text> </level> </level> <level label="f"> <level label="1"> <text>The Commissioner shall disapprove a rate in violation of this section in accordance with the procedures required by § 11-308(a) of this subtitle.</text> </level> <level label="2"> <text>A person that violates this section is subject to the penalties provided in § 11-344 of this subtitle.</text> </level> </level> <level label="g"> <text>The Commissioner may maintain an action to enjoin a violation of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-343" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>A person that violates this section:</text> <level label="1"> <text>is subject to the penalties provided in § 11-344 of this subtitle; and</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-344" title_number="11" title_name="Insurance Rating Law" subtitle_number="3" subtitle_name="Competitive Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <level label="1"> <text>The Commissioner may suspend, revoke, or refuse to renew a license or certificate of authority for a violation of this subtitle.</text> </level> <level label="2"> <text>The Commissioner may determine when the suspension or revocation of a license or certificate of authority becomes effective.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection.</text> </level> <level label="3"> <text>The Commissioner shall give written notice of the hearing to the person at least 10 days before the hearing.</text> </level> <level label="4"> <text>The notice shall specify the alleged violation.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-401" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <level label="a"> <text>This subtitle applies to all kinds and classes of insurance that:</text> <level label="1"> <text>insure or guarantee titles to real or leasehold property or an estate in real or leasehold property;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>insure or guarantee the validity, priority, and status of liens on real or leasehold property or an estate in real or leasehold property; or</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="b"> <text>This subtitle applies to a person that makes guarantees or issues insurance described in subsection (a) of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-402" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <level label="a"> <text>All title insurance rates shall be made in accordance with this section.</text> </level> <level label="b"> <text>Rates shall be reasonable and adequate for the class of risks to which they apply.</text> </level> <level label="c"> <text>Rates may not discriminate unfairly between risks that involve essentially the same hazards and expense elements.</text> </level> <level label="d"> <text>Due consideration shall be given to:</text> <level label="1"> <text>past and prospective loss experience within and outside the State;</text> </level> <level label="2"> <text>a reasonable margin for profit and contingencies;</text> </level> <level label="3"> <text>the cost of participating insurance;</text> </level> <level label="4"> <text>the percentage to be allocated to reserve;</text> </level> <level label="5"> <text>operating expenses; and</text> </level> <level label="6"> <text>all other relevant factors fairly attributable to the business of title insurance.</text> </level> </level> <level label="e"> <level label="1"> <text>Guarantees may be grouped by classifications for the establishment of rates and minimum premiums.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-403" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>Each filing shall indicate the character or extent of coverage contemplated under the rates and premiums for which it is made.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>A title insurer may satisfy its obligation to make filings by:</text> <level label="1"> <text>being a member of or a subscriber to a licensed title rating organization that makes filings; and</text> </level> <level label="2"> <text>authorizing the Commissioner to accept filings on its behalf from the title rating organization.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-404" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>As soon as reasonably possible after a filing is made, the Commissioner shall approve or disapprove the filing in writing.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commissioner shall hold a hearing to review the approval or disapproval of a filing under this section if:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="2"> <text>A hearing under this subsection shall be held within 30 days after the occurrence of an action specified in paragraph (1) of this subsection.</text> </level> <level label="3"> <text>The Commissioner shall give written notice of the hearing to all interested parties.</text> </level> <level label="4"> <text>The Commissioner may confirm, modify, change, or rescind any previous action, if warranted by the facts shown at the hearing.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-405" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>The financial data to be provided shall include:</text> <level label="1"> <text>rates, taxes, general expenses, allocated and unallocated loss adjustment expenses, licenses, and fees; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>The information to be provided under this section shall be supplied on forms provided by the Commissioner.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-406" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <text>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:</text> <level label="1"> <text>exchange information and experience data with each other, with insurance supervisory officials and insurers in other states, and with national organizations and associations; and</text> </level> <level label="2"> <text>consult and cooperate with them about rate and premium making and forms of contracts, policies, and guarantees of insurance.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-407" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>A title insurer may pay or allow a commission to a licensed insurance producer of the title insurer as compensation for procuring business.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-408" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="11-409" title_number="11" title_name="Insurance Rating Law" subtitle_number="4" subtitle_name="Title Insurance Rating"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>A penalty imposed under this subsection is in addition to any other penalty provided by law.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner may not suspend the certificate of authority of a title insurer for failure to comply with an order:</text> <level label="i"> <text>until the time set for an appeal from the order has expired; or</text> </level> <level label="ii"> <text>if an appeal has been taken, until the order has been affirmed.</text> </level> </level> <level label="3"> <text>The Commissioner may determine when the suspension of a certificate of authority becomes effective.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection.</text> </level> <level label="3"> <text>The Commissioner shall give written notice of the hearing to the person at least 10 days before the hearing.</text> </level> <level label="4"> <text>The notice shall specify the alleged violation.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-501" title_number="11" title_name="Insurance Rating Law" subtitle_number="5" subtitle_name="Hearings and Appeals"> <level label="a"> <level label="1"> <text>This subtitle governs hearings, orders, and appeals in matters arising under this title.</text> </level> <level label="2"> <text>Sections 2-210 through 2-215 of this article do not apply to rating and rating organizations.</text> </level> <level label="3"> <text>Each order, decision, ruling, or finding of the Commissioner under this title is subject to judicial review under this subtitle.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, an order, decision, ruling, or finding of the Commissioner under § 11-344 of this title:</text> <level label="1"> <text>is not subject to judicial review under this subtitle; and</text> </level> <level label="2"> <text>is subject to judicial review in accordance with § 2-215 of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-502" title_number="11" title_name="Insurance Rating Law" subtitle_number="5" subtitle_name="Hearings and Appeals"> <level label="a"> <text>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.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner shall give written notice of the time and place of the hearing at least 10 days before the hearing.</text> </level> </level> <level label="c"> <level label="1"> <text>The hearing shall be concluded within 15 days after commencement of the hearing.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>Within 20 days after the conclusion of a hearing under this section, the Commissioner shall:</text> <level label="i"> <text>issue an order that affirms, reverses, or modifies the challenged order or decision; and</text> </level> <level label="ii"> <text>give a copy of the order to all interested parties.</text> </level> </level> <level label="2"> <text>The order shall:</text> <level label="i"> <text>state the Commissioner’s reasons for affirming, reversing, or modifying the challenged order or decision; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <level label="i"> <text>Any interested party may file proposed findings of fact with the Commissioner.</text> </level> <level label="ii"> <text>The Commissioner may accept or reject the proposed findings of fact.</text> </level> </level> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>This subtitle does not require the observance of formal rules of pleading or evidence at any hearing.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-503" title_number="11" title_name="Insurance Rating Law" subtitle_number="5" subtitle_name="Hearings and Appeals"> <level label="a"> <text>An order or decision of the Commissioner under this title is subject to judicial review by appeal to the Circuit Court for Baltimore City.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>If an appeal is not commenced under paragraph (1) of this subsection, the right to appeal no longer exists.</text> </level> <level label="3"> <text>The Commissioner shall be made a party to each appeal under this section.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The official record:</text> <level label="i"> <text>shall be certified by the Commissioner;</text> </level> <level label="ii"> <text>shall include a copy of:</text> <level label="1"> <text>all proceedings;</text> </level> <level label="2"> <text>the findings and order of the Commissioner; and</text> </level> <level label="3"> <text>a transcript of any testimony and exhibits or records; and</text> </level> </level> <level label="iii"> <text>may be in typewritten form.</text> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Paragraph (1) does not apply if the ruling, order, or decision approves or allows a filing of an insurer or rating organization.</text> </level> </level> <level label="e"> <level label="1"> <text>Within 60 days after the date of the filing of a notice of appeal, the Circuit Court for Baltimore City shall:</text> <level label="i"> <text>hear and decide the appeal; and</text> </level> <level label="ii"> <text>affirm, reverse, or modify the order or decision of the Commissioner from which the appeal is taken.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>is not supported by the preponderance of the evidence on consideration of the record as a whole; or</text> </level> <level label="ii"> <text>is not in accordance with law.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner shall be made a party to each appeal to the Appellate Court of Maryland under paragraph (1) of this subsection.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-601" title_number="11" title_name="Insurance Rating Law" subtitle_number="6" subtitle_name="Health Benefit Plan Premium Rate Review"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Carrier” means a person that:</text> <level label="1"> <text>offers a health benefit plan in the State; and</text> </level> <level label="2"> <text>is:</text> <level label="i"> <text>an insurer;</text> </level> <level label="ii"> <text>a nonprofit health service plan; or</text> </level> <level label="iii"> <text>a health maintenance organization.</text> </level> </level> </level> <level label="c"> <text>“Contract holder” means a person to which a carrier has issued a health benefit plan.</text> </level> <level label="d"> <level label="1"> <text>“Health benefit plan” means:</text> <level label="i"> <text>a health insurance contract, a nonprofit health service plan contract, or a health maintenance organization contract that includes benefits for medical care; or</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>“Health benefit plan” does not include:</text> <level label="i"> <text>one or more, or any combination of the following:</text> <level label="1"> <text>coverage only for accident or disability income insurance;</text> </level> <level label="2"> <text>coverage issued as a supplement to liability insurance;</text> </level> <level label="3"> <text>liability insurance, including general liability insurance and automobile liability insurance;</text> </level> <level label="4"> <text>workers’ compensation or similar insurance;</text> </level> <level label="5"> <text>automobile medical payment insurance;</text> </level> <level label="6"> <text>credit–only insurance;</text> </level> <level label="7"> <text>coverage for on–site medical clinics; and</text> </level> <level label="8"> <text>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;</text> </level> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>limited scope dental or vision benefits;</text> </level> <level label="2"> <text>benefits for long–term care, nursing home care, home health care, community–based care, or any combination of these benefits; and</text> </level> <level label="3"> <text>other similar limited benefits as specified in federal regulations issued pursuant to P.L. 104–191;</text> </level> </level> <level label="iii"> <text>the following benefits if offered as independent, noncoordinated benefits:</text> <level label="1"> <text>coverage only for a specified disease or illness; and</text> </level> <level label="2"> <text>hospital indemnity or other fixed indemnity insurance; or</text> </level> </level> <level label="iv"> <text>the following benefits if offered as a separate policy, certificate, or contract of insurance:</text> <level label="1"> <text>Medicare supplemental health insurance, as defined in § 1882(g)(1) of the Social Security Act;</text> </level> <level label="2"> <text>coverage supplemental to the coverage provided under Chapter 55 of Title 10, United States Code; and</text> </level> <level label="3"> <text>similar supplemental coverage provided to coverage under an employer sponsored plan.</text> </level> </level> </level> </level> <level label="e"> <text>“Medical care” means:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>transportation primarily for and essential to medical care described in item (1) of this subsection.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-602" title_number="11" title_name="Insurance Rating Law" subtitle_number="6" subtitle_name="Health Benefit Plan Premium Rate Review"> <text>This subtitle applies to a carrier that issues or delivers a health benefit plan in the State.</text> </section> <section article="gin" article_name="Insurance" number="11-603" title_number="11" title_name="Insurance Rating Law" subtitle_number="6" subtitle_name="Health Benefit Plan Premium Rate Review"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>Any applicable premium rate or premium rate change of a carrier subject to this subtitle shall be filed with the Commissioner:</text> <level label="i"> <text>for insurers, in accordance with § 12–203 of this article and regulations adopted under Title 31, Subtitle 10 of the Code of Maryland Regulations;</text> </level> <level label="ii"> <text>for nonprofit health service plans, in accordance with § 14–126 of this article; and</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>In determining whether to disapprove or modify a premium rate filing of a carrier, the Commissioner shall consider, to the extent appropriate:</text> <level label="1"> <text>past and prospective loss experience in and outside the State;</text> </level> <level label="2"> <text>underwriting practice and judgment;</text> </level> <level label="3"> <text>a reasonable margin for reserve needs;</text> </level> <level label="4"> <text>past and prospective expenses, both countrywide and those specifically applicable to the State; and</text> </level> <level label="5"> <text>any other relevant factors in and outside the State.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>Each premium rate filing and any supporting information filed under this subtitle shall be open to public inspection as soon as filed.</text> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>On request and payment of a reasonable fee, a person may obtain copies of a premium rate filing and any supporting information.</text> </level> </level> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <level label="1"> <text>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:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>states when, within a reasonable period after the order, the premium rate filing will no longer be effective.</text> </level> </level> <level label="2"> <level label="i"> <text>The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection.</text> </level> <level label="ii"> <text>The Commissioner shall give written notice of the hearing to the carrier at least 10 days before the hearing.</text> </level> <level label="iii"> <text>The written notice shall specify the matters to be considered at the hearing.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> <level label="f"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-604" title_number="11" title_name="Insurance Rating Law" subtitle_number="6" subtitle_name="Health Benefit Plan Premium Rate Review"> <text>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. </text> </section> <section article="gin" article_name="Insurance" number="11-701" title_number="11" title_name="Insurance Rating Law" subtitle_number="7" subtitle_name="Long–term Care Insurance Premium Rate Review"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“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.</text> </level> <level label="c"> <text>“Certificate” has the meaning stated in § 18–101 of this article.</text> </level> <level label="d"> <text>“Long–term care insurance” has the meaning stated in § 18–101 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-702" title_number="11" title_name="Insurance Rating Law" subtitle_number="7" subtitle_name="Long–term Care Insurance Premium Rate Review"> <text>The Commissioner shall provide information on the Administration’s Web site describing:</text> <level label="1"> <text>the factors that carriers use to determine premium rates for policies or contracts of long–term care insurance; and</text> </level> <level label="2"> <text>the process and factors that the Administration uses in reviewing and approving premium rates for policies or contracts of long–term care insurance.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-703" title_number="11" title_name="Insurance Rating Law" subtitle_number="7" subtitle_name="Long–term Care Insurance Premium Rate Review"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>In determining whether to disapprove or modify a premium rate filing of a carrier, the Commissioner shall consider, to the extent appropriate:</text> <level label="1"> <text>past and prospective loss experience in and outside the State;</text> </level> <level label="2"> <text>underwriting practice and judgment;</text> </level> <level label="3"> <text>a reasonable margin for reserve needs;</text> </level> <level label="4"> <text>past and prospective expenses, both countrywide and those specifically applicable to the State; and</text> </level> <level label="5"> <text>any other relevant factors in and outside the State.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>Each premium rate filing and any supporting information filed under this subtitle shall be open to public inspection as soon as filed.</text> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>On request and payment of a reasonable fee, a person may obtain copies of a premium rate filing and any supporting information.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="11-704" title_number="11" title_name="Insurance Rating Law" subtitle_number="7" subtitle_name="Long–term Care Insurance Premium Rate Review"> <level label="a"> <text>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.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="11-801" title_number="11" title_name="Insurance Rating Law" subtitle_number="8" subtitle_name="Travel Insurance Premium Rating Review"> <level label="a"> <text>In this section, “travel insurance” has the meaning stated in § 10–101 of this article.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>Travel insurance may be in the form of an individual, a group, or a blanket policy.</text> </level> <level label="d"> <text>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.</text> </level> </section>