This subtitle applies to all kinds and classes of insurance that: insure or guarantee titles to real or leasehold property or an estate in real or leasehold property; 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; insure or guarantee the validity, priority, and status of liens on real or leasehold property or an estate in real or leasehold property; or 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. This subtitle applies to a person that makes guarantees or issues insurance described in subsection (a) of this section.

All title insurance rates shall be made in accordance with this section. Rates shall be reasonable and adequate for the class of risks to which they apply. Rates may not discriminate unfairly between risks that involve essentially the same hazards and expense elements. Due consideration shall be given to: past and prospective loss experience within and outside the State; a reasonable margin for profit and contingencies; the cost of participating insurance; the percentage to be allocated to reserve; operating expenses; and all other relevant factors fairly attributable to the business of title insurance. Guarantees may be grouped by classifications for the establishment of rates and minimum premiums. 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.

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. 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. Each filing shall indicate the character or extent of coverage contemplated under the rates and premiums for which it is made. 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. A title insurer may satisfy its obligation to make filings by: being a member of or a subscriber to a licensed title rating organization that makes filings; and authorizing the Commissioner to accept filings on its behalf from the title rating organization.

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. As soon as reasonably possible after a filing is made, the Commissioner shall approve or disapprove the filing in writing. 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. 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. 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. The Commissioner shall hold a hearing to review the approval or disapproval of a filing under this section if: 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; 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 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. A hearing under this subsection shall be held within 30 days after the occurrence of an action specified in paragraph (1) of this subsection. The Commissioner shall give written notice of the hearing to all interested parties. The Commissioner may confirm, modify, change, or rescind any previous action, if warranted by the facts shown at the hearing.

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. The financial data to be provided shall include: rates, taxes, general expenses, allocated and unallocated loss adjustment expenses, licenses, and fees; and 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. The information to be provided under this section shall be supplied on forms provided by the Commissioner.

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: exchange information and experience data with each other, with insurance supervisory officials and insurers in other states, and with national organizations and associations; and consult and cooperate with them about rate and premium making and forms of contracts, policies, and guarantees of insurance.

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. 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. A title insurer may pay or allow a commission to a licensed insurance producer of the title insurer as compensation for procuring business.

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.

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. 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. A penalty imposed under this subsection is in addition to any other penalty provided by law. 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. The Commissioner may not suspend the certificate of authority of a title insurer for failure to comply with an order: until the time set for an appeal from the order has expired; or if an appeal has been taken, until the order has been affirmed. The Commissioner may determine when the suspension of a certificate of authority becomes effective. 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. 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. The Commissioner shall hold a hearing before issuing an order under paragraph (1) of this subsection. The Commissioner shall give written notice of the hearing to the person at least 10 days before the hearing. The notice shall specify the alleged violation.