Insurance (GIN) — Title 2. Maryland Insurance Administration

life insurance and health insurance;

property insurance and casualty insurance;

audit and examination;

insurance professions;

consumer affairs; and

insurance fraud.

establish other areas of responsibility in the Administration; and

reorganize or abolish areas of responsibility as necessary to fulfill effectively the duties of the Commissioner.

malfeasance;

incompetence; or

failure to carry out the duties of office in a manner consistent with the regulatory purpose and requirements of this article.

exercise the powers and perform the duties of the Administration under this article;

organize the Administration to function efficiently and to serve the public; and

establish, in the Administration, the units necessary for the exercise of the powers and performance of the duties of the Administration.

if the office of the Commissioner is vacant; or

if for any reason the Commissioner is absent or unable to exercise the powers and perform the duties of office.

perform the actuarial duties of the Administration;

examine or help to examine insurers; and

perform any other duties that the Commissioner assigns.

examine and audit the annual statements of all authorized insurers;

examine and audit the books, accounts, and affairs of the Administration; and

perform any other auditing that the Commissioner directs.

a principal counsel who is an assistant Attorney General; and

other assistant Attorneys General, including assistant Attorneys General specifically assigned to the Fraud Division, as provided by the State budget.

shall specify the amount of any administrative charge required under this subsection and the manner in which the charge will be collected;

shall limit the administrative charge to the cost to the contractor of providing the service specified by the contract; and

may require the contractor to collect any fees required under this article and remit them to the General Fund of the State.

review the proposed changes; and

at least 15 days before the effective date of the proposed changes, advise the Commissioner whether the changes would have an adverse effect on comparable State jobs.

compile and keep in the office of the Commissioner a set of current regulations adopted under this article; and

make a copy of the regulations for anyone who asks for one.

may not recommend specific insurers or insurance producers; but

may provide to callers educational material, including a rate guide and a list of insurers and insurance producers.

the number of complaints received that relate to insurance fraud, the nature of the complaints, and the resolution of the complaints;

the number of complaints and cases referred to a State’s Attorney and the resolution of the complaints or cases;

the number of complaints and cases referred to the Office of the Attorney General and the resolution of the complaints or cases;

the number of calls made to the insurance fraud hot line;

the number of complaints received from persons regulated by the Commissioner;

the number of cases received from the Workers’ Compensation Commission under § 9-310.2 of the Labor and Employment Article and the resolution of the cases;

the total number of cases, by type of insurance fraud; and

the number and percentage of cases that result in the imposition of civil or criminal penalties;

application fee for initial certificate of authority, including filing the application, articles of incorporation and other charter documents, except as provided in item (2) of this subsection, bylaws, financial statement, examination report, power of attorney to the Commissioner, and all other documents and filings in connection with the application    $1,000

fee for initial certificate of authority    $200

fee for annual renewal of certificate of authority for all foreign insurers and for domestic insurers with their home or executive office in the State...........................................................................................................................$500

fee for annual renewal of certificate of authority for domestic insurers with their home or executive office outside the State, except those domestic insurers that had their home or executive office outside the State before January 1, 1929:

reinstatement of certificate of authority    $500

fee for filing the articles of incorporation with the Commissioner for approval    $25

fee for amendment of the articles of incorporation    $10

application fee    $25

managing general agent certificate of qualification:

surplus lines broker certificate of qualification:

public adjuster license:

adviser license:

insurance producer license:

SHOP Exchange navigator license:

SHOP Exchange enrollment permit:

application fee    $25

fee for initial approval    $1,000

annual renewal fee    $1,000

fee for initial eligibility    $1,000

annual fee for continued eligibility    $1,000

an authorized insurer that provides health insurance in the State;

a nonprofit health service plan;

a health maintenance organization;

a dental plan organization; or

except for a managed care organization as defined in Title 15, Subtitle 1 of the Health - General Article, any other person that provides health benefit plans subject to regulation by the State.

“Health benefit plan” means:

“Health benefit plan” does not include one or more, or any combination of the following:

“Premium” has the meaning stated in § 1-101 of this article to the extent it is allocable to health insurance policies or contracts issued or delivered in this State.

“Premium” includes any amounts paid to a health maintenance organization as compensation for providing to members and subscribers the services specified in Title 19, Subtitle 7 of the Health - General Article to the extent the amounts are allocable to this State.

with an appropriation from the Fund approved by the General Assembly in the annual State budget; or

by the budget amendment procedure provided for in § 7-209 of the State Finance and Procurement Article.

If, in any given fiscal year, the amount of the health care regulatory assessment revenue collected by the Commissioner and deposited into the Fund exceeds the actual expenditures incurred by the Administration for the implementation of § 2-303.1 of this title and Title 15, Subtitles 10A, 10B, and 10C of this article, the excess amount shall be carried forward within the Fund for the purpose of reducing the assessment imposed by the Administration for the following fiscal year.

If, in any given fiscal year, the amount of the health care regulatory assessment revenue collected by the Commissioner and deposited into the Fund is insufficient to cover the actual expenditures incurred by the Administration to implement § 2-303.1 of this title and Title 15, Subtitles 10A, 10B, and 10C of this article because of an unforeseen emergency and expenditures are made in accordance with the budget amendment procedure provided for in § 7-209 of the State Finance and Procurement Article, an additional health care regulatory assessment may be made.

the General Fund of the State; or

a special fund of the State, unless otherwise provided by law.

§§ 4–113(d), 4–212, 10–126(c), 11–232, 14–140, 23–208, 23–506, 26–502, 27–305, and 27–408 of this article; and

§ 19–730 of the Health – General Article.

is issued:

is based on a serious threat to health resulting from the existence of a deadly agent as defined in § 14–3A–01 of the Public Safety Article.

submission of claims or proof of loss;

grace periods for payment of premiums and performance of other duties by insureds;

temporary postponement of cancellations, nonrenewals, premium increases, or policy modifications;

procedures for obtaining nonelective health care services;

time restrictions for filling or refilling prescription drugs;

time frames applicable to an action by the Commissioner under this article; and

any other activity necessary to protect the residents of the State.

that the regulation is activated;

the line or lines of business to which the regulation applies;

the geographic areas to which the regulation applies; and

the period of time for which the regulation applies.

Except as provided under subparagraph (ii) of this paragraph, a regulation activated under paragraph (1) of this subsection may not apply beyond the duration of, or the geographical area included within, the Governor’s or President’s declaration of a state of emergency or disaster.

A regulation activated under paragraph (1) of this subsection in response to a national or public health emergency described in subsection (a)(3) of this section may not apply beyond the duration of the President’s or Secretary of Health and Human Services’ declaration of a national or public health emergency.

shall provide a copy of the bulletin to the emergency contact designated by the person subject to the bulletin; and

may post a copy of the bulletin on the Administration’s website.

over alleged discrimination on the basis of race, creed, color, or national origin; and

for the enforcement of § 15–1A–22 of this article.

in the same manner as a subpoena of a circuit court may be served; or

in the same manner as a service of process in a civil action in a circuit court may be served.

issue an order directing compliance with the subpoena or compelling testimony; and

impose penalties as if the person had failed to comply with a subpoena of the court.

tend to incriminate the person; or

subject the person to a penalty of forfeiture.

the person being examined, if the person is found to have violated the law as to the matter about which the witness was subpoenaed; or

the person that requested the hearing, if the hearing was requested by a person other than the Commissioner.

appear and testify under oath before the Commissioner;

attend, answer, or produce evidence requested by the Commissioner; or

give the Commissioner full and truthful information and answer in writing to any material written inquiry of the Commissioner in relation to the subject of an examination, investigation, or hearing.

its effective date;

its purpose;

the grounds on which it is based; and

the provisions of this article under which action is or proposed to be taken.

authorized insurer;

management company of an authorized insurer;

subsidiary owned or controlled by an authorized insurer;

rating organization; or

authorized health maintenance organization.

the home office of a domestic insurer, foreign insurer, health maintenance organization, or private review agent;

the United States branch office of an alien insurer, health maintenance organization, or private review agent; or

a branch or agency office of the insurer, health maintenance organization, or private review agent.

the place of business of the person; or

any place where records of the person are kept.

to the extent incurred for the examination; and

at reasonable rates set by the Commissioner;

shall grant a hearing on the proposed report; and

may not adopt the proposed report until after:

is in the control or possession of the Commissioner; and

is obtained or generated during an analysis or examination conducted under § 2–205 or § 2–206 of this subtitle, Title 7 of this article, or § 23–103, § 15–10B–19, or § 15–10B–20 of this article.

is confidential and privileged;

is not subject to Title 4 of the General Provisions Article;

is not subject to subpoena; and

is not subject to discovery or admissible in evidence in any private civil action.

other State, federal, or international regulatory agencies;

the National Association of Insurance Commissioners or its affiliates or subsidiaries; or

State, federal, or international law enforcement authorities.

The Commissioner may receive a document, material, or information, including a document, material, or information that is confidential and privileged, from:

The Commissioner shall maintain as confidential and privileged any document, material, or information received under this paragraph with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information.

disclosure of the document, material, or information to the Commissioner under this subsection; or

sharing of the document, material, or information by the Commissioner under paragraph (1) of this subsection.

initiating the establishment of a supervisory college;

determining the membership and participation of other supervisors in the supervisory college;

determining the functions of the supervisory college and the role of other state, federal, and international regulators;

coordinating the ongoing activities of the supervisory college, including planning meetings, supervisory activities, and processes for sharing information; and

establishing a crisis management plan on the occurrence of any activity, circumstance, event, or series of events involving one or more affiliates of an insurer that has, or is likely to have, a material adverse effect on the financial condition or liquidity of the insurer or its insurance holding company system as a whole.

Each insurer subject to registration under § 7–603 of this article shall be liable for and shall pay the reasonable expenses of the Commissioner’s participation in a supervisory college, including travel expenses.

A supervisory college may be convened as either a temporary or a permanent forum for communication and cooperation among the regulators charged with supervising an insurer or its affiliates, and the Commissioner may establish a regular assessment to an insurer for the payment of expenses under subparagraph (i) of this paragraph.

In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management, and governance processes of an insurer or its affiliates, and as part of the examination of insurers under § 7–605 of this article, the Commissioner may participate in a supervisory college with other regulators charged with supervising an insurer or its affiliates, including other state, federal, and international regulatory agencies.

Nothing in this section may be construed to delegate to the supervisory college any of the authority of the Commissioner to regulate the insurer or the activities of its affiliates within the State.

authorized to engage in conducting and coordinating group–wide supervision activities for an internationally active insurance group; and

whom the Commissioner determines or acknowledges under this section to have sufficient significant contacts with an internationally active insurance group.

includes, as a member of the insurance holding company system, an insurer registered under § 7–601 of this article; and

has:

does not have substantial insurance operations in the United States;

has substantial insurance operations in the United States, but not in the State; or

has substantial insurance operations in the United States and in the State, if the Commissioner determines based on the factors specified under subsections (d)(2) and (h) of this section that the other regulatory official is the appropriate group–wide supervisor.

Subject to subparagraph (ii) of this paragraph, in cooperation with other state, federal, and international regulatory agencies, the Commissioner shall identify a single group–wide supervisor for an internationally active insurance group.

The Commissioner may:

the place of domicile of the insurers, as members of the internationally active insurance group, that hold the largest share of the internationally active insurance group’s written premiums, assets, or liabilities;

the place of domicile of the top–tiered insurers, as members of the internationally active insurance group;

the location of the executive offices or largest operational offices of the internationally active insurance group;

whether another regulatory official is acting or is seeking to act as the group–wide supervisor under a regulatory system that the Commissioner determines to be:

whether another regulatory official acting or seeking to act as the group–wide supervisor provides the Commissioner with reasonably reciprocal recognition and cooperation.

in cooperation with and subject to the acknowledgment of other regulatory officials involved with supervision of insurers that are members of the internationally active insurance group; and

in consultation with the internationally active insurance group.

the insurers domiciled in the State that are members of the internationally active insurance group holding the largest share of the internationally active insurance group’s premiums, assets, or liabilities; or

the State being the place of domicile of the top–tiered insurer or insurers that are members of the internationally active insurance group.

act as the group–wide supervisor for an internationally active insurance group; or

acknowledge that another regulatory official is the appropriate regulatory official to act as the group–wide supervisor for an internationally active insurance group.

Subject to subparagraph (ii) of this paragraph, before issuing a determination that an internationally active insurance group is subject to group–wide supervision by the Commissioner, the Commissioner shall notify the insurer registered under Title 7, Subtitle 6 of this article that is a member of the internationally active insurance group and the ultimate controlling person within the internationally active insurance group.

An internationally active insurance group shall have at least 30 days to provide the Commissioner with additional information pertinent to the Commissioner’s pending determination.

assess the enterprise risks within the internationally active insurance group to ensure that:

request from an insurer, as a member of an internationally active insurance group, information necessary and appropriate to assess enterprise risk, including information about the insurers, as members of the internationally active insurance group, regarding:

coordinate and, through the authority of the regulatory officials of the jurisdictions where insurers, as members of the internationally active insurance group, are domiciled, compel development and implementation of reasonable measures designed to ensure that the internationally active insurance group is able to recognize and mitigate enterprise risks to insurers, as members of the internationally active insurance group, in a timely manner;

communicate with other state, federal, and international regulatory agencies for insurers, as members of the internationally active insurance group, and share relevant information, subject to the confidentiality provisions of § 7–106 of this article, through supervisory colleges under § 2–209.1 of this subtitle;

subject to paragraph (2) of this subsection and to provide the basis for, or clarification of, the Commissioner’s role as group–wide supervisor, enter into agreements with or obtain documentation from an insurer registered under Title 7, Subtitle 6 of this article, any member of the internationally active insurance group, or any other state, federal, or international regulatory agencies for members of the internationally active insurance group; and

oversee other group–wide supervision activities, consistent with the authority and purpose of this section, as the Commissioner considers necessary.

Any agreements entered into or documentation obtained under paragraph (1)(v) of this subsection may not serve as evidence in any proceeding that any insurer or person of an insurance holding company system not domiciled or incorporated in the State is doing business in the State or is otherwise subject to jurisdiction in the State.

Any agreements entered into under paragraph (1)(v) of this subsection shall include provisions for resolving disputes with other regulatory officials.

if required by any provision of this article; or

except as otherwise provided in this article, on written demand by a person aggrieved by any act of, threatened act of, or failure to act by the Commissioner or by any report, regulation, or order of the Commissioner, except an order to hold a hearing or an order resulting from a hearing.

grant and, unless postponed by mutual consent of the parties, hold the hearing; or

issue an order refusing the hearing.

to each person specified in the provision of this article under which the hearing is held; or

if the provision under which the hearing is held does not specify the persons to be notified, to each person directly affected by the hearing.

before the effective date of the order; or

within 10 days after the order is served.

resulting from a hearing;

resulting from a final decision of the Insurance Commissioner on a complaint in an emergency case under § 15-10A-04 of this article; or

based on impairment of assets or unsound financial condition of an insurer.

the insurer requests that the hearing not be a public hearing; and

the Commissioner determines that it is not in the interest of the public to hold a public hearing.

subject to paragraph (3) of this subsection, appear in person;

be represented:

be present while evidence is given;

have a reasonable opportunity to inspect all documentary evidence and to examine witnesses; and

present evidence.

In this paragraph, “business entity” means a corporation, partnership, limited liability company, or sole proprietorship.

Subject to subparagraphs (iii), (iv), (v), and (vi) of this paragraph, a business entity may authorize the following to represent it in a hearing under this section:

The business entity must provide proof to the Commissioner that it meets the definition of a “small employer” under § 31–101 of this article.

The hearing may not be based on an assignment of the claim of another to the business entity.

In the case of a designated employee, the employee:

The business entity may not contract with, hire, or employ another business entity to provide appearance services.

Subject to subparagraph (ii) of this paragraph, the Commissioner may direct that a hearing be held virtually.

The Commissioner may not require a party to participate virtually in a hearing if the party demonstrates that it is unable to exercise any of the rights under paragraph (1)(ii) through (v) of this subsection by appearing virtually.

The Commissioner shall make available to the parties to a virtual hearing a space within the office of the Maryland Insurance Administration with access to the equipment necessary to allow the parties to participate in the virtual hearing.

to the Circuit Court for Baltimore City; or

if a party to an appeal is an individual, to the circuit court of the county where the individual resides.

the domestic insurer has its principal place of business; or

the licensee or certificate holder resides.

the financial interests of the person are or may be directly affected by the matter on appeal; or

the person may be aggrieved by the matter on appeal.

a copy of the order of the Commissioner from which the appeal is taken;

a complete transcript, certified by the Commissioner, of the record on which the order was issued; and

all exhibits and documentary evidence introduced at the hearing.

a copy of the decision of the Commissioner from which the appeal is taken;

a copy of the report of the independent review organization or medical expert; and

all documentary evidence provided to the Commissioner and the independent review organization or medical expert that directly relates to the matter on appeal.

violate constitutional provisions;

exceed the statutory authority or jurisdiction of the Commissioner;

are made by unlawful procedure;

are affected by other error of law;

are unsupported by competent, material, and substantial evidence in view of the entire record, as submitted; or

are arbitrary or capricious.

hospital;

medical day care center;

hospice care program;

assisted living program; and

freestanding ambulatory care facility as defined in § 19–3B–01 of the Health – General Article.

from a person regulated under this article; or

by a person regulated under this article or an officer, director, agent, or employee of a person regulated under this article;

Title 1, Subtitle 3 of the Agriculture Article;

Title 19, Subtitle 2 or Subtitle 3 of the Business Regulation Article;

Title 14, Subtitle 29, § 11–810, or § 14–1317 of the Commercial Law Article;

the Criminal Law Article other than Title 8, Subtitle 2, Part II or § 10–614;

Title 12, Subtitle 9 of the Financial Institutions Article;

§ 14–127 of the Real Property Article;

§ 6–301 of the Alcoholic Beverages and Cannabis Article;

§ 109 of the Code of Public Local Laws of Caroline County;

§ 4–103 of the Code of Public Local Laws of Carroll County; or

§ 8A–1 of the Code of Public Local Laws of Talbot County.

a health maintenance organization operating under a certificate of authority issued by the Commissioner under Title 19, Subtitle 7 of the Health - General Article;

a nonprofit health service plan operating under Title 14, Subtitle 1 of this article; and

a dental plan operating under Title 14, Subtitle 4 of this article.

a health maintenance organization operating under a certificate of authority issued by the Commissioner under Title 19, Subtitle 7 of the Health - General Article;

a nonprofit health service plan operating under Title 14, Subtitle 1 of this article;

a dental plan operating under Title 14, Subtitle 4 of this article; and

the Maryland Automobile Insurance Fund.

with an appropriation from the Fund approved by the General Assembly in the annual State budget; or

by the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article.

If, in any given fiscal year, the amount of revenue collected by the Commissioner and deposited into the Fund is insufficient to cover the expenditures of the Administration because of an unforeseen emergency and expenditures are made in accordance with the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article, an additional assessment for the expenditures may be made.

the General Fund of the State; or

a special fund of the State, unless otherwise provided by law.