<section article="gin" article_name="Insurance" number="2-101" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <level label="1"> <text>There is a Maryland Insurance Administration.</text> </level> <level label="2"> <text>The Administration is an independent unit of the State government.</text> </level> </level> <level label="b"> <text>The head of the Administration is the Maryland Insurance Commissioner.</text> </level> <level label="c"> <text>The Commissioner shall control and supervise the Administration.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-102" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <level label="1"> <text>The Commissioner shall establish divisions or sections in the Administration, along the following lines of responsibility:</text> <level label="i"> <text>life insurance and health insurance;</text> </level> <level label="ii"> <text>property insurance and casualty insurance;</text> </level> <level label="iii"> <text>audit and examination;</text> </level> <level label="iv"> <text>insurance professions;</text> </level> <level label="v"> <text>consumer affairs; and</text> </level> <level label="vi"> <text>insurance fraud.</text> </level> </level> <level label="2"> <text>The Commissioner may:</text> <level label="i"> <text>establish other areas of responsibility in the Administration; and</text> </level> <level label="ii"> <text>reorganize or abolish areas of responsibility as necessary to fulfill effectively the duties of the Commissioner.</text> </level> </level> </level> <level label="b"> <text>The Commissioner shall report to the General Assembly about:</text> <level label="1"> <text>the initial organizational structure of the Administration; and</text> </level> <level label="2"> <text>any substantial changes in organizational structure.</text> </level> </level> <level label="c"> <text>The organization of each division shall be according to functional area and shall be designed for efficiency, service to the public, and effective regulation.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-103" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <level label="1"> <text>The Governor shall appoint the Commissioner with the advice and consent of the Senate.</text> </level> <level label="2"> <text>The Commissioner shall serve for a term of 4 years.</text> </level> <level label="3"> <text>The Commissioner is directly responsible to the Governor.</text> </level> <level label="4"> <text>The Commissioner shall counsel and advise the Governor on all matters assigned to the Administration.</text> </level> <level label="5"> <text>The Commissioner may be removed by the Governor for:</text> <level label="i"> <text>malfeasance;</text> </level> <level label="ii"> <text>incompetence; or</text> </level> <level label="iii"> <text>failure to carry out the duties of office in a manner consistent with the regulatory purpose and requirements of this article.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The Commissioner is responsible for the operation of the Administration.</text> </level> <level label="2"> <text>The Commissioner shall:</text> <level label="i"> <text>exercise the powers and perform the duties of the Administration under this article;</text> </level> <level label="ii"> <text>organize the Administration to function efficiently and to serve the public; and</text> </level> <level label="iii"> <text>establish, in the Administration, the units necessary for the exercise of the powers and performance of the duties of the Administration.</text> </level> </level> </level> <level label="c"> <text>The Commissioner shall devote full time to the duties of office.</text> </level> <level label="d"> <text>The Commissioner is in the executive service of the State Personnel Management System and is entitled to compensation under the Executive Pay Plan in accordance with the State budget.</text> </level> <level label="e"> <text>The Commissioner shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article.</text> </level> <level label="f"> <level label="1"> <text>The Commissioner shall have a seal of office in the form approved by the Governor.</text> </level> <level label="2"> <text>The impression and description of the seal shall be filed with the Secretary of State.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-104" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <level label="1"> <text>Subject to the approval of the Governor, the Commissioner shall appoint a Deputy Commissioner.</text> </level> <level label="2"> <text>The Deputy Commissioner is in the executive service of the State Personnel Management System and is entitled to compensation in accordance with the State budget.</text> </level> <level label="3"> <text>The Deputy Commissioner shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article.</text> </level> <level label="4"> <text>The Deputy Commissioner shall exercise the powers and perform the duties vested by law in the Commissioner:</text> <level label="i"> <text>if the office of the Commissioner is vacant; or</text> </level> <level label="ii"> <text>if for any reason the Commissioner is absent or unable to exercise the powers and perform the duties of office.</text> </level> </level> </level> <level label="b"> <text>The Commissioner may appoint employees to head divisions or sections established under § 2-102 of this subtitle or for any special purpose that the Commissioner designates.</text> </level> <level label="c"> <level label="1"> <text>The Commissioner shall appoint an actuary.</text> </level> <level label="2"> <text>The Commissioner may appoint assistant actuaries.</text> </level> <level label="3"> <text>The actuary and assistant actuaries shall:</text> <level label="i"> <text>perform the actuarial duties of the Administration;</text> </level> <level label="ii"> <text>examine or help to examine insurers; and</text> </level> <level label="iii"> <text>perform any other duties that the Commissioner assigns.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner shall appoint a chief examiner.</text> </level> <level label="2"> <text>The Commissioner may appoint assistant examiners.</text> </level> <level label="3"> <text>The chief examiner and assistant examiners shall examine or help to examine insurers and other persons subject to examination under this article.</text> </level> </level> <level label="e"> <level label="1"> <text>The Commissioner shall appoint an auditor and examiner for the Administration.</text> </level> <level label="2"> <text>The auditor and examiner shall:</text> <level label="i"> <text>examine and audit the annual statements of all authorized insurers;</text> </level> <level label="ii"> <text>examine and audit the books, accounts, and affairs of the Administration; and</text> </level> <level label="iii"> <text>perform any other auditing that the Commissioner directs.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>The Commissioner may appoint investigators, accountants, and statisticians.</text> </level> <level label="2"> <text>As directed by the Commissioner, the investigators shall investigate, in the State, violations or alleged violations of this article, including insurance fraud as defined in § 27-801 of this article.</text> </level> </level> <level label="g"> <level label="1"> <text>The Administration shall be represented by the Office of the Attorney General.</text> </level> <level label="2"> <text>The Administration shall have:</text> <level label="i"> <text>a principal counsel who is an assistant Attorney General; and</text> </level> <level label="ii"> <text>other assistant Attorneys General, including assistant Attorneys General specifically assigned to the Fraud Division, as provided by the State budget.</text> </level> </level> <level label="3"> <text>The Commissioner may employ on a full-time basis other attorneys at law as the Commissioner considers necessary.</text> </level> </level> <level label="h"> <text>The Commissioner may appoint any other assistants and clerks that are necessary to help the Commissioner in performing the duties of the Commissioner under this article.</text> </level> <level label="i"> <text>The Commissioner may procure, on a fee or part-time basis or both, actuarial, legal, technical, or other professional services, including the services of independent review organizations and medical experts.</text> </level> <level label="j"> <level label="1"> <text>Subject to approval by the Board of Public Works under the State Finance and Procurement Article, the Commissioner may enter into contracts for performance of licensing services under this article with persons that are not governmental entities.</text> </level> <level label="2"> <text>A contract authorized under this subsection:</text> <level label="i"> <text>shall specify the amount of any administrative charge required under this subsection and the manner in which the charge will be collected;</text> </level> <level label="ii"> <text>shall limit the administrative charge to the cost to the contractor of providing the service specified by the contract; and</text> </level> <level label="iii"> <text>may require the contractor to collect any fees required under this article and remit them to the General Fund of the State.</text> </level> </level> <level label="3"> <text>The Commissioner may require an amount equivalent to the administrative cost of providing licensing services to be paid directly to a contractor by any person who is an applicant for a certificate of authority or certificate of qualification issued by the Commissioner or any insurer, health maintenance organization, nonprofit health service plan, fraternal benefit society, the Maryland Automobile Insurance Fund, or other entity operating in this State under a certificate of authority issued by the Commissioner.</text> </level> </level> <level label="k"> <text>The Commissioner shall appoint or contract with a physician and may appoint or contract with other health care providers for the purpose of assisting the Commissioner in performing those duties of the Commissioner that relate to the regulation of health insurance and health maintenance organizations.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-105" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>In this section, “Secretary” means the Secretary of Budget and Management.</text> </level> <level label="b"> <text>All employees of the Administration that serve in a management, professional, or technical capacity are in the executive service, management service, or are special appointments in the State Personnel Management System and serve at the pleasure of the Commissioner.</text> </level> <level label="c"> <text>In accordance with the State budget, the Commissioner may set the compensation of an employee under subsection (b) of this section in a position that:</text> <level label="1"> <text>is unique to the Administration;</text> </level> <level label="2"> <text>requires specific skills or experience to perform the duties of the position; and</text> </level> <level label="3"> <text>does not require the employee to perform functions that are comparable to functions performed in other units of the Executive Branch of State government.</text> </level> </level> <level label="d"> <text>The Secretary, in consultation with the Commissioner, shall determine the positions for which the Commissioner may set compensation under subsection (c) of this section.</text> </level> <level label="e"> <level label="1"> <text>At least 45 days before the effective date of the change, the Commissioner shall submit to the Secretary each change to salary plans that involves increases or decreases in salary ranges other than those associated with routine reclassifications and promotions or general salary increases approved by the General Assembly.</text> </level> <level label="2"> <text>Reportable changes include creation or abolition of classes, regrading the classes from one established range to another, or creation of new pay schedules or ranges.</text> </level> <level label="3"> <text>The Secretary shall:</text> <level label="i"> <text>review the proposed changes; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="4"> <text>Failure of the Secretary to respond in a timely manner is not considered a statement of adverse effect.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-106" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <text>Except as otherwise provided by law, all skilled service employees of the Administration shall be appointed and removed by the Commissioner in accordance with the provisions of Division I of the State Personnel and Pensions Article that govern skilled service employees.</text> </section> <section article="gin" article_name="Insurance" number="2-107" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>Except as provided in subsection (b) of this section, the Commissioner or a deputy, examiner, assistant, or employee of the Commissioner may not be financially interested in an insurer, insurance agency, or insurance transaction, other than as a policyholder or claimant under a policy.</text> </level> <level label="b"> <text>The Commissioner may employ or retain an actuary, attorney, or other technician who is similarly employed or retained by insurers or other persons if the individual:</text> <level label="1"> <text>is independently practicing the profession of the individual; and</text> </level> <level label="2"> <text>does not have a conflict of interest in the matter for which the individual is employed or retained.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-108" future_version_removed="true" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <text>In addition to any powers and duties set forth elsewhere by the laws of the State, the Commissioner:</text> <level label="1"> <text>has the powers and authority expressly conferred on the Commissioner by or reasonably implied from this article;</text> </level> <level label="2"> <text>shall enforce this article;</text> </level> <level label="3"> <text>shall perform the duties imposed on the Commissioner by this article; and</text> </level> <level label="4"> <text>in addition to examinations and investigations expressly authorized, may conduct examinations and investigations of insurance matters as necessary to fulfill the purposes of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-109" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>The Commissioner may adopt regulations to:</text> <level label="1"> <text>carry out this article;</text> </level> <level label="2"> <text>establish, maintain, and administer reserves under Title 3, Subtitle 2A of the Courts Article; and</text> </level> <level label="3"> <text>regulate the solicitation by a domestic stock insurer or other person of proxies, consents, and authorizations with respect to equity securities of the domestic stock insurer.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commissioner shall:</text> <level label="i"> <text>compile and keep in the office of the Commissioner a set of current regulations adopted under this article; and</text> </level> <level label="ii"> <text>make a copy of the regulations for anyone who asks for one.</text> </level> </level> <level label="2"> <text>The Commissioner may set a fee to cover the cost of making and mailing a copy of the current regulations.</text> </level> </level> <level label="c"> <level label="1"> <text>By regulation, the Commissioner shall establish or direct the establishment of a toll-free telephone number to help consumers with and educate consumers about the purchase of private passenger automobile insurance.</text> </level> <level label="2"> <text>The Commissioner:</text> <level label="i"> <text>may not recommend specific insurers or insurance producers; but</text> </level> <level label="ii"> <text>may provide to callers educational material, including a rate guide and a list of insurers and insurance producers.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>By regulation, the Commissioner shall establish standards governing the privacy of consumer financial and health information pursuant to Title V of the Federal Financial Services Modernization Act of 1999 (Public Law 106-102).</text> </level> <level label="2"> <text>The regulations shall be consistent with the provisions of the model regulation adopted by the National Association of Insurance Commissioners entitled “Privacy of Consumer Financial and Health Information Regulation”.</text> </level> </level> <level label="e"> <text>By regulation, the Commissioner shall establish criteria and a process to allow an individual who is otherwise prohibited from engaging in or participating in the business of insurance under the Federal Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103-322) to obtain written consent from the Commissioner to engage in or participate in the business of insurance under the federal Act.</text> </level> <level label="f"> <text>In addition to any other penalty provided, a person that willfully violates a regulation adopted under this article is subject to any applicable penalty under this article for violation of the provision to which the regulation relates.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-110" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>No later than December 31 of each year, the Commissioner shall prepare an annual report about the previous fiscal year that includes:</text> <level label="1"> <text>a list of the authorized insurers transacting insurance business in the State, with any summary of their financial statements that the Commissioner considers appropriate;</text> </level> <level label="2"> <text>the name of each insurer whose business was closed during the year, the cause of the closure, and the amount of assets and liabilities of the insurer that is ascertainable;</text> </level> <level label="3"> <text>the name of each insurer against whom delinquency or similar proceedings were initiated, a concise statement of facts about each delinquency or similar proceeding, and the status of each proceeding;</text> </level> <level label="4"> <text>a list of the rulings and decisions made in cases before the Administration during the year;</text> </level> <level label="5"> <text>a statement of all fees, taxes, and administrative fines and penalties received by the Commissioner and deposited into the General Fund of the State;</text> </level> <level label="6"> <text>the ratio of complaints filed during the calendar year against each insurer for each major line of insurance written by the insurer and a summary of the resolution of the complaints;</text> </level> <level label="7"> <text>recommendations of the Commissioner about changes in the laws affecting insurance and about matters affecting the Administration;</text> </level> <level label="8"> <text>information about the operation of the Fraud Division, including:</text> <level label="i"> <text>the number of complaints received that relate to insurance fraud, the nature of the complaints, and the resolution of the complaints;</text> </level> <level label="ii"> <text>the number of complaints and cases referred to a State’s Attorney and the resolution of the complaints or cases;</text> </level> <level label="iii"> <text>the number of complaints and cases referred to the Office of the Attorney General and the resolution of the complaints or cases;</text> </level> <level label="iv"> <text>the number of calls made to the insurance fraud hot line;</text> </level> <level label="v"> <text>the number of complaints received from persons regulated by the Commissioner;</text> </level> <level label="vi"> <text>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;</text> </level> <level label="vii"> <text>the total number of cases, by type of insurance fraud; and</text> </level> <level label="viii"> <text>the number and percentage of cases that result in the imposition of civil or criminal penalties;</text> </level> </level> <level label="9"> <text>a list of all staff positions, classifications, and salaries in the Administration as of the end of the preceding calendar year; and</text> </level> <level label="10"> <text>any other relevant information that the Commissioner considers proper.</text> </level> </level> <level label="b"> <level label="1"> <text>At least once every 5 years after December 1, 1995, the Commissioner shall prepare a report recommending any changes that the Commissioner considers appropriate under §§ 4-104 and 4-105 of this article.</text> </level> <level label="2"> <text>When required, the report described in paragraph (1) of this subsection may be prepared with the annual report required by subsection (a) of this section.</text> </level> </level> <level label="c"> <text>Reports required under subsection (a) or (b) of this section shall be submitted to the Governor and, subject to § 2-1257 of the State Government Article, the General Assembly.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-111" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>The Commissioner shall keep records of official transactions, examinations, investigations, and proceedings of the Commissioner.</text> </level> <level label="b"> <text>Except as otherwise provided in this article for particular records or insurance filings, the records of the Commissioner and insurance filings in the office of the Commissioner are open to public inspection.</text> </level> <level label="c"> <level label="1"> <text>On request, the Commissioner shall provide a certificate under seal as to the authority of any person to transact insurance business.</text> </level> <level label="2"> <text>The certificate of the Commissioner under seal is evidence of the facts contained in it.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-112" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>Fees for the following certificates, licenses, permits, and services shall be collected in advance by the Commissioner, and shall be paid by the appropriate persons, including health maintenance organizations, to the Commissioner:</text> <level label="1"> <text>fees for certificates of authority:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>fee for initial certificate of authority $200</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>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:</text> <level label="1"> <text>with premiums written in the most recent calendar year not exceeding $500,000.................................................................................. $2,500</text> </level> <level label="2"> <text>with premiums written in the most recent calendar year not exceeding $1,000,000............................................................................... $5,000</text> </level> <level label="3"> <text>with premiums written in the most recent calendar year not exceeding $2,000,000............................................................................... $7,000</text> </level> <level label="4"> <text>with premiums written in the most recent calendar year not exceeding $5,000,000............................................................................... $9,000</text> </level> <level label="5"> <text>with premiums written in the most recent calendar year of more than $5,000,000.............................................................................. $11,000</text> </level> </level> <level label="v"> <text>reinstatement of certificate of authority $500</text> </level> </level> <level label="2"> <text>fees for articles of incorporation of a domestic insurer or foreign insurer, exclusive of fees required to be paid to the Department of Assessments and Taxation:</text> <level label="i"> <text>fee for filing the articles of incorporation with the Commissioner for approval $25</text> </level> <level label="ii"> <text>fee for amendment of the articles of incorporation $10</text> </level> </level> <level label="3"> <text>fees for filing bylaws or amendments to bylaws with the Commissioner..............................................................................................................$10</text> </level> <level label="4"> <text>fees for certificates of qualification:</text> <level label="i"> <text>application fee $25</text> </level> <level label="ii"> <text>managing general agent certificate of qualification:</text> <level label="1"> <text>fee for initial certificate $30</text> </level> <level label="2"> <text>annual renewal fee $30</text> </level> </level> <level label="iii"> <text>surplus lines broker certificate of qualification:</text> <level label="1"> <text>fee for initial certificate within 1 year of renewal.......................................................................................................................$100</text> </level> <level label="2"> <text>fee for initial certificate over 1 year from renewal.......................................................................................................................$100</text> </level> <level label="3"> <text>biennial renewal fee $200</text> </level> </level> </level> <level label="5"> <text>fee for temporary insurance producer licenses and appointments...............................................................................................................$27</text> </level> <level label="6"> <text>fees for licenses and permits:</text> <level label="i"> <text>public adjuster license:</text> <level label="1"> <text>fee for initial license within 1 year of renewal $25</text> </level> <level label="2"> <text>fee for initial license over 1 year from renewal $50</text> </level> <level label="3"> <text>biennial renewal fee $50</text> </level> </level> <level label="ii"> <text>adviser license:</text> <level label="1"> <text>fee for initial license within 1 year of renewal $100</text> </level> <level label="2"> <text>fee for initial license over 1 year from renewal $200</text> </level> <level label="3"> <text>biennial renewal fee $200</text> </level> </level> <level label="iii"> <text>insurance producer license:</text> <level label="1"> <text>fee for initial license $54</text> </level> <level label="2"> <text>biennial renewal fee $54</text> </level> </level> <level label="iv"> <text>SHOP Exchange navigator license:</text> <level label="1"> <text>fee for initial license $54</text> </level> <level label="2"> <text>biennial renewal fee $54</text> </level> <level label="3"> <text>fee for reinstatement of license $100</text> </level> </level> <level label="v"> <text>SHOP Exchange enrollment permit:</text> <level label="1"> <text>fee for initial permit $54</text> </level> <level label="2"> <text>biennial renewal fee $54</text> </level> <level label="3"> <text>fee for reinstatement of permit $100</text> </level> </level> <level label="vi"> <text>application fee $25</text> </level> </level> <level label="7"> <text>fee for each insurance vending machine license, for each machine, every second year $50</text> </level> <level label="8"> <text>fees for approval as a surplus lines insurer:</text> <level label="i"> <text>fee for initial approval $1,000</text> </level> <level label="ii"> <text>annual renewal fee $1,000</text> </level> </level> <level label="9"> <text>fees for eligibility as an accredited or certified reinsurer:</text> <level label="i"> <text>fee for initial eligibility $1,000</text> </level> <level label="ii"> <text>annual fee for continued eligibility $1,000</text> </level> </level> <level label="10"> <text>fees for required filings, including form and rate filings, under Title 11, Subtitles 2 through 4, Title 26, §§ 12–203, 13–110, 14–126, and 27–613 of this article, and § 15–311.2 of the Transportation Article ………………………… $125</text> </level> <level label="11"> <text>service of legal process fee under §§ 3–318(e), 3–319(d), and 4–107 of this article and § 19–708(b)(12) of the Health – General Article ………..……… $15</text> </level> <level label="12"> <text>annual fee for registration of an obligor under § 15–311.2 of the Transportation Article ……………………………………………….……………..……..$25</text> </level> <level label="13"> <text>fees for required filings under § 15–143 of this article……………………………………………………………………………………….. $125</text> </level> </level> <level label="b"> <text>A court may award reimbursement of a service of process fee imposed under subsection (a)(10) of this section to a prevailing plaintiff in any proceeding against an insurer, surplus lines broker, or health maintenance organization.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-112.2" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Carrier” means a person that offers a health benefit plan and is:</text> <level label="i"> <text>an authorized insurer that provides health insurance in the State;</text> </level> <level label="ii"> <text>a nonprofit health service plan;</text> </level> <level label="iii"> <text>a health maintenance organization;</text> </level> <level label="iv"> <text>a dental plan organization; or</text> </level> <level label="v"> <text>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.</text> </level> </level> <level label="3"> <level label="i"> <text>“Health benefit plan” means:</text> <level label="1"> <text>a hospital or medical policy, contract, or certificate, including those issued under multiple employer trusts or associations;</text> </level> <level label="2"> <text>a hospital or medical policy, contract, or certificate issued by a nonprofit health service plan;</text> </level> <level label="3"> <text>a health maintenance organization contract; or</text> </level> <level label="4"> <text>a dental plan.</text> </level> </level> <level label="ii"> <text>“Health benefit plan” does not include one or more, or any combination of the following:</text> <level label="1"> <text>long-term care insurance;</text> </level> <level label="2"> <text>disability insurance;</text> </level> <level label="3"> <text>accidental travel and accidental death and dismemberment insurance;</text> </level> <level label="4"> <text>credit health insurance;</text> </level> <level label="5"> <text>any insurance, medical policy, or certificate for which payment of benefits is conditioned on a determination of medical necessity made solely by the treating health care provider not acting on behalf of the carrier;</text> </level> <level label="6"> <text>any other insurance, medical policy, or certificate for which payment of benefits is not conditioned on a determination of medical necessity; or</text> </level> <level label="7"> <text>a health benefit plan issued by a managed care organization, as defined in Title 15, Subtitle 1 of the Health - General Article.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>“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.</text> </level> <level label="ii"> <text>“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.</text> </level> </level> </level> <level label="b"> <text>The Commissioner shall:</text> <level label="1"> <text>collect a health care regulatory assessment from each carrier for the costs attributable to the implementation of § 2-303.1 of this title and Title 15, Subtitles 10A, 10B, and 10C of this article; and</text> </level> <level label="2"> <text>deposit the amounts collected under paragraph (1) of this subsection into the Health Care Regulatory Fund established in § 2-112.3 of this subtitle.</text> </level> </level> <level label="c"> <text>The health care regulatory assessment that is payable by each carrier shall be calculated by taking the total costs under subsection (b)(1) of this section multiplied by the percentage of gross direct health insurance premiums written in the State attributable to that carrier in the prior calendar year.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-112.3" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>In this section, “Fund” means the Health Care Regulatory Fund.</text> </level> <level label="b"> <text>There is a Health Care Regulatory Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to pay all costs and expenses incurred by the Administration related to the implementation of § 2-303.1 of this title and Title 15, Subtitles 10A, 10B, and 10C of this article.</text> </level> <level label="d"> <text>The Fund shall consist of:</text> <level label="1"> <text>all revenue deposited into the Fund that is received through the imposition and collection of the health care regulatory assessment under § 2-112.2 of this subtitle; and</text> </level> <level label="2"> <text>income from investments that the State Treasurer makes for the Fund.</text> </level> </level> <level label="e"> <level label="1"> <text>Expenditures from the Fund to cover the costs and expenses for the implementation of § 2-303.1 of this title and Title 15, Subtitles 10A, 10B, and 10C of this article may only be made:</text> <level label="i"> <text>with an appropriation from the Fund approved by the General Assembly in the annual State budget; or</text> </level> <level label="ii"> <text>by the budget amendment procedure provided for in § 7-209 of the State Finance and Procurement Article.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>The State Treasurer is the custodian of the Fund.</text> </level> <level label="2"> <text>The Fund shall be invested and reinvested in the same manner as State funds.</text> </level> <level label="3"> <text>The State Treasurer shall deposit payments received from the Commissioner into the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>The Fund is a continuing, nonlapsing fund and is not subject to § 7-302 of the State Finance and Procurement Article, and may not be deemed a part of the General Fund of the State.</text> </level> <level label="2"> <text>No part of the Fund may revert or be credited to:</text> <level label="i"> <text>the General Fund of the State; or</text> </level> <level label="ii"> <text>a special fund of the State, unless otherwise provided by law.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-113" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>Subject to the approval of the Treasurer, the Commissioner may provide by regulation for the payment of unpaid premium taxes or fees owed by an insurer in funds that are immediately available to the State on the date that the payment is due if the total of the unpaid premium taxes or fees is at least $20,000.</text> </level> <level label="b"> <text>Any regulations adopted under this section shall establish a suitable means for payment in immediately available funds to ensure the availability of those funds to the State on the date that payment is due.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-114" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>The following money shall be considered general funds of the State:</text> <level label="1"> <text>except as provided under § 6–107 of this article, revenue received under Title 6, Subtitle 1 of this article;</text> </level> <level label="2"> <text>all revenue received under §§ 3–324, 4–209, 6–303, and 6–304 of this article; and</text> </level> <level label="3"> <text>all penalties imposed by the Commissioner, including the following penalties imposed under:</text> <level label="i"> <text>§§ 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</text> </level> <level label="ii"> <text>§ 19–730 of the Health – General Article.</text> </level> </level> </level> <level label="b"> <text>The following money may not be considered general funds of the State and shall be deposited into the Insurance Regulation Fund established under Subtitle 5 of this title:</text> <level label="1"> <text>all revenue received through the imposition and collection of the assessment fee under Subtitle 5 of this title;</text> </level> <level label="2"> <text>all revenue received through the imposition and collection of the fees set forth in § 2–112 of this subtitle;</text> </level> <level label="3"> <text>all revenue received through the imposition and collection of the fraud prevention fee under Title 6, Subtitle 2 of this article;</text> </level> <level label="4"> <text>all revenue received through the collection of examination expenses under § 2–208 of this title;</text> </level> <level label="5"> <text>except as provided under subsection (a) of this section, all other fees received through the imposition and collection of fees set forth in this article; and</text> </level> <level label="6"> <text>income from investments that the State Treasurer makes for the Insurance Regulation Fund.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-115" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>The Commissioner shall adopt regulations that may be applied when:</text> <level label="1"> <text>the Governor has declared a state of emergency for the State or an area within the State under § 14–107 of the Public Safety Article;</text> </level> <level label="2"> <text>the President of the United States has issued a major disaster or emergency declaration for the State or an area within the State under the federal Stafford Act; or</text> </level> <level label="3"> <text>a national or public health emergency, that within the Commissioner’s discretion affects the State:</text> <level label="i"> <text>is issued:</text> <level label="1"> <text>by the President of the United States under § 201, § 202(d), or § 301 of the federal National Emergencies Act; or</text> </level> <level label="2"> <text>by the Secretary of Health and Human Services under the federal Public Health Service Act; and</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="b"> <text>The regulations may:</text> <level label="1"> <text>apply to any person regulated by the Commissioner under this article or Title 19, Subtitle 7 of the Health – General Article; and</text> </level> <level label="2"> <text>address:</text> <level label="i"> <text>submission of claims or proof of loss;</text> </level> <level label="ii"> <text>grace periods for payment of premiums and performance of other duties by insureds;</text> </level> <level label="iii"> <text>temporary postponement of cancellations, nonrenewals, premium increases, or policy modifications;</text> </level> <level label="iv"> <text>procedures for obtaining nonelective health care services;</text> </level> <level label="v"> <text>time restrictions for filling or refilling prescription drugs;</text> </level> <level label="vi"> <text>time frames applicable to an action by the Commissioner under this article; and</text> </level> <level label="vii"> <text>any other activity necessary to protect the residents of the State.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>To activate a regulation adopted under this section, the Commissioner shall issue a bulletin specifying:</text> <level label="i"> <text>that the regulation is activated;</text> </level> <level label="ii"> <text>the line or lines of business to which the regulation applies;</text> </level> <level label="iii"> <text>the geographic areas to which the regulation applies; and</text> </level> <level label="iv"> <text>the period of time for which the regulation applies.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>The Commissioner:</text> <level label="i"> <text>shall provide a copy of the bulletin to the emergency contact designated by the person subject to the bulletin; and</text> </level> <level label="ii"> <text>may post a copy of the bulletin on the Administration’s website.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-116" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="1" subtitle_name="Organization of Administration; General Powers and Duties of Commissioner"> <level label="a"> <text>The Commissioner may send a notice or other communication by electronic means if:</text> <level label="1"> <text>the Commissioner is required to deliver, give, mail, serve, or otherwise provide the notice or other communication in writing;</text> </level> <level label="2"> <text>the recipient has provided an e–mail address to the Commissioner to receive notices or other communications;</text> </level> <level label="3"> <text>the notice or other communication is sent to the e–mail address provided by the recipient; and</text> </level> <level label="4"> <text>the Commissioner maintains proof that the notice was sent to the recipient at the recipient’s e–mail address.</text> </level> </level> <level label="b"> <text>If a person is required to send the Commissioner a notice or other communication and the person is not licensed, certified, or otherwise regulated by the Commissioner:</text> <level label="1"> <text>the person may send the notice or other communication by electronic means approved by the Commissioner; and</text> </level> <level label="2"> <text>the Commissioner may not require the person to send the notice or other communication by electronic means.</text> </level> </level> <level label="c"> <text>The Commissioner may require a person who is licensed, certified, or otherwise regulated by the Commissioner to send a notice or other communication by electronic means.</text> </level> <level label="d"> <text>Subject to the provisions of the Maryland Uniform Electronic Transactions Act, a notice or other communication sent in accordance with this section shall be presumed to have been received in the ordinary course.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-201" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>The Commissioner may bring an action in a court of competent jurisdiction to enforce this article or an order issued by the Commissioner under this article.</text> </level> <level label="b"> <text>The Commissioner shall be represented by the Attorney General, an assistant Attorney General, or another attorney at law designated by the Attorney General.</text> </level> <level label="c"> <text>Whenever the Commissioner believes that a person has committed a violation of this article for which criminal prosecution is provided, the Commissioner shall refer the alleged violation to:</text> <level label="1"> <text>the State’s Attorney for the county where the violation allegedly occurred or the person resides; or</text> </level> <level label="2"> <text>the Attorney General, if the alleged violation is statewide and not local in nature.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner may investigate any complaint that alleges that a fraudulent claim has been submitted to an insurer.</text> </level> <level label="2"> <text>If the Commissioner finds that a complaint has merit, the Commissioner may refer the complaint to an appropriate law enforcement authority, including the Attorney General, for appropriate action.</text> </level> </level> <level label="e"> <text>The Commissioner may enforce the provisions of this article, and may impose any penalty or remedy authorized by this article, against a person that is under investigation for or charged with a violation of this article if:</text> <level label="1"> <text>the person’s certificate of authority, certificate of qualification, license, or registration is no longer in effect; and</text> </level> <level label="2"> <text>the alleged violation occurred no more than 5 years before surrender or lapse of the certificate, license, or registration.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-202" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <level label="1"> <text>Notwithstanding any other law and except as provided in paragraph (2) of this subsection, the Commissioner has exclusive jurisdiction to enforce by administrative action the laws of the State that relate to the underwriting or rate–setting practices of an insurer.</text> </level> <level label="2"> <text>The Commission on Civil Rights has concurrent jurisdiction with the Commissioner:</text> <level label="i"> <text>over alleged discrimination on the basis of race, creed, color, or national origin; and</text> </level> <level label="ii"> <text>for the enforcement of § 15–1A–22 of this article.</text> </level> </level> </level> <level label="b"> <text>When the Commissioner has exclusive jurisdiction under subsection (a) of this section, the Commission on Civil Rights may:</text> <level label="1"> <text>refer complaints about discriminatory practices to the Commissioner;</text> </level> <level label="2"> <text>appear before the Commissioner as a party at a hearing about discriminatory practices;</text> </level> <level label="3"> <text>make recommendations about discriminatory practices to the Commissioner;</text> </level> <level label="4"> <text>represent a complainant in proceedings under § 2–210 of this subtitle; and</text> </level> <level label="5"> <text>appeal as a party aggrieved by an order or decision of the Commissioner under § 2–215 of this subtitle or § 11–503 of this article.</text> </level> </level> <level label="c"> <text>The Commissioner shall notify the Commission on Civil Rights of any hearing scheduled on a complaint about alleged discriminatory practices.</text> </level> <level label="d"> <text>On request of the Commission on Civil Rights and unless the complainant objects, the Commissioner shall give the Commission on Civil Rights all information about any complaint about alleged discriminatory practices received by the Commissioner.</text> </level> <level label="e"> <text>The Commissioner and the Commission on Civil Rights shall set guidelines for determining when allegations in a complaint about alleged discriminatory practices are sufficient to warrant a hearing.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-203" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>With respect to an examination, investigation, or hearing conducted by the Commissioner, the Commissioner, deputy commissioner, or an examiner authorized by the Commissioner may:</text> <level label="1"> <text>administer oaths;</text> </level> <level label="2"> <text>examine individuals under oath; and</text> </level> <level label="3"> <text>issue subpoenas for the attendance of witnesses to testify or the production of evidence.</text> </level> </level> <level label="b"> <level label="1"> <text>A subpoena issued under this section shall be served:</text> <level label="i"> <text>in the same manner as a subpoena of a circuit court may be served; or</text> </level> <level label="ii"> <text>in the same manner as a service of process in a civil action in a circuit court may be served.</text> </level> </level> <level label="2"> <text>If a person fails to comply with a lawfully served subpoena, the Commissioner immediately shall file a complaint and a copy of the subpoena and proof of service with the circuit court for the county where the person was required to appear or produce evidence.</text> </level> <level label="3"> <text>On receipt of a complaint and a copy of the subpoena and proof of service, the circuit court shall:</text> <level label="i"> <text>issue an order directing compliance with the subpoena or compelling testimony; and</text> </level> <level label="ii"> <text>impose penalties as if the person had failed to comply with a subpoena of the court.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A person is not excused from attending, testifying, or producing evidence in an examination, investigation, or hearing conducted by or under authority of the Commissioner on the ground that the testimony or evidence may:</text> <level label="i"> <text>tend to incriminate the person; or</text> </level> <level label="ii"> <text>subject the person to a penalty of forfeiture.</text> </level> </level> <level label="2"> <text>Before a person that claims the privilege against self-incrimination is required or allowed to testify or produce evidence, the Commissioner shall consult with the Attorney General and, with the consent of the Attorney General, the person may not be prosecuted or punished in a criminal action because of an act, transaction, matter, or thing about which the person is compelled to produce evidence or testify under oath.</text> </level> <level label="3"> <text>A person that testifies is not exempt from prosecution and punishment for perjury committed while testifying.</text> </level> </level> <level label="d"> <level label="1"> <text>A witness is entitled to the fees and mileage reimbursement allowed for testimony in a court.</text> </level> <level label="2"> <text>On submission of an itemized claim, witness fees, mileage, and actual necessary expenses incurred in securing attendance and testimony of a witness shall be paid by:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the person that requested the hearing, if the hearing was requested by a person other than the Commissioner.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A person may not willfully testify falsely under oath about any matter that is material to an examination, investigation, or hearing.</text> </level> <level label="2"> <text>A person that violates paragraph (1) of this subsection is guilty of perjury and on conviction shall be punished accordingly.</text> </level> </level> <level label="f"> <level label="1"> <text>A person may not willfully fail to:</text> <level label="i"> <text>appear and testify under oath before the Commissioner;</text> </level> <level label="ii"> <text>attend, answer, or produce evidence requested by the Commissioner; or</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="2"> <text>In addition to or instead of any other applicable penalty, a person that violates paragraph (1) of this subsection is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-204" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>An order or notice of the Commissioner must be in writing and signed by the Commissioner or an individual authorized by the Commissioner.</text> </level> <level label="b"> <level label="1"> <text>An order of the Commissioner shall state:</text> <level label="i"> <text>its effective date;</text> </level> <level label="ii"> <text>its purpose;</text> </level> <level label="iii"> <text>the grounds on which it is based; and</text> </level> <level label="iv"> <text>the provisions of this article under which action is or proposed to be taken.</text> </level> </level> <level label="2"> <text>Failure to designate a particular provision of this article in accordance with paragraph (1)(iv) of this subsection does not deprive the Commissioner of the right to rely on that provision.</text> </level> </level> <level label="c"> <text>An order or notice may be served on a person by:</text> <level label="1"> <text>mailing it to the person at the last known principal place of business of the person, as listed in the records of the Commissioner;</text> </level> <level label="2"> <text>electronic means in accordance with § 2–116 of this title; or</text> </level> <level label="3"> <text>otherwise delivering it to the person.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-205" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>In this section, “analysis” means a process by which the Commissioner collects and analyzes information from filed schedules, surveys, required reports specified in subsection (b) of this section, and other sources in order to:</text> <level label="1"> <text>develop an understanding of the affairs, transactions, accounts, records, assets, and financial condition of the entities specified in subsection (b) of this section; or</text> </level> <level label="2"> <text>identify or investigate patterns or practices of the entities specified in subsection (b) of this section.</text> </level> </level> <level label="b"> <level label="1"> <text>Whenever the Commissioner considers it advisable, the Commissioner shall conduct an analysis or examine the affairs, transactions, accounts, records, assets, and financial condition of each:</text> <level label="i"> <text>authorized insurer;</text> </level> <level label="ii"> <text>management company of an authorized insurer;</text> </level> <level label="iii"> <text>subsidiary owned or controlled by an authorized insurer;</text> </level> <level label="iv"> <text>rating organization; or</text> </level> <level label="v"> <text>authorized health maintenance organization.</text> </level> </level> <level label="2"> <text>The Commissioner shall examine each domestic insurer and health maintenance organization at least once every 5 years.</text> </level> </level> <level label="c"> <text>The Commissioner shall examine the affairs, transactions, accounts, records, and assets of:</text> <level label="1"> <text>each insurer and each health maintenance organization that applies for an original certificate of authority to do business in the State; and</text> </level> <level label="2"> <text>each rating organization that applies for a license to do business in the State.</text> </level> </level> <level label="d"> <text>When examining a reciprocal insurer, the Commissioner may examine the attorney in fact of the reciprocal insurer to the extent that the transactions of the attorney in fact relate to the reciprocal insurer.</text> </level> <level label="e"> <text>The Commissioner may limit the examination of an alien insurer to its insurance transactions and affairs in the United States.</text> </level> <level label="f"> <text>Instead of conducting an examination, the Commissioner may accept a full report, certified by the insurance supervisory official of another state, of the most recent examination of a foreign insurer or health maintenance organization, alien insurer or health maintenance organization, or an out–of–state rating organization.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-206" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <text>When advisable to determine compliance with this article, the Commissioner may examine the accounts, records, documents, and transactions that relate to the insurance affairs or proposed insurance affairs of:</text> <level label="1"> <text>an insurance producer, surplus lines broker, general agent, adjuster, public adjuster, or adviser;</text> </level> <level label="2"> <text>a person with the exclusive or dominant right under a contract to manage or control an insurer;</text> </level> <level label="3"> <text>a person that, for the purpose of controlling the management of a domestic insurer, holds the shares of voting stock or policyholder proxies of the domestic insurer as voting trustee or otherwise; or</text> </level> <level label="4"> <text>a person engaged in, proposing to engage in, or helping in the promotion or formation of:</text> <level label="i"> <text>a domestic insurer or insurance holding corporation; or</text> </level> <level label="ii"> <text>a corporation to finance a domestic insurer or the production of its business.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-207" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <level label="1"> <text>The Commissioner shall conduct an examination of an insurer, health maintenance organization, or private review agent at:</text> <level label="i"> <text>the home office of a domestic insurer, foreign insurer, health maintenance organization, or private review agent;</text> </level> <level label="ii"> <text>the United States branch office of an alien insurer, health maintenance organization, or private review agent; or</text> </level> <level label="iii"> <text>a branch or agency office of the insurer, health maintenance organization, or private review agent.</text> </level> </level> <level label="2"> <text>The Commissioner shall conduct an examination of a person other than an insurer, health maintenance organization, or private review agent at:</text> <level label="i"> <text>the place of business of the person; or</text> </level> <level label="ii"> <text>any place where records of the person are kept.</text> </level> </level> </level> <level label="b"> <text>Each person that is examined and its officers, employees, agents, and representatives shall:</text> <level label="1"> <text>produce and make freely available to the Commissioner or an examiner the accounts, records, documents, files, information, assets, and matters that are in the possession or control of the person and relate to the subject of the examination; and</text> </level> <level label="2"> <text>otherwise help the examination to the extent reasonably possible.</text> </level> </level> <level label="c"> <level label="1"> <text>At the expense of the person being examined, the Commissioner may retain an actuary, accountant, or other expert, who is not otherwise a part of the staff of the Administration, if reasonably necessary to conduct an examination under this article.</text> </level> <level label="2"> <text>The actuary, accountant, or other expert may rewrite, post, or balance the accounts of the person being examined.</text> </level> </level> <level label="d"> <level label="1"> <text>If the Commissioner considers it necessary to value real estate involved in an examination, the Commissioner may request in writing that the person being examined appoint one or more competent appraisers, approved by the Commissioner, to appraise the real estate.</text> </level> <level label="2"> <text>If the person does not appoint an appraiser within 10 days after the request was delivered to the person, the Commissioner may appoint an appraiser.</text> </level> <level label="3"> <text>The appraisal shall be made promptly, and a copy of the appraisal report shall be provided to the Commissioner.</text> </level> <level label="4"> <text>The person being examined shall pay the reasonable expense of the appraisal.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-208" future_version_removed="true" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>Subject to subsection (b) of this section, the expense incurred in an examination made under § 2–205 of this subtitle, § 2–206 of this subtitle for surplus lines brokers and insurance holding corporations, § 23–207 of this article for premium finance companies, § 15–10B–19 of this article for private review agents, § 15–10B–20 of this article, or § 14–610 of this article for discount medical plan organizations and discount drug plan organizations shall be paid by the person examined in the following manner:</text> <level label="1"> <text>the person examined shall pay to the Commissioner the travel expenses, a living expense allowance, and a per diem as compensation for examiners, actuaries, and typists:</text> <level label="i"> <text>to the extent incurred for the examination; and</text> </level> <level label="ii"> <text>at reasonable rates set by the Commissioner;</text> </level> </level> <level label="2"> <text>the Commissioner may present a detailed account of expenses incurred to the person examined periodically during the examination or at the end of the examination, as the Commissioner considers proper; and</text> </level> <level label="3"> <text>a person may not pay and an examiner may not accept any compensation for an examination in addition to the compensation under item (1) of this subsection.</text> </level> </level> <level label="b"> <text>If the Commissioner conducts an examination of an administrative services organization that administers the delivery system for specialty mental health services established under § 15–103(b)(21) of the Health – General Article, the administrative services organization may not use State funds or otherwise pass onto the State the expenses described in subsection (a) of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-209" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>The Commissioner or an examiner shall make a complete report of each examination made under § 2–205 of this subtitle or § 23–207, § 15–10B–19, or § 15–10B–20 of this article.</text> </level> <level label="b"> <text>An examination report shall contain only facts:</text> <level label="1"> <text>from the books, records, or documents of the person being examined; or</text> </level> <level label="2"> <text>determined from statements of individuals about the person’s affairs.</text> </level> </level> <level label="c"> <level label="1"> <text>At least 30 days before adopting a proposed examination report, the Commissioner shall provide a copy of the proposed report to the person that was examined.</text> </level> <level label="2"> <text>If the person requests a hearing in writing within the 30–day period, the Commissioner:</text> <level label="i"> <text>shall grant a hearing on the proposed report; and</text> </level> <level label="ii"> <text>may not adopt the proposed report until after:</text> <level label="1"> <text>the hearing is held; and</text> </level> <level label="2"> <text>any modifications of the report that the Commissioner considers proper are made.</text> </level> </level> </level> </level> <level label="d"> <level label="1"> <text>After an examination report is adopted by the Commissioner, the examination report is admissible as evidence of the facts contained in it in any action brought by the Commissioner against the person examined or an officer or insurance producer of the person.</text> </level> <level label="2"> <text>Regardless of whether a written examination report has been made, served, or adopted by the Commissioner, the Commissioner or an examiner may testify and offer other proper evidence about information obtained during an examination.</text> </level> </level> <level label="e"> <text>The Commissioner may withhold an examination or investigation report from public inspection for as long as the Commissioner considers the withholding to be:</text> <level label="1"> <text>necessary to protect the person examined from unwarranted injury; or</text> </level> <level label="2"> <text>in the public interest.</text> </level> </level> <level label="f"> <text>If the Commissioner considers it to be in the public interest, the Commissioner may publish an examination report or a summary of it in a newspaper in the State.</text> </level> <level label="g"> <level label="1"> <text>This subsection applies only to a document, material, or information other than an adopted examination report that:</text> <level label="i"> <text>is in the control or possession of the Commissioner; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>A document, material, or information that is subject to this subsection:</text> <level label="i"> <text>is confidential and privileged;</text> </level> <level label="ii"> <text>is not subject to Title 4 of the General Provisions Article;</text> </level> <level label="iii"> <text>is not subject to subpoena; and</text> </level> <level label="iv"> <text>is not subject to discovery or admissible in evidence in any private civil action.</text> </level> </level> <level label="3"> <text>Notwithstanding paragraph (2) of this subsection, the Commissioner may use any document, material, or information that is subject to this subsection to further any regulatory or legal action brought as part of the duties of the Commissioner.</text> </level> <level label="4"> <text>The Commissioner and any person that receives a document, material, or information that is subject to this subsection while acting under the authority of the Commissioner may not be allowed or required to testify in any private civil action concerning the document, material, or information.</text> </level> </level> <level label="h"> <level label="1"> <text>Provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, or information, the Commissioner may share a document, material, or information, including a document, material, or information that is confidential and privileged under subsection (g) of this section, with:</text> <level label="i"> <text>other State, federal, or international regulatory agencies;</text> </level> <level label="ii"> <text>the National Association of Insurance Commissioners or its affiliates or subsidiaries; or</text> </level> <level label="iii"> <text>State, federal, or international law enforcement authorities.</text> </level> </level> <level label="2"> <level label="i"> <text>The Commissioner may receive a document, material, or information, including a document, material, or information that is confidential and privileged, from:</text> <level label="1"> <text>other State, federal, or international regulatory agencies;</text> </level> <level label="2"> <text>the National Association of Insurance Commissioners or its affiliates or subsidiaries; or</text> </level> <level label="3"> <text>State, federal, or international law enforcement authorities.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>The Commissioner may enter into agreements governing the sharing and use of information consistent with this subsection.</text> </level> <level label="4"> <text>There is no waiver of any applicable privilege or claim of confidentiality with regard to a document, material, or information as a result of:</text> <level label="i"> <text>disclosure of the document, material, or information to the Commissioner under this subsection; or</text> </level> <level label="ii"> <text>sharing of the document, material, or information by the Commissioner under paragraph (1) of this subsection.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>The Commissioner shall provide a copy of the adopted examination report to the person that was examined.</text> </level> <level label="2"> <text>The person examined shall present the adopted examination report to its board of directors at the next regularly scheduled meeting of the board.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-209.1" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>In this section, “supervisory college” means a forum for cooperation and communication among the involved state, federal, and international regulators established for the fundamental purpose of facilitating the effectiveness of supervision of entities that belong to an insurance holding company system.</text> </level> <level label="b"> <level label="1"> <text>With respect to any insurer registered under Title 7, Subtitle 6 of this article, the Commissioner may participate in a supervisory college for any domestic insurer that is part of an insurance holding company system with international operations in order to determine compliance by the insurer with this article.</text> </level> <level label="2"> <text>The powers of the Commissioner with respect to a supervisory college include:</text> <level label="i"> <text>initiating the establishment of a supervisory college;</text> </level> <level label="ii"> <text>determining the membership and participation of other supervisors in the supervisory college;</text> </level> <level label="iii"> <text>determining the functions of the supervisory college and the role of other state, federal, and international regulators;</text> </level> <level label="iv"> <text>coordinating the ongoing activities of the supervisory college, including planning meetings, supervisory activities, and processes for sharing information; and</text> </level> <level label="v"> <text>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.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="4"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="c"> <text>The Commissioner may enter into agreements providing the basis for cooperation between the Commissioner and other state, federal, and international regulatory agencies and the activities of the supervisory college in accordance with § 2–209(h) of this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-209.2" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Group–wide supervisor” means a regulatory official:</text> <level label="i"> <text>authorized to engage in conducting and coordinating group–wide supervision activities for an internationally active insurance group; and</text> </level> <level label="ii"> <text>whom the Commissioner determines or acknowledges under this section to have sufficient significant contacts with an internationally active insurance group.</text> </level> </level> <level label="3"> <text>“Internationally active insurance group” means an insurance holding company system that:</text> <level label="i"> <text>includes, as a member of the insurance holding company system, an insurer registered under § 7–601 of this article; and</text> </level> <level label="ii"> <text>has:</text> <level label="1"> <text>premiums written in at least three countries;</text> </level> <level label="2"> <text>at least 10% of its total gross written premiums from premiums written outside the United States; and</text> </level> <level label="3"> <text>based on a 3–year rolling average, total assets of at least $50,000,000,000 or total gross written premiums of at least $10,000,000,000.</text> </level> </level> </level> <level label="4"> <text>“NAIC” means the National Association of Insurance Commissioners.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Commissioner is authorized to act as the group–wide supervisor for an internationally active insurance group in accordance with the provisions of this section.</text> </level> <level label="2"> <text>The Commissioner may acknowledge another regulatory official as the group–wide supervisor for an internationally active insurance group that:</text> <level label="i"> <text>does not have substantial insurance operations in the United States;</text> </level> <level label="ii"> <text>has substantial insurance operations in the United States, but not in the State; or</text> </level> <level label="iii"> <text>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.</text> </level> </level> </level> <level label="c"> <text>An insurance holding company system that does not otherwise qualify as an internationally active insurance group may request that the Commissioner make a determination or acknowledgment of a group–wide supervisor under this section for the insurance holding company system.</text> </level> <level label="d"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The Commissioner may:</text> <level label="1"> <text>determine that the Commissioner is the appropriate single group–wide supervisor for an internationally active insurance group that conducts substantial insurance operations in the State; or</text> </level> <level label="2"> <text>acknowledge that a regulatory official from another jurisdiction is the appropriate single group–wide supervisor for an internationally active insurance group.</text> </level> </level> </level> <level label="2"> <text>The Commissioner shall consider the following factors when making a determination or acknowledgment under paragraph (1)(ii) of this subsection:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>the place of domicile of the top–tiered insurers, as members of the internationally active insurance group;</text> </level> <level label="iii"> <text>the location of the executive offices or largest operational offices of the internationally active insurance group;</text> </level> <level label="iv"> <text>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:</text> <level label="1"> <text>substantially similar to the regulatory system provided under the laws of the State; or</text> </level> <level label="2"> <text>otherwise sufficient in providing for group–wide supervision, enterprise risk analysis, and cooperation with other regulatory officials; and</text> </level> </level> <level label="v"> <text>whether another regulatory official acting or seeking to act as the group–wide supervisor provides the Commissioner with reasonably reciprocal recognition and cooperation.</text> </level> </level> <level label="3"> <text>In making a decision to acknowledge another regulatory official as the appropriate single group–wide supervisor of an internationally active insurance group under paragraph (1)(ii)2 of this subsection, the Commissioner shall make the decision:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>in consultation with the internationally active insurance group.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Notwithstanding any other provision of law, when another regulatory official is the group–wide supervisor for an internationally active insurance group, the Commissioner shall acknowledge that regulatory official as the group–wide supervisor of the internationally active insurance group.</text> </level> <level label="2"> <text>The Commissioner shall make a determination or acknowledgment under subsection (d)(1)(ii) of this section as to the appropriate single group–wide supervisor for an internationally active insurance group in the event of a material change in the internationally active insurance group that results in:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the State being the place of domicile of the top–tiered insurer or insurers that are members of the internationally active insurance group.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>In accordance with § 7–605 of this article, the Commissioner may collect from an insurer registered under Title 7, Subtitle 6 of this article information necessary for the Commissioner to determine whether the Commissioner may:</text> <level label="i"> <text>act as the group–wide supervisor for an internationally active insurance group; or</text> </level> <level label="ii"> <text>acknowledge that another regulatory official is the appropriate regulatory official to act as the group–wide supervisor for an internationally active insurance group.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>The Commissioner shall publish in the Maryland Register and on the Administration’s website the identity of internationally active insurance groups that the Commissioner has determined are subject to group–wide supervision by the Commissioner.</text> </level> </level> <level label="g"> <level label="1"> <text>If the Commissioner is the appropriate single group–wide supervisor for an internationally active insurance group, the Commissioner may:</text> <level label="i"> <text>assess the enterprise risks within the internationally active insurance group to ensure that:</text> <level label="1"> <text>the material financial condition and liquidity risks to the insurers, as members of the internationally active insurance group, are identified by management; and</text> </level> <level label="2"> <text>reasonable and effective mitigation measures are in place;</text> </level> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>governance;</text> </level> <level label="2"> <text>risk assessment;</text> </level> <level label="3"> <text>management;</text> </level> <level label="4"> <text>capital adequacy; and</text> </level> <level label="5"> <text>material intercompany transactions;</text> </level> </level> <level label="iii"> <text>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;</text> </level> <level label="iv"> <text>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;</text> </level> <level label="v"> <text>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</text> </level> <level label="vi"> <text>oversee other group–wide supervision activities, consistent with the authority and purpose of this section, as the Commissioner considers necessary.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>Any agreements entered into under paragraph (1)(v) of this subsection shall include provisions for resolving disputes with other regulatory officials.</text> </level> </level> </level> <level label="h"> <text>If the Commissioner acknowledges that another regulatory official from a jurisdiction that is not accredited by the NAIC is the group–wide supervisor, the Commissioner may reasonably cooperate, through supervisory colleges or otherwise, with group–wide supervision undertaken by the group–wide supervisor, if:</text> <level label="1"> <text>the Commissioner’s cooperation is in compliance with the laws of the State;</text> </level> <level label="2"> <text>the regulatory official acknowledged as the group–wide supervisor recognizes and cooperates with the Commissioner’s activities as a group–wide supervisor for other internationally active insurance groups where applicable; and</text> </level> <level label="3"> <text>the recognition and cooperation is reasonably reciprocal.</text> </level> </level> <level label="i"> <text>If a regulatory official from a jurisdiction that is not accredited by the NAIC is the group–wide supervisor but does not recognize or cooperate with the Commissioner’s activities as a group–wide supervisor or is not reasonably reciprocal, the Commissioner may refuse recognition and cooperation.</text> </level> <level label="j"> <text>The Commissioner may enter into agreements with or obtain documentation from:</text> <level label="1"> <text>an insurer registered under Title 7, Subtitle 6 of this article;</text> </level> <level label="2"> <text>an affiliate of an insurer registered under Title 7, Subtitle 6 of this article; and</text> </level> <level label="3"> <text>other state, federal, and international regulatory agencies for members of the internationally active insurance group, that provide the basis for, or clarify, a regulatory official’s role as group–wide supervisor.</text> </level> </level> <level label="k"> <text>A registered insurer subject to this section shall be liable for, and shall pay, the reasonable expenses of the Commissioner’s participation in the administration of this section, including the engagement of attorneys, actuaries, and any other professionals and reasonable travel expenses.</text> </level> <level label="l"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-210" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <level label="1"> <text>The Commissioner may hold hearings that the Commissioner considers necessary for any purpose under this article.</text> </level> <level label="2"> <text>The Commissioner shall hold a hearing:</text> <level label="i"> <text>if required by any provision of this article; or</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>A demand for a hearing shall state the grounds for the relief to be demanded at the hearing.</text> </level> <level label="2"> <text>Within 30 consecutive days after receiving a demand for a hearing, the Commissioner shall:</text> <level label="i"> <text>grant and, unless postponed by mutual consent of the parties, hold the hearing; or</text> </level> <level label="ii"> <text>issue an order refusing the hearing.</text> </level> </level> <level label="3"> <text>If the Commissioner does not grant or refuse a hearing within the 30–day period, the hearing is deemed to have been refused.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a hearing held under this section shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article (Administrative Procedure Act – Contested Cases).</text> </level> <level label="2"> <text>A hearing held under this section is not subject to § 10–216 of the State Government Article.</text> </level> </level> <level label="d"> <text>The Commissioner may delegate to the Deputy Commissioner, an associate deputy commissioner, an associate commissioner, or one other Administration employee who is designated by the Commissioner and admitted to the practice of law in the State the responsibility for holding a hearing under this section or § 4–114 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-211" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <level label="1"> <text>At least 10 days before a hearing, the Commissioner shall give notice of the hearing:</text> <level label="i"> <text>to each person specified in the provision of this article under which the hearing is held; or</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>If not all persons entitled to notice of the hearing are known, the Commissioner may perfect notice by publication in a newspaper of general circulation in the State at least 10 days before the hearing.</text> </level> </level> <level label="b"> <text>The notice of the hearing shall state:</text> <level label="1"> <text>the time and place of the hearing; and</text> </level> <level label="2"> <text>the matters to be considered at the hearing.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-212" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a demand for a hearing stays an order of the Commissioner pending the hearing and an order resulting from it if the Commissioner receives the demand:</text> <level label="i"> <text>before the effective date of the order; or</text> </level> <level label="ii"> <text>within 10 days after the order is served.</text> </level> </level> <level label="2"> <text>Paragraph (1) of this subsection does not apply to an action taken or proposed under an order:</text> <level label="i"> <text>resulting from a hearing;</text> </level> <level label="ii"> <text>resulting from a final decision of the Insurance Commissioner on a complaint in an emergency case under § 15-10A-04 of this article; or</text> </level> <level label="iii"> <text>based on impairment of assets or unsound financial condition of an insurer.</text> </level> </level> </level> <level label="b"> <text>If the Commissioner does not grant a written request for a stay, the aggrieved person may apply to the Circuit Court for Baltimore City for a stay of the proposed action of the Commissioner.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-213" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <level label="1"> <text>Except as otherwise provided in this subsection, all hearings shall be open to the public in accordance with § 8–505 of the State Government Article.</text> </level> <level label="2"> <text>A hearing held by the Commissioner that relates to a filing under Title 11 of this article is not required to be open to the public.</text> </level> <level label="3"> <text>A hearing held by the Commissioner to determine whether an insurer is being operated in a hazardous manner that could result in its impairment is not required to be open to the public if:</text> <level label="i"> <text>the insurer requests that the hearing not be a public hearing; and</text> </level> <level label="ii"> <text>the Commissioner determines that it is not in the interest of the public to hold a public hearing.</text> </level> </level> <level label="4"> <text>A hearing held by the Commissioner to evaluate the financial condition of an insurer under the risk based capital standards set out in Title 4, Subtitle 3 of this article is not required to be open to the public.</text> </level> <level label="5"> <text>A hearing shall be considered open to the public if a member of the public may observe the hearing virtually through an electronic media platform.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commissioner shall allow any party to a hearing to:</text> <level label="i"> <text>subject to paragraph (3) of this subsection, appear in person;</text> </level> <level label="ii"> <text>be represented:</text> <level label="1"> <text>by counsel;</text> </level> <level label="2"> <text>in the case of an insurer, by a designee of the insurer who:</text> </level> <level label="A"> <text>is employed by the insurer in claims, underwriting, or as otherwise provided by the Commissioner; and</text> </level> <level label="B"> <text>has been given the authority by the insurer to resolve all issues involved in the hearing; or</text> </level> <level label="3"> <text>by a representative authorized under paragraph (2) of this subsection;</text> </level> </level> <level label="iii"> <text>be present while evidence is given;</text> </level> <level label="iv"> <text>have a reasonable opportunity to inspect all documentary evidence and to examine witnesses; and</text> </level> <level label="v"> <text>present evidence.</text> </level> </level> <level label="2"> <level label="i"> <text>In this paragraph, “business entity” means a corporation, partnership, limited liability company, or sole proprietorship.</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>for a corporation, an officer of the corporation or an employee designated by an officer of the corporation;</text> </level> <level label="2"> <text>for a partnership, a partner in the partnership or an employee designated by a partner;</text> </level> <level label="3"> <text>for a limited liability company, a member of the limited liability company or an employee designated by a member of the limited liability company; or</text> </level> <level label="4"> <text>for a sole proprietorship, an employee designated by the owner of the sole proprietorship.</text> </level> </level> <level label="iii"> <text>The business entity must provide proof to the Commissioner that it meets the definition of a “small employer” under § 31–101 of this article.</text> </level> <level label="iv"> <text>The hearing may not be based on an assignment of the claim of another to the business entity.</text> </level> <level label="v"> <text>In the case of a designated employee, the employee:</text> <level label="1"> <text>must provide to the Commissioner a power of attorney sworn to by the employer that certifies that the designated employee is an authorized agent of the business entity and may bind the business entity on matters pending before the Commissioner; and</text> </level> <level label="2"> <text>may not be an individual who is disbarred or suspended as a lawyer in any state.</text> </level> </level> <level label="vi"> <text>The business entity may not contract with, hire, or employ another business entity to provide appearance services.</text> </level> </level> <level label="3"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, the Commissioner may direct that a hearing be held virtually.</text> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="4"> <text>On request of a party, the Commissioner shall issue subpoenas to compel attendance of witnesses or production of evidence on behalf of the party.</text> </level> </level> <level label="c"> <text>The Commissioner shall allow any person that was not an original party to a hearing to become a party by intervention if:</text> <level label="1"> <text>the intervention is timely; and</text> </level> <level label="2"> <text>the financial interests of the person will be directly and immediately affected by an order of the Commissioner resulting from the hearing.</text> </level> </level> <level label="d"> <text>Formal rules of pleading or evidence need not be observed at a hearing.</text> </level> <level label="e"> <level label="1"> <text>On timely written request by a party to a hearing, the Commissioner shall have a full stenographic record of the proceedings made by a competent reporter at the expense of that party.</text> </level> <level label="2"> <text>If the stenographic record is transcribed, a copy shall be given on request to any other party to the hearing at the expense of that party.</text> </level> <level label="3"> <text>If the stenographic record is not made or transcribed, the Commissioner shall prepare an adequate record of the evidence and proceedings.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-214" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>In holding a hearing under this subtitle the Commissioner sits in a quasi-judicial capacity.</text> </level> <level label="b"> <level label="1"> <text>Within 30 days after a hearing or any rehearing or reargument of matters involved in the hearing, the Commissioner shall issue an order that covers matters involved in the hearing and in any rehearing or reargument.</text> </level> <level label="2"> <text>The Commissioner shall serve a copy of the order on the same persons that were served notice of the hearing.</text> </level> </level> <level label="c"> <text>The order shall contain:</text> <level label="1"> <text>a concise statement of the facts found by the Commissioner;</text> </level> <level label="2"> <text>the Commissioner’s conclusions from the facts; and</text> </level> <level label="3"> <text>the information required by § 2-204(b) of this subtitle.</text> </level> </level> <level label="d"> <text>The order may:</text> <level label="1"> <text>affirm, modify, or nullify an action already taken; or</text> </level> <level label="2"> <text>constitute the taking of new action within the scope of the notice of the hearing.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-215" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="2" subtitle_name="Enforcement"> <level label="a"> <text>An appeal under this subtitle may be taken only from:</text> <level label="1"> <text>an order resulting from a hearing;</text> </level> <level label="2"> <text>a refusal by the Commissioner to grant a hearing; or</text> </level> <level label="3"> <text>a decision issued under § 15–10A–04 of this article.</text> </level> </level> <level label="b"> <text>An appeal under this subtitle may be taken by:</text> <level label="1"> <text>a party to the hearing;</text> </level> <level label="2"> <text>an aggrieved person whose financial interests are directly affected by the order resulting from a hearing or refusal to grant a hearing; or</text> </level> <level label="3"> <text>a party to the decision issued under § 15–10A–04 of this article.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, an appeal under this subtitle shall be taken:</text> <level label="i"> <text>to the Circuit Court for Baltimore City; or</text> </level> <level label="ii"> <text>if a party to an appeal is an individual, to the circuit court of the county where the individual resides.</text> </level> </level> <level label="2"> <text>If the appeal is from the suspension or revocation of a certificate of authority of a domestic insurer or license of an insurance producer, adviser, or public adjuster, an appeal may be taken to the circuit court of the county where:</text> <level label="i"> <text>the domestic insurer has its principal place of business; or</text> </level> <level label="ii"> <text>the licensee or certificate holder resides.</text> </level> </level> </level> <level label="d"> <text>To take an appeal, a person shall file a petition for judicial review with the appropriate circuit court within 30 days after:</text> <level label="1"> <text>the order resulting from the hearing was served on the persons entitled to receive it;</text> </level> <level label="2"> <text>the order of the Commissioner denying rehearing or reargument was served on the persons entitled to receive it;</text> </level> <level label="3"> <text>the refusal of the Commissioner to grant a hearing; or</text> </level> <level label="4"> <text>the decision issued under § 15–10A–04 of this article was served on the persons entitled to receive it.</text> </level> </level> <level label="e"> <level label="1"> <text>An appeal under this subtitle shall be captioned in accordance with the Maryland Rules.</text> </level> <level label="2"> <text>On application to the court, any person may be added as a party, as the court directs, if:</text> <level label="i"> <text>the financial interests of the person are or may be directly affected by the matter on appeal; or</text> </level> <level label="ii"> <text>the person may be aggrieved by the matter on appeal.</text> </level> </level> </level> <level label="f"> <text>When a petition for judicial review is filed with the appropriate court, the court has jurisdiction over the case and shall determine whether the filing operates as a stay of the order or action from which the appeal is taken.</text> </level> <level label="g"> <level label="1"> <text>In an appeal of an order resulting from a hearing, after receiving a copy of the petition for judicial review and within the time specified in the Maryland Rules, the Commissioner shall file in the court in which the appeal is pending:</text> <level label="i"> <text>a copy of the order of the Commissioner from which the appeal is taken;</text> </level> <level label="ii"> <text>a complete transcript, certified by the Commissioner, of the record on which the order was issued; and</text> </level> <level label="iii"> <text>all exhibits and documentary evidence introduced at the hearing.</text> </level> </level> <level label="2"> <text>In an appeal of a refusal by the Commissioner to grant a hearing, within the time specified in the Maryland Rules, the Commissioner shall file in the court in which the appeal is pending certified copies of all documents on file with the Commissioner that directly relate to the matter on appeal.</text> </level> <level label="3"> <text>In an appeal of a decision issued under § 15–10A–04 of this article, after receiving a copy of the petition for judicial review and within the time specified in the Maryland Rules, the Commissioner shall file in the court in which the appeal is pending:</text> <level label="i"> <text>a copy of the decision of the Commissioner from which the appeal is taken;</text> </level> <level label="ii"> <text>a copy of the report of the independent review organization or medical expert; and</text> </level> <level label="iii"> <text>all documentary evidence provided to the Commissioner and the independent review organization or medical expert that directly relates to the matter on appeal.</text> </level> </level> </level> <level label="h"> <text>The court to which an appeal is taken may:</text> <level label="1"> <text>affirm the decision of the Commissioner;</text> </level> <level label="2"> <text>remand the case for further proceedings; or</text> </level> <level label="3"> <text>reverse or modify the decision of the Commissioner if substantial rights of the petitioners may have been prejudiced because administrative findings, inferences, conclusions, or decisions:</text> <level label="i"> <text>violate constitutional provisions;</text> </level> <level label="ii"> <text>exceed the statutory authority or jurisdiction of the Commissioner;</text> </level> <level label="iii"> <text>are made by unlawful procedure;</text> </level> <level label="iv"> <text>are affected by other error of law;</text> </level> <level label="v"> <text>are unsupported by competent, material, and substantial evidence in view of the entire record, as submitted; or</text> </level> <level label="vi"> <text>are arbitrary or capricious.</text> </level> </level> </level> <level label="i"> <text>Costs of an appeal shall be awarded as in civil actions.</text> </level> <level label="j"> <level label="1"> <text>Any party, including the Commissioner, may appeal from the judgment of the circuit court to the Appellate Court of Maryland as in other civil cases.</text> </level> <level label="2"> <text>The judgment of the circuit court may be stayed only by order of court on the giving of any security that the court considers proper.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-301" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="3" subtitle_name="Consumer Education and Advocacy Program"> <text>In this subtitle, “Program” means the Consumer Education and Advocacy Program.</text> </section> <section article="gin" article_name="Insurance" number="2-302" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="3" subtitle_name="Consumer Education and Advocacy Program"> <level label="a"> <text>There is a Consumer Education and Advocacy Program.</text> </level> <level label="b"> <text>The Commissioner may use the Consumer Affairs Unit of the Administration to carry out the Program.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-303" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="3" subtitle_name="Consumer Education and Advocacy Program"> <text>The purposes of the Program include:</text> <level label="1"> <text>providing information and helping consumers with the procedures for filing a complaint with the Commissioner against any person regulated by this article;</text> </level> <level label="2"> <text>on request, giving information about an insurer to the extent that the information lawfully is disclosable; and</text> </level> <level label="3"> <text>developing an information and assistance system to provide information about and to help consumers with:</text> <level label="i"> <text>personal insurance coverages, including health insurance and life insurance coverages;</text> </level> <level label="ii"> <text>underwriting practices;</text> </level> <level label="iii"> <text>general rating concepts;</text> </level> <level label="iv"> <text>claim procedures of insurers; and</text> </level> <level label="v"> <text>any other relevant services.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-303.1" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="3" subtitle_name="Consumer Education and Advocacy Program"> <level label="a"> <text>The Administration shall serve as the single point of entry for consumers to access any and all information regarding health insurance and the delivery of health care as it relates to health insurance, including information prepared or collected by:</text> <level label="1"> <text>the Maryland Department of Health;</text> </level> <level label="2"> <text>the Maryland Health Care Commission;</text> </level> <level label="3"> <text>the Health Services Cost Review Commission;</text> </level> <level label="4"> <text>the Department of Aging; and</text> </level> <level label="5"> <text>the Health Education and Advocacy Unit of the Attorney General’s office.</text> </level> </level> <level label="b"> <level label="1"> <text>The Administration, in cooperation with the entities listed in subsection (a) of this section and any other person it deems appropriate, shall promote the availability of the information.</text> </level> <level label="2"> <text>The Maryland Health Care Commission shall assist the Administration in presenting the information in a format that is easily understandable for consumers.</text> </level> </level> <level label="c"> <text>Implementation of this section by the Administration shall be funded through the Health Care Regulatory Fund established under § 2–112.3 of this title.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-303.2" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="3" subtitle_name="Consumer Education and Advocacy Program"> <level label="a"> <text>The Administration shall prepare annually a comparison guide of medical professional liability insurance premiums.</text> </level> <level label="b"> <text>The comparison guide shall:</text> <level label="1"> <text>list each insurer authorized to provide medical professional liability insurance in the State;</text> </level> <level label="2"> <text>include, for each specialty and territory, the base premium charged by an insurer for physicians with policy limits of $1,000,000 and $3,000,000; and</text> </level> <level label="3"> <text>include the base premium charged by an insurer for a:</text> <level label="i"> <text>hospital;</text> </level> <level label="ii"> <text>medical day care center;</text> </level> <level label="iii"> <text>hospice care program;</text> </level> <level label="iv"> <text>assisted living program; and</text> </level> <level label="v"> <text>freestanding ambulatory care facility as defined in § 19–3B–01 of the Health – General Article.</text> </level> </level> </level> <level label="c"> <text>The Administration shall publish the comparison guide required under subsection (a) of this section on its Web site and in printed form.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-304" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="3" subtitle_name="Consumer Education and Advocacy Program"> <level label="a"> <text>To carry out the Program, the Commissioner may employ a staff in accordance with the State budget.</text> </level> <level label="b"> <text>The Commissioner may designate a member of the staff of the Program to represent the interests of consumers in any Administration proceeding that is open to the public, including:</text> <level label="1"> <text>an informational hearing; and</text> </level> <level label="2"> <text>a hearing or review of insurance rates or forms.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-305" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="3" subtitle_name="Consumer Education and Advocacy Program"> <level label="a"> <text>The Commissioner may adopt regulations to carry out the Program.</text> </level> <level label="b"> <text>Each year, the Commissioner shall evaluate the Program.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-401" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="4" subtitle_name="Insurance Fraud Division"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fraud Division” means the Insurance Fraud Division in the Administration.</text> </level> <level label="c"> <text>“Insurance fraud” means:</text> <level label="1"> <text>a violation of Title 27, Subtitle 4 of this article;</text> </level> <level label="2"> <text>theft, as set out in §§ 7–101 through 7–104 of the Criminal Law Article:</text> <level label="i"> <text>from a person regulated under this article; or</text> </level> <level label="ii"> <text>by a person regulated under this article or an officer, director, agent, or employee of a person regulated under this article;</text> </level> </level> <level label="3"> <text>a violation of § 9–1106 of the Labor and Employment Article; or</text> </level> <level label="4"> <text>any other fraudulent activity that is committed by or against a person regulated under this article and is a violation of:</text> <level label="i"> <text>Title 1, Subtitle 3 of the Agriculture Article;</text> </level> <level label="ii"> <text>Title 19, Subtitle 2 or Subtitle 3 of the Business Regulation Article;</text> </level> <level label="iii"> <text>Title 14, Subtitle 29, § 11–810, or § 14–1317 of the Commercial Law Article;</text> </level> <level label="iv"> <text>the Criminal Law Article other than Title 8, Subtitle 2, Part II or § 10–614;</text> </level> <level label="v"> <text>Title 12, Subtitle 9 of the Financial Institutions Article;</text> </level> <level label="vi"> <text>§ 14–127 of the Real Property Article;</text> </level> <level label="vii"> <text>§ 6–301 of the Alcoholic Beverages and Cannabis Article;</text> </level> <level label="viii"> <text>§ 109 of the Code of Public Local Laws of Caroline County;</text> </level> <level label="ix"> <text>§ 4–103 of the Code of Public Local Laws of Carroll County; or</text> </level> <level label="x"> <text>§ 8A–1 of the Code of Public Local Laws of Talbot County.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-402" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="4" subtitle_name="Insurance Fraud Division"> <text>There is an Insurance Fraud Division in the Administration.</text> </section> <section article="gin" article_name="Insurance" number="2-403" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="4" subtitle_name="Insurance Fraud Division"> <level label="a"> <text>The head of the Fraud Division is an Associate Commissioner of Insurance.</text> </level> <level label="b"> <level label="1"> <text>The Associate Commissioner of the Fraud Division shall be appointed by the Commissioner with the approval of the Governor.</text> </level> <level label="2"> <text>The Associate Commissioner is an employee of the Administration.</text> </level> <level label="3"> <text>The Associate Commissioner reports directly to and is under the direct supervision of the Commissioner.</text> </level> </level> <level label="c"> <text>The Associate Commissioner of the Fraud Division is unclassified and is entitled to annual compensation as provided in the State budget.</text> </level> <level label="d"> <text>The Associate Commissioner of the Fraud Division is responsible for the operation of the Fraud Division and the exercise of all authority granted to the Fraud Division under this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-404" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="4" subtitle_name="Insurance Fraud Division"> <text>The Commissioner shall request the Secretary of State Police to assign one or more State Police officers to work in coordination with the Fraud Division.</text> </section> <section article="gin" article_name="Insurance" number="2-405" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="4" subtitle_name="Insurance Fraud Division"> <text>The Fraud Division:</text> <level label="1"> <text>has the authority to investigate each person suspected of engaging in insurance fraud;</text> </level> <level label="2"> <text>if appropriate after an investigation:</text> <level label="i"> <text>shall refer suspected cases of insurance fraud to the Office of the Attorney General or appropriate local State’s Attorney to prosecute the person criminally for insurance fraud;</text> </level> <level label="ii"> <text>shall notify the appropriate professional licensing board or disciplinary body of evidence of insurance fraud that involves professionals;</text> </level> <level label="iii"> <text>shall notify the appropriate professional licensing board of evidence of gross overutilization of health care services;</text> </level> <level label="iv"> <text>shall notify the Workers’ Compensation Commission of suspected cases of insurance fraud referred to the Office of the Attorney General or appropriate local State’s Attorney under subparagraph (i) of this paragraph that involve the payment of compensation, fees, or expenses under the Workers’ Compensation Law; and</text> </level> <level label="v"> <text>shall assist local and State law enforcement agencies in the prosecution of automobile theft;</text> </level> </level> <level label="3"> <text>shall compile and abstract information that includes the number of confirmed acts of insurance fraud and the type of acts of insurance fraud;</text> </level> <level label="4"> <text>in exercising its authority under this subtitle, shall cooperate with the Department of State Police, Office of the Attorney General, local State’s Attorney in the jurisdiction in which the alleged acts of insurance fraud took place, and appropriate federal and local law enforcement authorities;</text> </level> <level label="5"> <text>shall operate or provide for a toll–free insurance fraud hot line to receive and record information about alleged acts of insurance fraud;</text> </level> <level label="6"> <text>in cooperation with the Office of the Attorney General and Department of State Police, shall conduct public outreach and awareness programs on the costs of insurance fraud to the public; and</text> </level> <level label="7"> <text>shall investigate allegations of civil fraud and, if appropriate after investigation, impose administrative penalties and order restitution in accordance with § 27–408 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-406" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="4" subtitle_name="Insurance Fraud Division"> <level label="a"> <text>Notwithstanding any other provision of law, a criminal prosecution for engaging in insurance fraud may be brought in any county in the State in which:</text> <level label="1"> <text>an element of the insurance fraud was committed;</text> </level> <level label="2"> <text>the purported insured loss occurred;</text> </level> <level label="3"> <text>the insurance policy in question provides coverage;</text> </level> <level label="4"> <text>the insurer or an agent of the insurer received a false or misleading statement or document;</text> </level> <level label="5"> <text>the defendant or respondent resides; or</text> </level> <level label="6"> <text>money or other benefit was received as a result of the insurance fraud.</text> </level> </level> <level label="b"> <text>For a civil fraud violation, the Commissioner may impose administrative penalties and order restitution under § 27–408(c) of this article when one or more of the occurrences listed in subsection (a) of this section takes place in the State.</text> </level> <level label="c"> <text>If insurance fraud is determined to have occurred in any of the locations listed in subsection (a) of this section, a criminal or civil fraud action for all related violations may be joined in the same action.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-408" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="4" subtitle_name="Insurance Fraud Division"> <text>The Office of the Attorney General shall report to the Fraud Division on each case not prosecuted and the reasons why the case was not prosecuted.</text> </section> <section article="gin" article_name="Insurance" number="2-501" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="5" subtitle_name="Insurance Regulation Assessment"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Assessment” means an assessment that, subject to § 2-505(c)(3) of this subtitle, equals 60% of the Administration’s approved annual budget appropriation under this article.</text> </level> <level label="c"> <text>“Fund” means the Insurance Regulation Fund established under § 2-505 of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>“Health insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of health insurance.</text> </level> <level label="2"> <text>“Health insurer” includes:</text> <level label="i"> <text>a health maintenance organization operating under a certificate of authority issued by the Commissioner under Title 19, Subtitle 7 of the Health - General Article;</text> </level> <level label="ii"> <text>a nonprofit health service plan operating under Title 14, Subtitle 1 of this article; and</text> </level> <level label="iii"> <text>a dental plan operating under Title 14, Subtitle 4 of this article.</text> </level> </level> </level> <level label="e"> <text>“Health insurer assessment portion” means 40% of the assessment.</text> </level> <level label="f"> <level label="1"> <text>“Insurer” means an insurer or other entity authorized to engage in the insurance business in the State under a certificate of authority issued by the Commissioner.</text> </level> <level label="2"> <text>“Insurer” includes:</text> <level label="i"> <text>a health maintenance organization operating under a certificate of authority issued by the Commissioner under Title 19, Subtitle 7 of the Health - General Article;</text> </level> <level label="ii"> <text>a nonprofit health service plan operating under Title 14, Subtitle 1 of this article;</text> </level> <level label="iii"> <text>a dental plan operating under Title 14, Subtitle 4 of this article; and</text> </level> <level label="iv"> <text>the Maryland Automobile Insurance Fund.</text> </level> </level> </level> <level label="g"> <text>“Life insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of life insurance.</text> </level> <level label="h"> <text>“Life insurer assessment portion” means 26% of the assessment.</text> </level> <level label="i"> <text>“Multiple type insurer” means an insurer that engages in more than one of the following types of insurance:</text> <level label="1"> <text>life;</text> </level> <level label="2"> <text>health; or</text> </level> <level label="3"> <text>property and casualty.</text> </level> </level> <level label="j"> <level label="1"> <text>“Premium” has the meaning stated in § 1-101 of this article to the extent it is allocable to this State.</text> </level> <level label="2"> <text>“Premium” includes any amounts paid to a health maintenance organization as compensation on a predetermined basis for providing services to members and subscribers as specified in Title 19, Subtitle 7 of the Health - General Article to the extent it is allocable to this State.</text> </level> </level> <level label="k"> <level label="1"> <text>“Property and casualty insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of property and casualty insurance.</text> </level> <level label="2"> <text>“Property and casualty insurer” includes the Maryland Automobile Insurance Fund.</text> </level> </level> <level label="l"> <text>“Property and casualty insurer assessment portion” means 34% of the assessment.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-502" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="5" subtitle_name="Insurance Regulation Assessment"> <level label="a"> <text>The Commissioner shall collect an annual assessment fee from each insurer as provided in subsection (b) of this section.</text> </level> <level label="b"> <text>The assessment fee shall be calculated as follows:</text> <level label="1"> <text>for each health insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the health insurer in the prior calendar year by the total amount of gross direct premium written by all health insurers in the prior calendar year, multiplied by the health insurer assessment portion;</text> </level> <level label="2"> <text>for each life insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the life insurer in the prior calendar year by the total amount of gross direct premium written by all life insurers in the prior calendar year, multiplied by the life insurer assessment portion;</text> </level> <level label="3"> <text>for each property and casualty insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the property and casualty insurer in the prior calendar year by the total amount of gross direct premiums written by all property and casualty insurers in the prior calendar year, multiplied by the property and casualty insurer assessment portion; and</text> </level> <level label="4"> <text>for each domestic reinsurer subject to § 4–115(b)(2)(ii) and (c)(3) of this article, the assessment fee is the average of the assessment fee paid by the 100 property and casualty insurers with the highest gross direct written premium in the prior calendar year.</text> </level> </level> <level label="c"> <text>For the purpose of calculating the assessment fee in subsection (b) of this section, a multiple type insurer shall be considered either a health insurer, a life insurer, or a property and casualty insurer based on the majority of premium type written.</text> </level> <level label="d"> <text>Notwithstanding any other provision of this subtitle, the minimum assessment shall be $300 for each authorized insurer.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-503" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="5" subtitle_name="Insurance Regulation Assessment"> <level label="a"> <text>The Commissioner shall collect the annual assessment fee from each insurer as calculated in § 2-502 of this subtitle.</text> </level> <level label="b"> <text>The assessment fee collected under this section is:</text> <level label="1"> <text>in addition to any penalties or premium tax imposed under this article; and</text> </level> <level label="2"> <text>due and payable to the Commissioner on or before a date determined by the Commissioner each year.</text> </level> </level> <level label="c"> <level label="1"> <text>Failure by an insurer to pay the assessment fee on or before the due date shall subject the insurer to the provisions of §§ 4-113 and 4-114 of this article.</text> </level> <level label="2"> <text>In addition to paragraph (1) of this subsection, an assessment fee not paid on or before the due date may be subject to a penalty of 5% and interest at the rate determined under § 13-701(b)(1) of the Tax - General Article from the due date until payment is made to the Commissioner.</text> </level> <level label="3"> <text>If an additional amount is found to be due after the assessment fee has been paid to the Commissioner, the additional amount is subject to interest at 6% from the due date until payment is made to the Commissioner.</text> </level> </level> <level label="d"> <text>The total amount of the assessment fee collected by the Commissioner shall be deposited in the Fund.</text> </level> <level label="e"> <text>This section does not affect any requirement otherwise established by law for the payment of premium taxes by an insurer.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-504" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="5" subtitle_name="Insurance Regulation Assessment"> <level label="a"> <text>The assessment fee imposed on insurers under this subtitle is in lieu of any life insurance valuation fees and a reduction in specified insurance producer fees that the Commissioner had previously charged and collected under § 2-112 of this title.</text> </level> <level label="b"> <text>In determining adjusted premiums subject to the assessment fee, the Commissioner may use the premiums as stated in the report required under § 2-506(a) of this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-505" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="5" subtitle_name="Insurance Regulation Assessment"> <level label="a"> <text>There is an Insurance Regulation Fund that consists of:</text> <level label="1"> <text>all revenue received through the imposition and collection of the assessment fee under this subtitle;</text> </level> <level label="2"> <text>all revenue received through the imposition and collection of the fees set forth in § 2–112 of this title;</text> </level> <level label="3"> <text>all revenue received through the imposition and collection of the fraud prevention fee under Title 6, Subtitle 2 of this article;</text> </level> <level label="4"> <text>all revenue received through the collection of examination expenses under § 2–208 of this title;</text> </level> <level label="5"> <text>except as provided in § 2–114(a) of this title, all other fees received through the imposition and collection of fees set forth in this article; and</text> </level> <level label="6"> <text>income from investments that the State Treasurer makes for the Fund.</text> </level> </level> <level label="b"> <text>The purpose of the Fund is to pay all the costs and expenses incurred by the Administration that are related to its responsibilities to regulate the insurance activities of all insurers that engage in the insurance business in this State.</text> </level> <level label="c"> <level label="1"> <text>All the costs and expenses of the Administration shall be included in the State budget.</text> </level> <level label="2"> <text>Any expenditures from the Fund to cover costs and expenses of the Administration may only be made:</text> <level label="i"> <text>with an appropriation from the Fund approved by the General Assembly in the annual State budget; or</text> </level> <level label="ii"> <text>by the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article.</text> </level> </level> <level label="3"> <level label="i"> <level label="1"> <text>Subject to subsubparagraph 2 of this subparagraph, if, in any fiscal year, the amount of revenue collected by the Commissioner and deposited into the Fund exceeds 105% of the actual appropriations for the Administration, the excess amount shall be carried forward within the Fund.</text> </level> <level label="2"> <text>The assessment fee imposed under this subtitle shall be adjusted to maintain the Fund at a level that does not exceed 105% of the Administration’s approved annual budget.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The State Treasurer is the custodian of the Fund.</text> </level> <level label="2"> <text>The State Treasurer shall deposit payments received from the Commissioner into the Fund.</text> </level> </level> <level label="e"> <level label="1"> <text>The Fund is a continuing, nonlapsing fund and is not subject to § 7–302 of the State Finance and Procurement Article, and may not be deemed a part of the General Fund of the State.</text> </level> <level label="2"> <text>No part of the Fund may revert or be credited to:</text> <level label="i"> <text>the General Fund of the State; or</text> </level> <level label="ii"> <text>a special fund of the State, unless otherwise provided by law.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="2-506" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="5" subtitle_name="Insurance Regulation Assessment"> <level label="a"> <level label="1"> <text>On or before March 1 of each year, each insurer subject to this subtitle shall file with the Commissioner a report of the new and renewal gross direct premiums.</text> </level> <level label="2"> <text>The report shall be filed in a manner and contain the information required by the Commissioner.</text> </level> </level> <level label="b"> <text>If an insurer files its annual statement on or before March 1, and the information required under subsection (a) of this section is included in that annual statement, the insurer is not required to file a report under subsection (a) of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="2-507" title_number="2" title_name="Maryland Insurance Administration" subtitle_number="5" subtitle_name="Insurance Regulation Assessment"> <text>The Commissioner may adopt regulations necessary to implement any provision of this subtitle.</text> </section>