# COMAR Title 31 — Maryland Insurance Administration

## Subtitle 01 — General Provisions

### Chapter 01 — General

**Authority:** Insurance Article, §2-109, Annotated Code of Maryland

**Administrative History:** Effective date: June 20, 1970

**Administrative History:** Appendix “B” amended effective March 6, 1989 (16:4 Md. R. 496)

**Administrative History:** Chapter recodified from COMAR 09.30.01 to COMAR 31.01.01 effective September 7, 1998 (25:18 Md. R. 1439)

**Administrative History:** Regulation .01 amended effective November 9, 2015 (42:22 Md. R. 1379)

**Administrative History:** Regulation .03C amended effective May 23, 2005 (32:10 Md. R. 926)

**Administrative History:** Regulation .03H adopted effective January 1, 2003 (29:20 Md. R. 1591)

**Administrative History:** Regulation .04 amended effective May 23, 2005 (32:10 Md. R. 926); November 9, 2015 (42:22 Md. R. 1379)

**Administrative History:** Regulation .05 amended effective May 23, 2005 (32:10 Md. R. 926); November 9, 2015 (42:22 Md. R. 1379)

#### Regulation .01 Authority and Purpose.

*COMAR 31.01.01.01*

This chapter is promulgated as an aid to carry out the statutory provisions set forth in the Insurance Article, Annotated Code of Maryland. Its purpose is to establish standards for the construction and application of all regulations heretofore and hereafter made in order to permit brevity, avoid needless repetition of language, and facilitate reference to related Code sections.

#### Regulation .02 Applicability.

*COMAR 31.01.01.02*

This chapter applies to all persons subject to any laws enforced by the Maryland Insurance Administration.

#### Regulation .03 Procedure.

*COMAR 31.01.01.03*

A. Each regulation made, amended, altered, or modified shall be deemed to contain or be subject to the provisions of this regulation, whether or not it is incorporated by reference or by express language.

B. References. Any reference to articles not otherwise designated means articles of the Annotated Code of Maryland, as amended, as of the date of effectiveness of the subject regulation. Any reference to the Article or the Insurance Article or to an individual article not otherwise designated means Insurance Article, Annotated Code of Maryland. Any Code section reference not otherwise designated means the section of the Insurance Article so numbered. Any section, subsection, paragraph, or subparagraph reference not designated as a Code section and not otherwise designated means the section, subsection, paragraph, or subparagraph so numbered of the regulation in which the reference appears.

C. Definitions.

  (1) Unless a word is expressly defined in this title and the definition is applicable to a regulation or part of a regulation, any word used in any regulation shall have the meaning provided in the Insurance Article if applicable and as limited in the Insurance Article, including the list of definitions contained in Regulation .04 of this chapter.

  (2) Notwithstanding §C(1) of this regulation, in the case of a conflict between a definition in the Insurance Article and a definition in this title, the definition in the Insurance Article is controlling.

D. Interpretation. If there is an ambiguity in a regulation which permits an interpretation or application to a person or circumstance in conflict with the Insurance Article, the ambiguity shall be resolved so as to be in conformity with the Insurance Article.

E. Penalties. In addition to any other penalty provided, willful violation of any regulation issued under the provisions of Insurance Article, §2-109, Annotated Code of Maryland, shall subject the violator to such penalties as may be applicable under the Insurance Article for violation of the provision to which the regulation relates. A penalties section reference list is attached as Regulation .05 of this chapter but it should not be construed to represent necessarily a complete listing of all penalties provided in the Insurance Article.

F. Severability. If any provision of any regulation or the application of the regulation to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the regulation which can be given effect without the invalid provision or application, and for this purpose the provisions of every regulation are declared to be separable.

G. Gender and Number. The use of a masculine form in any regulation is deemed to include the feminine form unless the contrary is explicitly stated or clearly implied. The use of the singular of any word in any regulation is deemed to include the plural unless the contrary is explicitly stated or clearly implied.

H. “Includes” or “including” means, unless the context requires otherwise, includes or including by way of illustration and not by way of limitation.

#### Regulation .04 Definitions Section Reference List.

*COMAR 31.01.01.04*

Definitions
            Section
          
        
        
          
            Admitted Assets
            5-101
          
          
            Adviser
            10-201(b)
          
          
            Affiliate
            7-101(b)
          
          
            Alien Insurer
            1-101(c)
          
          
            Ancillary State
            9-201(b)
          
          
            Annuity
            1-101(d)
          
          
            Annuity Contract
            1-101(e)
          
          
            Association
            25-401(b)
          
          
            Attorney in fact
            3-212(a)
          
          
            Authorized Insurer
            1-101(g)
          
          
            Blanket Health Insurance
            15-305
          
          
            Burial Insurance
            1-101(h)
          
          
            Casualty Insurance
            1-101(i)
          
          
            Commissioner
            1-101(k)
          
          
            Control
            7-101(c)
          
          
            Controlled by
            7-101(c)
          
          
            Controlling
            7-101(c)
          
          
            Covered Claim
            9-301(d)
          
          
            Delinquency Proceedings
            9-201(d)
          
          
            Domestic Insurer
            1-101(m)
          
          
            Domiciliary State
            9-201(e)
          
          
            Doing an Insurance Business in This State
            4-205(c)
          
          
            Essential Property Insurance
            25-401(d)
          
          
            Foreign Country
            9-201(f)
          
          
            Foreign Insurer
            1-101(n)
          
          
            Franchise Health Insurance, Employees
            15-1102(a)
          
          
            Fraternal Benefit Societies, Society
            8-402
          
          
            General Assets
            9-201(g)
          
          
            Group Health Insurance
            15-302
          
          
            Group Health Insurance, Employees
            15-302
          
          
            Health Insurance
            1-101(p)
          
          
            Impaired Insurer
            9-201(h)
          
          
            Independent Insurance Producer
            1-101(q)
          
          
            Industrial Life Insurance
            1-101(r)
          
          
            Insurable Interest
            12-301
          
          
            Insurance
            1-101(s)
          
          
            Insurance Business
            1-101(t)
          
          
            Insurance Holding Company
            7-101(d)
          
          
            Insurance Holding Company System
            7-101(e)
          
          
            Insurance Producer
            1-101(u)
          
          
            Insurer
            1-101(v)
          
          
            Life Insurance
            1-101(x)
          
          
            Life Insurer
            1-101(y)
          
          
            Lodge System
            8-402(b)
          
          
            Marine Insurance
            1-101(z)
          
          
            Mutual Insurer
            1-101(bb)
          
          
            Net Direct Written Premiums
            9-301(g)
          
          
            Person
            1-101(dd)
          
          
            Policy
            1-101(ee)
          
          
            Preferred Claims
            9-227(a)
          
          
            Premium
            1-101(ff)
          
          
            Premium Finance Agreement
            23-101(b)
          
          
            Premium Finance Company
            23-101(c)
          
          
            Premiums Written
            25-401(f)
          
          
            Property Insurance
            1-101(gg)
          
          
            Public Adjuster
            10-401(d)
          
          
            Qualified Jurisdiction
            5-901(d)
          
          
            Qualified United States Financial Institution
            5-901(e)
          
          
            Receiver
            9-201(j)
          
          
            Reciprocal Insurance
            1-101(hh)
          
          
            Reciprocal Insurer
            1-101(ii)
          
          
            Reciprocal State
            9-201(k)
          
          
            Reinsurance
            1-101(jj)
          
          
            Residents
            27-701
          
          
            Representative Form of Government
            8-402(c)
          
          
            Secured Claim
            9-201(l)
          
          
            Special Deposit Claim
            9-201(m)
          
          
            State
            1-101(mm)
          
          
            State, Impaired Entities
            9-201(n)
          
          
            Stock Insurer
            1-101(nn)
          
          
            Subsidiary
            7-101(f)
          
          
            Surety Insurance
            1-101(oo)
          
          
            Title Insurance
            1-101(qq)
          
          
            Ultimate Controlling Person
            7-101(h)
          
          
            Unauthorized Insurer
            1-101(rr)
          
          
            Under Common Control With
            7-101(c)
          
          
            Unfair & Deceptive Acts or Practices in the Business of Insurance
            27-201
          
          
            Unfair Methods of Competition
            27-201
          
          
            Wet Marine and Transportation Insurance
            1-101(ss)
          
          
            Wholesale Life Insurance
            1-101(tt)

#### Regulation .05 Penalties Section Reference List.

*COMAR 31.01.01.05*

Section
          
        
        
          
            Annual Statement Filing—Penalty
            4-116
          
          
            Insurance Producer—Fine in Lieu of Revocation, etc.
            10-126(c)
          
          
            Insurance Producer—Licenses
            10-131
          
          
            Insurance Producer—License Revocation, etc.
            10-126
          
          
            Insurance Producer—Restitution May Be Required
            10-126(d)
          
          
            Enforcement in Courts
            2-201
          
          
            False Applications, etc.
            27-406
          
          
            Fraternal Benefit Society, Domestic—Injunction, etc.
            8-464
          
          
            Fraternal Benefit Society—License Revocation, etc.
            8-424(e)
          
          
            Fraternal Benefit Society—Misrepresentation
            8-468
          
          
            General Criminal Penalty, Willful Violation
            1-301
          
          
            Insurance Adviser—License Revocation, etc.
            10-212
          
          
            Insurer—Certificate of Authority Revocation, etc.
            4-113, 8-424(e), 9-308(b)
          
          
            Insurer—Penalties in Lieu of Revocation, etc.
            4-113(d)
          
          
            Nonprofit Health Service Plans—License Revocation
            14-112
          
          
            Nonprofit Health Service Plans—Criminal Penalties
            14-140
          
          
            Premium Finance Registrations—Revocation & Fines
            23-208, 23-209
          
          
            Rating Violation—Casualty & Surety Insurance
            11-232
          
          
            Rating Violation—Property & Marine Insurance
            11-232
          
          
            Rating Violation—Title Insurance
            11-409
          
          
            Reciprocal Insurer—Certificate of Authority Revocation
            3-208
          
          
            Rules and Regulations
            2-109(f)
          
          
            Surplus Lines—Broker's Licenses
            3-317
          
          
            Surplus Lines—Evidence of Insurance—Misdemeanor
            3-326
          
          
            Unauthorized Insurers Premium Penalty For Late Payment
            4-211
          
          
            Unauthorized Insurers Act Violation
            4-212
          
          
            Unauthorized Insurers Premium Penalty
            4-209
          
          
            Undefined Unfair Trade Practices
            27-104
          
          
            Unfair Claim Settlement Practices
            27-301—27-305
          
          
            Unfair Trade Practices, Cease and Desist
            27-103
          
          
            Witnesses and Evidence, Failure to Comply With Subpoena, Inquiry
            2-203