Title 31 — Subtitle 02. Powers and Duties — Hearings

In General. This chapter applies to all contested case hearings:

Except as provided in this chapter, COMAR 28.02.01 governs the conduct of a hearing before the Office of Administrative Hearings.

Exclusions. This chapter does not apply to the consideration of rates or contracts, the adoption of regulations, or other quasi-legislative hearings.

In this chapter, the following terms have the meanings indicated.

Terms Defined.

Scope. This regulation applies to all requests for a hearing except a request for a hearing on a proposed examination report.

A person may request a hearing under Insurance Article, §2-210(a)(2), Annotated Code of Maryland, by submitting a written statement to the Commissioner, signed by the requesting person.

Request to be Received Within 30 Days.

The request shall include the following information:

Upon receipt of a proper request, the Commissioner shall grant a hearing unless:

Scope. This regulation applies to a request for a hearing on a proposed examination report.

Proposed Examination Report.

Request for Hearing. The person being examined may request a hearing on a proposed examination report by submitting a written request to the Commissioner within 30 days after the proposed examination report is received by the person.

Contents of Hearing Request. The hearing request shall include exceptions to the proposed examination report that:

Procedure Following Hearing Request. If the Commissioner receives a request for a hearing on a proposed examination report within the 30-day period, the Commissioner:

The Commissioner may, on a case-by-case basis, delegate to the Office the authority to:

The Commissioner may revoke all or part of a delegation of authority to the Office to preside over a hearing if:

Procedure for Revocation.

The Administration or the Office shall provide notice of a hearing pursuant to State Government Article, §10-209, Annotated Code of Maryland.

Notices, decisions, orders, and other documents issued by the Administration or the Office may be served on a person by:

Notice of a hearing is sufficient:

A record shall be maintained stating:

By written request served on other parties and filed with the hearing officer not later than 20 days before the scheduled hearing, a party may require any other party to produce, within 15 days, for inspection or copying, any file, memorandum, correspondence, document, object, or tangible thing:

Unless provided by agreement of the parties, no other discovery procedure is allowed.

Copies.

Objection to Production.

A party who has responded to a request for production and who obtains or discovers, before the hearing, additional files, memoranda, correspondence, documents, objects, or tangible things that are relevant to the request for production shall supplement the response to the request promptly.

As sanction against a party that fails to comply with a request for production, the hearing officer, either on the hearing officer's own motion or by motion of the party requesting the production, may issue an order:

On request of a party, the Administration may issue subpoenas requiring the attendance and testimony of witnesses and the production, at the hearing, of any tangible items in the possession or under the control of a witness.

Subpoena Requests.

Service of Subpoenas.

Return of service shall be made by:

A person may object to a subpoena by filing a motion to quash or for other relief.

If a request for a subpoena was filed less than 15 days before the hearing date, the hearing officer may refuse to postpone the hearing based on the party's inability to serve the subpoena.

Scope. This regulation applies to all hearings except a hearing on a proposed examination report.

A hearing conducted under this chapter shall be open to the public.

Parties to Contested Case Proceeding.

The hearing officer shall conduct the hearing and may allow the case to proceed in a manner necessary to ensure the fair resolution of the issues including, but not limited to:

Formal rules of pleading or evidence need not be observed at a hearing under the provisions of this regulation.

Representation of the Administration.

Motion for Summary Decision.

The Maryland Rules of Civil Procedure may be used as a guide for resolving issues regarding the conduct of the hearing.

Scope. This regulation applies to a hearing on a proposed examination report.

Burden of Proof. At a hearing under this regulation:

Rights of Parties.

Formal rules of pleading or evidence need not be observed at a hearing under provisions of this regulation.

Representation of the Administration.

Motion for Summary Decision.

The Maryland Rules of Civil Procedure may be used as a guide for resolving issues regarding the conduct of the hearing.

At the discretion of the hearing officer, a hearing may be postponed if a written request for postponement is filed with the Administration or the Office not later than 15 days before the date of the hearing.

A hearing may not be postponed, except for good cause, when the request for postponement is filed within 15 days of the date of the hearing.

Scope. This regulation applies to a contested case where the Office has been delegated authority to conduct a contested case hearing under Regulation .04-1A of this chapter.

Contents. The administrative law judge who hears a case shall submit to the Commissioner a decision that contains whichever of the following were authorized in the Commissioner's delegation of authority to the Office for the case:

Effect of Regulations, Bulletins, Final Orders, and Preexisting Policies. Except as provided in Regulation .10-2H of this chapter, in making a decision, the administrative law judge is bound by any regulation, bulletin, final order, or settled and preexisting policy of the Commissioner to the same extent that the Commissioner is or would have been bound if the Commissioner were hearing the case.

Distribution of Decision. The Office shall send the administrative law judge's decision directly to the parties and the Commissioner.

This regulation does not apply to unauthorized insurers.

A hearing officer may issue a default order against a party other than the Administration that, after receiving proper notice, fails to appear at a hearing if:

In a hearing arising out of a charging document, order, or notice issued by the Administration, the default order shall:

In a hearing arising out of a determination, including a determination involving an administrative complaint, the hearing officer shall:

In a hearing on a proposed examination report, the default order shall:

The hearing officer shall serve the default order directly on the parties by certified mail.

Within 15 days after service of a default order, the party in default may submit to the hearing officer a written motion:

If the hearing officer finds that there is:

Scope. This regulation applies to a contested case where the Office has been delegated authority to issue proposed findings of fact, proposed conclusions of law, or a proposed order.

On receipt of a decision that contains proposed findings of fact, proposed conclusions of law, or a proposed order, the parties affected have:

Receipt under §B of this regulation is presumed to occur 3 days after the mailing of the proposed findings of fact, proposed conclusions of law, or a proposed order.

Filing Exceptions After Receipt of Transcript.

Exceptions shall be in writing unless specified otherwise by the final decision maker.

If a party elects not to file exceptions, another party may not raise the defense of failure to exhaust this administrative remedy on appeal to circuit court.

The record before the Commissioner for the exceptions shall consist of:

Transcripts.

Scope. This regulation applies to a contested case where the Office has been delegated authority to issue proposed findings of fact, proposed conclusions of law, or a proposed order.

Issuance. After consideration of the administrative law judge's proposed findings of fact, proposed conclusions of law, or proposed order, and any exceptions filed by the parties, the Commissioner shall issue a final order or a remand order.

Effect of Proposed Findings of Fact, Proposed Conclusions of Law, and Proposed Order. In reviewing the administrative law judge's proposed findings of fact, proposed conclusions of law, or proposed order, the Commissioner is:

Types of Action by the Commissioner. The Commissioner may affirm, reverse, or modify the proposed findings of fact, proposed conclusions of law, or proposed order, or remand the case to the Office for further proceedings by setting forth, with particularity, the basis for the Commissioner's reversal, modification, or remand.

Procedure When Case Remanded. If the Commissioner remands the case for further proceedings, the Commissioner may:

Rehearing. The Commissioner may, on the Commissioner's own motion, hold a rehearing.

Service of Order. The Commissioner shall serve a copy of the final order or remand order on the parties, the parties' attorneys of record, and the Office by first-class mail.

Effect of Summary Affirmance.

A licensee may not be subject to an administrative penalty or to the suspension or revocation of any certificate, license, registration, or special permit held by the licensee unless a notice of agency action under State Government Article, §10-207, Annotated Code of Maryland, is issued by the Administration to the licensee.

In the final order issued pursuant to a hearing arising out of a determination involving an administrative complaint, the hearing officer may order relief as appropriate under the relevant provisions of Health-General Article or Insurance Article, Annotated Code of Maryland.

A final order from a hearing arising out of a determination involving an administrative complaint that results in a finding against a licensee does not bar the Commissioner from subsequently issuing a notice of agency action against the licensee for the purpose of imposing an administrative penalty or suspending or revoking any certificate, license, registration, or special permit held by the licensee.

A request for a rehearing shall be made in writing to:

If the request is made:

In hearings arising under this chapter, subject to Regulation .03 of this chapter, the Commissioner may delegate to the Office of Administrative Hearings the authority to:

Hearings arising under this chapter and heard by the Office of Administrative Hearings shall be governed by COMAR 28.02.01.

Hearings arising under this chapter and heard by the Maryland Insurance Administration shall be governed by COMAR 31.02.01.

The Commissioner may revoke all or part of a delegation of authority to the Office of Administrative Hearings to preside over a hearing if the case:

Procedures for Revocation.

The seriousness of the violation;

The good faith of the violator;

The violator's history of previous violations;

The deleterious effect of the violation on the public and the insurance industry; and

The assets of the violator.

In this chapter, the following terms have the meanings indicated.

Terms Defined.

A person or governmental unit may request to the Insurance Commissioner, in writing, to inspect or copy public records of the Administration.

A written request shall contain:

If the custodian grants a written request, the custodian shall produce the record for inspection immediately, or within a reasonable period needed to retrieve the public record, not to exceed 30 days after receipt of the written request.

If the custodian denies the written request, the custodian shall do so promptly, but not later than 30 days after receipt of the written request. Within 10 working days, the custodian shall provide to the applicant a written statement that gives:

If the custodian reasonably believes that it will take more than 10 working days to produce the public record, the custodian shall indicate in writing or by electronic mail within 10 working days after receipt of the request:

If the custodian denies the written request, the custodian shall permit inspection of any part of the record that is subject to inspection.

The custodian shall deny inspection of all or any part of a public record as provided in General Provisions Article, Title 4, Subtitle 3, Annotated Code of Maryland.

With the consent of the applicant, any time limit imposed by §§A and B of this regulation may be extended for an additional period not to exceed 30 days.

The official custodian may temporarily deny the request in writing, if the official custodian believes the inspection of the public record would cause substantial injury to the public interest.

Within 10 working days of the denial, the official custodian shall petition the appropriate circuit court for an order permitting continued denial or restriction of access.

Notice of the application filed with the circuit court shall be served on the applicant as provided for service of process by the Maryland Rules of Procedure.

If a compelling public purpose exists under General Provisions Article, §4-333(c)(1), Annotated Code of Maryland, the custodian may permit inspection of insurance licensing data, including the application record, on individuals other than that data specified under General Provisions Article, §4-333(b), Annotated Code of Maryland, as set forth in this regulation.

Complaints, including the number, nature, and administrative status of the complaints, against the individual who is the subject of the insurance licensing record may be disclosed if the person requesting the disclosure:

A document relating to insurance licensing data, including the application record, on the individual who is the subject of the insurance licensing record may be disclosed if the person requesting the disclosure is affiliated with:

The fee schedule for copies of records is as follows:

If the official custodian is unable to copy a record within the Administration:

Before copying a record, the official custodian shall estimate the cost of reproduction and either obtain the agreement of the applicant to pay the cost or demand prepayment of any estimated fee before reproducing the record.

Except as provided in §E of this regulation, the official custodian may charge reasonable fees for the search for, preparation of, and reproduction of a public record prepared, on request of the applicant, in customized format; and the actual costs of the search for, preparation, and reproduction of a public record in standard format, including media and mechanical processing costs. The staff and attorney review costs included in the calculation of such actual costs shall be prorated to reflect each individual’s salary and actual time attributable to the search for and preparation of a public record under this section.

The official custodian may not charge any search or preparation fee for the first 2 hours of official or employee time that is needed to respond to a request for information.

Upon request, the official custodian may waive or reduce any fee charged pursuant to this regulation if the applicant asks for a waiver, is indigent, and files an affidavit of indigency; or, if after consideration of the ability of the applicant to pay the fee and other relevant factors, the official custodian determines that the waiver would be in the public interest.

If the applicant requests that copies be mailed or delivered to the applicant, the official custodian may charge the applicant for the cost of postage or delivery to the applicant.

Time of Inspection. An applicant may inspect any public record that the applicant is entitled to inspect during the normal working hours of the Insurance Administration.

Place of Inspection. The place of inspection shall be the place where the document is located unless the custodian, after taking into account the applicant's expressed wish, determines that another place of inspection is more suitable and convenient.

This chapter applies to quasi-legislative hearings that the Insurance Commissioner conducts to gather information before making a decision or taking an action.

This chapter does not apply to contested case hearings.

The time and location of the hearing;

The purpose of the hearing; and

Any other information required by applicable law.

The order of presentation; and

Time limits for questions and testimony.

The Insurance Commissioner or a designee of the Insurance Commissioner may:

The Insurance Commissioner or a designee of the Insurance Commissioner shall give all persons present who wish to testify an opportunity to do so, but may limit repetitious testimony.

The Insurance Commissioner or a designee of the Insurance Commissioner may:

The rules of evidence do not apply to a hearing held under this chapter.

The Insurance Commissioner or designee of the Insurance Commissioner shall receive and mark all exhibits offered in testimony if they are relevant to the hearing.

At the discretion of the Maryland Insurance Administration and unless otherwise required by law, the Administration or a court reporter service shall stenographically record verbatim or tape record a hearing held under this chapter.

If a court reporter service records the hearing, a person who desires a copy of a transcript of the recording may purchase a copy from the court reporter service.

If an employee of the Maryland Insurance Administration records the hearing:

The Insurance Commissioner or a designee of the Insurance Commissioner controls the record of a hearing held under this chapter.

The Insurance Commissioner or a designee of the Insurance Commissioner shall assemble a record that consists of:

Postpone or continue a hearing; and

Keep the record open beyond the date of the hearing.