In General. This chapter applies to all contested case hearings: Heard by the Administration; or Delegated by the Administration to the Office of Administrative Hearings under State Government Article, §10-205, Annotated Code of Maryland. 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. “Administration” means the Maryland Insurance Administration. “Administrative complaint” means a document that: Is received by the Commissioner from any person; and Alleges a violation of: A law or regulation enforced by the Commissioner; or An order issued by the Commissioner. Contested Case. “Contested case” has the meaning stated in State Government Article, §10-202(d), Annotated Code of Maryland. “Contested case” includes a proceeding: Arising out of a determination made by the Commissioner; Arising out of a charging document, order, or notice issued by the Commissioner; Regarding a license, certificate, registration, or special permit; On a proposed examination report; or Arising out of any other act of, threatened act of, or failure to act by the Commissioner that aggrieves a person. “Contested case” does not include: A hearing on the approval or disapproval of a rate filing or a form filing; or Any other quasi-legislative hearing. Determination. “Determination” means a decision by the Commissioner that requires the Commissioner to provide the opportunity for a hearing to a person aggrieved by the decision under Insurance Article, §2-210, Annotated Code of Maryland. “Determination” includes: A decision as to whether a person against whom an administrative complaint has been received violated a law, regulation, or order; and An order issued under Insurance Article, §2-204, Annotated Code of Maryland. Examination Report. “Examination report” means a report of the examination of: An authorized insurer, management company of an authorized insurer, subsidiary owned or controlled by an authorized insurer, rating organization, or authorized health maintenance organization that is subject to examination under Insurance Article, §2-205, Annotated Code of Maryland; An insurance producer, surplus lines broker, general agent, adjuster, public adjuster, adviser, or other person that is subject to examination under Insurance Article, §2-206, Annotated Code of Maryland; An accredited reinsurer that is subject to examination under Insurance Article, Title 5, Subtitle 9, Annotated Code of Maryland; A third party administrator that is subject to examination under Insurance Article, §8-319, Annotated Code of Maryland; A fraternal benefit society that is subject to examination under Insurance Article §8-461 or 8-462, Annotated Code of Maryland; An accepted fronting reinsurer that is subject to examination under Insurance Article, §13-116, Annotated Code of Maryland; A nonprofit health service plan that is subject to examination under Insurance Article, §14-125, Annotated Code of Maryland; A dental plan organization that is subject to examination under Insurance Article, §14-411, Annotated Code of Maryland; A private review agent that is subject to examination under Insurance Article, §15-10B-19, Annotated Code of Maryland; A premium finance company that is subject to examination under Insurance Article, §23-103, Annotated Code of Maryland; A managed care organization that is subject to examination under Health-General Article, §15-102.3, Annotated Code of Maryland; A provider-sponsored organization that is subject to examination under Health-General Article, Title 19, Subtitle 7A, Annotated Code of Maryland; The Chesapeake Employers’ Insurance Company, which is subject to examination under Insurance Article, §24-304(e)(1), Annotated Code of Maryland; or Any other person that is subject to examination by the Commissioner under any other provision of law. “Examination report” includes: A financial examination report; and A market conduct examination report. “Hearing officer” means: The Maryland Insurance Commissioner or the Commissioner's authorized designee under Insurance Article, §2-210(d), Annotated Code of Maryland; or An administrative law judge. “Licensee” means a person holding a certificate of authority, license, registration, or special permit issued by the Administration or who has other similar authority to operate under the regulatory authority of the Administration. “Office” means the Office of Administrative Hearings. “Proposed examination report” means an examination report that: The Commissioner mails to the person examined: At the conclusion of an examination; and Before filing the examination report; and Informs the person being examined of the person's right to request a hearing pursuant to Regulation .04C of this chapter. 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 be received by the Commissioner within 30 days of the date of the letter notifying the party of the Commissioner's action, intention to act, or failure to act. In calculating the 30-day period, the date of the letter notifying the party of the Commissioner's action, intention to act, or failure to act is not included. The end of a day is considered to be 11:59 p.m. Eastern Time. The last day of the 30-day period is included unless it is a Saturday, Sunday, legal holiday, or a day that the Administration is closed for a part of the day. If the last day of the 30-day period is a Saturday, Sunday, legal holiday, or a day that the Administration is closed for a part of the day, the 30-day period runs until the end of the next day which is not a Saturday, Sunday, legal holiday, or a day that the Administration is closed for a part of the day. Intermediate Saturdays, Sundays, legal holidays, and days that the Administration is closed for a part of the day shall be counted toward the 30-day period. The request shall include the following information: The action or non-action of the Commissioner causing the person requesting the hearing to be aggrieved; The facts related to the incident or incidents about which the person requests the Commissioner to act or not to act; and The ultimate relief requested. Upon receipt of a proper request, the Commissioner shall grant a hearing unless: In viewing the facts set forth by the person making the request, in the light most favorable to that person, the Commissioner has no authority to take action; The Commissioner determines that the request is frivolous or made in bad faith; The request does not contain the information required by these regulations; The request is untimely; or At the end of the Commissioner's review, the request is moot. Scope. This regulation applies to a request for a hearing on a proposed examination report. Proposed Examination Report. At least 30 days before filing a proposed examination report, the Commissioner shall mail a copy of the proposed examination report to the person that was examined. If the Commissioner intends to impose a fine or other penalty or require restitution or other remedy as a result of the findings of the proposed examination report, the Commissioner may include with the proposed examination report: The amount of the fine; The amount or nature of the restitution; and The nature of any other penalty or remedy. 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: Specifically identify: The factual assertions in the proposed examination report that the person is challenging; and Any errors of law that the person contends are contained in the proposed examination report; State the nature of the relief that the person is demanding; and State the grounds for relief that the person is demanding. 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: Shall grant a hearing on the exceptions to the proposed examination report; and May not file the proposed examination report until after: The hearing is held; and The Commissioner makes any modifications to the proposed examination report that the Commissioner considers proper. The Commissioner may, on a case-by-case basis, delegate to the Office the authority to: Conduct a contested case hearing; and Issue: Proposed or final findings of fact; Proposed or final conclusions of law; Proposed or final findings of fact and conclusions of law; or A proposed or final order. The Commissioner may revoke all or part of a delegation of authority to the Office to preside over a hearing if: The case: Involves novel or unanticipated factual or legal issues; Has significant social, fiscal, or legal issues; Involves policy issues of general applicability; or Requires further investigation; or The Commissioner determines that revocation of all or part of the delegation of authority is otherwise in the public interest. Procedure for Revocation. The Commissioner shall provide written notice of a revocation of hearing authority to all parties and the Office. The written notice shall contain a brief statement of the reason for the revocation. Delegation of authority to hear a contested case may be revoked at any time before the earlier of the: Issuance of a ruling by the administrative law judge on a substantive issue; or Taking of oral testimony from the first witness. The Commissioner shall specify whether all or part of the delegation to hear a contested case has been revoked. If only part of the delegation has been revoked, the Commissioner shall specify in the written notice of revocation the portions of the contested case for which the delegation has been revoked. On revocation of the delegation, the Commissioner shall: Refer the contested case for further investigation; Set the contested case for a hearing with the Commissioner or the Commissioner's designee acting as the hearing officer; or Dismiss the contested case. 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: Personal delivery to the person; Mailing a copy of the document, first class, postage prepaid, to the person's address of record on file with the Administration; Mailing a copy of the document, first class, postage prepaid, to the person's last known address if different from the person's address of record on file with the Administration; Mailing a copy of the document by certified mail to the person's address of record on file with the Administration or last known address; or Delivering or mailing a copy of the document, first class, postage prepaid, to the person's attorney, if the person is represented by counsel. Notice of a hearing is sufficient: If the initial notice of a hearing is sent by regular mail to a party at the party's business and resident addresses on file with the Commissioner in accordance with Insurance Article, §§10-111(a)(4) and 10-117, Annotated Code of Maryland; and Upon a satisfactory showing that the notice was sent not less than 30 calendar days before the hearing, unless a different time period is required by law. A record shall be maintained stating: To whom the initial notice was sent; The address to which the initial notice was sent; The date the initial notice was sent; The manner of service; and The name of the person who sent the initial notice. 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: Relevant to the subject matter of the case; and Not privileged. Unless provided by agreement of the parties, no other discovery procedure is allowed. Copies. Copies of requested documents and records shall be made at the expense of the party making the request. The charge for copies of requested documents and records may be waived by the custodian of the documents in accordance with State Government Article, §10-621(e), Annotated Code of Maryland, or other applicable law. Objection to Production. A party may object to the production of a file, memorandum, correspondence, document, object, or tangible thing by filing a motion to quash discovery or for other relief. The hearing officer, for cause shown, may issue any order that justice requires to protect the party from annoyance, embarrassment, oppression, or undue burden or expense. 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: Refusing to allow the party to support or oppose designated claims or defenses; Prohibiting the party from introducing designated matters into evidence; Striking any allegations or charges made by the party failing to produce; Staying further proceedings until the discovery is provided; or Dismissing the action or any part of it. 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. A request for a subpoena shall: Be made, in writing, to the Administration; and Specify the: Name and full address of the person to be subpoenaed; and Name, full address, and telephone number of the party requesting the subpoena. A subpoena that requests the production of tangible items, books, papers, or other documents shall describe those items with particularity. A subpoena request need not be served on all parties. Service of Subpoenas. The party requesting the subpoena shall be responsible for proper service of the subpoena. Except as provided in §C(3) of this regulation, subpoenas shall be served by hand delivery by an individual 18 years old or older who is not a party to the proceeding by delivering a copy to the person named or to an agent authorized by appointment or by law to receive service for the person named or as permitted by Rule 2-121(a)(3)of the Maryland Rules of Civil Procedure. Service of a subpoena upon a party represented by an attorney may be made by service upon the attorney under Rule 1-321(a) of the Maryland Rules of Civil Procedure. In a case where the licensee to be served resides out of Maryland, the subpoena may be served by certified mail. Return of service shall be made by: Affidavit, if hand delivered; or Return receipt, if mailed. 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 necessary parties to a contested case proceeding are: The Administration; A person against whom the Commissioner has: Received an administrative complaint; or Issued a charging document, order, or notice; and A person who requests a hearing due to being aggrieved by: A determination made by the Commissioner; or Any other act of, threatened act of, or failure to act by the Commissioner. A person who is not a necessary party under §C(1) of this regulation, including a person who submitted an administrative complaint to the Commissioner, may become a party by intervention in accordance with Insurance Article, §2-213(c), Annotated Code of Maryland. Election by Administration Not to Participate. The Administration may elect not to participate in all or part of a contested case proceeding by filing a notice with the hearing officer or final decision maker at any time. The Administration may revoke an election not to participate in all or part of a contested case proceeding by filing a notice with the hearing officer or final decision maker at any time. 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: Placing reasonable limitations on the number of witnesses a party may call; Excluding evidence which is repetitive, irrelevant, immaterial, or otherwise not probative; and Ruling on all procedural matters, including motions, objections, and offers of proof. Formal rules of pleading or evidence need not be observed at a hearing under the provisions of this regulation. Representation of the Administration. The Commissioner may designate an attorney to represent the Administration. Once the record is closed by the hearing officer, the attorney who represented the Administration may not have a further role in the decision process of the Administration. Motion for Summary Decision. A party may move for summary decision on any appropriate issue in the case. A hearing officer may grant a proposed or final summary decision if the hearing officer finds that: There is no genuine issue of material fact; and A party is entitled to prevail as a matter of law. 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: The proposed examination report is part of the record; and The party that requested the hearing on the proposed examination report has the burden of going forward and the burden of proving its exceptions to the proposed examination report. Rights of Parties. Subject to §C(2) of this regulation, the hearing officer shall allow a party to a hearing under this regulation to: Appear in person and be represented by counsel; Be present while evidence is given; Have reasonable opportunity to: Inspect all documentary evidence that is offered for introduction into the record; and Examine witnesses during the course of the hearing; and Present evidence. The hearing officer shall conduct the hearing and allow the case to proceed in a manner necessary to ensure the fair resolution of the issues including, but not limited to: Placing reasonable limitations on the number of witnesses a party may call; Excluding evidence that is repetitive, irrelevant, immaterial, or otherwise not probative; and Ruling on all procedural matters, including motions, objections, and offers of proof. Formal rules of pleading or evidence need not be observed at a hearing under provisions of this regulation. Representation of the Administration. The Commissioner may designate an attorney to represent the Administration. Once the record is closed by the hearing officer, the attorney who represented the Administration may not have a further role in the decision process of the Administration. Motion for Summary Decision. A party may move for summary decision on any appropriate issue in the case. A hearing officer may grant a proposed or final summary decision if the hearing officer finds that: There is no genuine issue of material fact; and A party is entitled to prevail as a matter of law. 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: Proposed or final findings of fact; Proposed or final conclusions of law; Proposed or final findings of fact and conclusions of law; or A proposed or final order. 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 Commissioner, the party failing to appear is the person against whom the charging document, order, or notice was issued; In a hearing arising out of a determination involving an administrative complaint, the party failing to appear is a necessary party under Regulation .07C of this chapter; or In any other contested case hearing, the party failing to appear is the person that requested the hearing. In a hearing arising out of a charging document, order, or notice issued by the Administration, the default order shall: State the facts supporting the finding of proper notice to the person against whom the charging document, order, or notice was issued; Adopt the facts and violations of law as alleged by the Administration in its charging document, order, or notice as if by admission of the person against whom the charging document, order or notice was issued; and Adopt the sanction requested by the Administration at the hearing. In a hearing arising out of a determination, including a determination involving an administrative complaint, the hearing officer shall: If the nondefaulting party is requesting that the determination be upheld, issue a default order that: States the facts supporting the finding of proper notice to the party failing to appear; and Upholds the determination; or If the nondefaulting party is requesting that the determination be reversed or modified: Allow the party to present its case as to why the determination should be reversed or modified; and Issue a default order that: States the facts supporting the finding of proper notice to the party failing to appear; Makes any appropriate findings of fact or law; and Orders relief as appropriate under the relevant provisions of the Health-General Article or Insurance Article, Annotated Code of Maryland. In a hearing on a proposed examination report, the default order shall: State the facts supporting the finding of proper notice to the person that was examined; Adopt the facts and violations of law as alleged by the Administration in the proposed examination report as if by admission of the person that was examined; and Adopt the sanctions included with the proposed examination report. 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: Requesting that the default order be vacated or modified; and Stating the grounds for the request. If the hearing officer finds that there is: Good cause to excuse the default, the hearing officer may: Vacate or modify the default order, and Schedule the case for further appropriate proceedings; or Not good cause to excuse the default, the Commissioner shall: Deny the motion, and Affirm the default order as the final order. 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: 20 days after receipt to file exceptions to the proposed findings of fact, proposed conclusions of law, or proposed order with the Commissioner; or 10 days to: File a written request for a transcript with the Commissioner in order to file exceptions; or File with the Commissioner a copy of that party's written request to its private stenographer for the party's preparation of a transcript based on its own record of the testimony in order to file exceptions. 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. If a party requests a transcript under §B(2) of this regulation, the party shall have 30 days after the filing of the transcript to file exceptions with the Commissioner. Unless extended by order of the Commissioner, the party requesting the transcript shall file the transcript with the Commissioner within 60 days after the date on which the transcript was requested. 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: The administrative law judge's findings and conclusions, including the findings of fact, conclusions of law, and proposed order; Any exceptions filed by a party; Any response to exceptions filed by a party; Any evidence submitted by a party; Notice to the parties of the hearing; Any documentary evidence admitted into evidence by the administrative law judge; and The transcript of the hearing before the administrative law judge, if requested and filed by one of the parties or the Commissioner. Transcripts. A party who desires to have the transcript made part of the record shall, at the party's own expense, file three copies of the transcript, or its relevant portions, with the Commissioner on receipt of the transcript. If a transcript has already been prepared, the Commissioner shall make the transcript part of the record in the contested case. If a transcript is prepared based on the Office's record of the testimony and a transcript is prepared based on a party's own record of the testimony, the transcript based on the Office's record of the testimony is: The official transcript; and Controlling in the event of any conflict between the two transcripts. If the transcript is not filed or otherwise made part of the record in the contested case, parties may not refer in their exceptions to any testimony before the administrative law judge not incorporated into the administrative law judge's findings and conclusions. If all parties agree that the questions presented for review to the final decision maker can be determined without an examination of the entire transcript, the parties may file a statement showing how the questions arose and setting forth the facts or allegations that are essential to a determination of those issues. 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: Bound by the findings of fact that are supported by competent, material, and substantial evidence; and Not bound by any legal analysis, proposed conclusions of law, or proposed order. 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: Refer the case back to the Office; or Retain the case to be heard by the Commissioner. 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. If the Commissioner issues a final order that summarily affirms the proposed order of an administrative law judge without discussing the facts and legal issues and without expressly adopting the administrative law judge's legal analysis and proposed conclusions of law, neither the final order nor the proposed order is precedent within the rule of stare decisis. Notwithstanding §H(1) of this regulation, a final order of the Commissioner that summarily affirms the proposed order of an administrative law judge without discussing the facts and legal issues and without expressly adopting the administrative law judge's legal analysis and proposed conclusions of law may be cited and relied on in a proceeding before the Commissioner, the Office, or a court: When relevant under the doctrine of the law of the case, res judicata, or collateral estoppel; or In any subsequent disciplinary proceeding involving a party to the final order. Subject to Insurance Article, §2-215(g), Annotated Code of Maryland, if a party appeals from a final order of the Commissioner that summarily affirms the proposed order of an administrative law judge, in addition to filing the final order of the Commissioner with the court in which the appeal is pending, the Commissioner also shall file a copy of the proposed order of the administrative law judge. 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. The hearing officer shall sign the final order following a hearing. The final order is effective when issued, unless a different date is specified in the decision. A copy of the final order shall be filed with the Administration and served on all parties to the hearing. A request for a rehearing shall be made in writing to: The Commissioner in a contested case heard by the Administration; The Commissioner in a contested case where the Office has been delegated authority to hear the contested case but the Commissioner has retained authority to issue the final order; or The administrative law judge in a contested case where the Office has been delegated authority to issue a final order. If the request is made: Within 10 days after the issuance of the final order, the request may be granted by the Commissioner or administrative law judge for any reason; More than 10 days after the issuance of the final order, the request may be granted only on a determination by the Commissioner or administrative law judge that the final order was a result of fraud, mistake, or inadvertence; or More than 30 days after the issuance of the final order, the request may not be granted. The Administration or the Office may correct an order if, upon review, the final order was issued as a result of fraud, mistake, or inadvertence or contains a clerical error. Insurance Article, §§2-109 and 2-205—2-215; State Government Article, §10-206; Annotated Code of Maryland Effective date: June 2, 1997 (24:11 Md. R. 793) Regulation .03 amended as an emergency provision effective July 1, 1997 (24:17 Md. R. 1213); amended permanently effective November 17, 1997 (24:23 Md. R. 1610) Regulation .08 amended as an emergency provision effective April 13, 1998 (25:10 Md. R. 742); emergency status expired October 10, 1998 Chapter recodified from COMAR 09.31.18 to COMAR 31.02.01 effective September 7, 1998 (25:18 Md. R. 1439) Chapter revised effective February 4, 2002 (29:2 Md. R. 95) Regulation .05D amended effective October 10, 2005 (32:20 Md. R. 1657) Regulation .05-1 adopted effective October 10, 2005 (32:20 Md. R. 1657) Chapter revised effective May 8, 2006 (33:9 Md. R. 797) Regulation .02B amended effective February 1, 2016 (43:2 Md. R. 128) Regulation .03C amended effective October 9, 2006 (33:20 Md. R. 1618) Regulation .05 amended effective January 29, 2007 (34:2 Md. R. 139) Regulation .06C amended effective October 21, 2019 (46:21 Md. R. 894) Regulation .07 amended effective October 21, 2019 (46:21 Md. R. 894) Regulation .08 amended effective October 21, 2019 (46:21 Md. R. 894) Effective date: June 2, 1997 (24:11 Md. R. 793) Regulation .03 amended as an emergency provision effective July 1, 1997 (24:17 Md. R. 1213); amended permanently effective November 17, 1997 (24:23 Md. R. 1610) Regulation .09 amended as an emergency provision effective April 13, 1998 (25:10 Md. R. 742); emergency status expired October 10, 1998 Chapter recodified from COMAR 09.31.19 to COMAR 31.02.02 effective September 7, 1998 (25:18 Md. R. 1439) Regulation .08 amended as an emergency provision effective September 14, 1999 (26:21 Md. R. 1627); emergency status expired March 11, 2000 Regulation .08 amended effective April 3, 2000 (27:6 Md. R. 644) Regulation .12 amended as an emergency provision effective September 14, 1999 (26:21 Md. R. 1627); emergency status expired March 11, 2000 Regulation .12 amended effective April 3, 2000 (27:6 Md. R. 644) Chapter revised effective February 4, 2002 (29:2 Md. R. 95) Chapter revised as an emergency provision effective May 30, 2003 (30:12 Md. R. 786); revised permanently effective October 13, 2003 (30:20 Md. R. 1448) Regulation .06B amended effective October 10, 2005 (32:20 Md. R. 1657) Regulation .07B, C amended effective October 10, 2005 (32:20 Md. R. 1657) Regulation .10B amended effective October 10, 2005 (32:20 Md. R. 1657) Regulation .12E amended effective October 10, 2005 (32:20 Md. R. 1657) Regulation .14H amended effective October 10, 2005 (32:20 Md. R. 1657) Chapter repealed effective May 8, 2006 (33:9 Md. R. 797) This chapter applies only to hearings arising from the cancellation, nonrenewal, reduction of coverage, or increase in premium that is not consistent with the insurer's surcharge plan under a motor vehicle liability insurance policy as provided in Insurance Article, §27-605, Annotated Code of Maryland. 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: Conduct hearings; Issue final findings of fact and conclusions of law; and Issue final orders. 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: Involves novel or unanticipated factual or legal issues; Has significant social, fiscal, or legal issues; Involves policy issues of general applicability; or Requires further investigation. Procedures for Revocation. The Commissioner shall provide written notice of a revocation of hearing authority to all parties and the Office of Administrative Hearings. The written notice shall contain a brief statement of the reason for the revocation. Delegation of authority to hear a contested case may be revoked at any time before the earlier of the: Issuance of a ruling by the administrative law judge on a substantive issue; or Taking of oral testimony from the first witness. The Commissioner shall specify whether all or part of the delegation to hear a contested case has been revoked. If only part of the delegation has been revoked, the Commissioner shall specify in the written notice of revocation the portions of the contested case for which the delegation has been revoked. Upon the revocation of the delegation, the Commissioner shall: Refer the case for further investigation; Set the case for a hearing with the Commissioner or the Commissioner's designee acting as the hearing officer; or Dismiss the case. Insurance Article, §§2-109, 2-210—2-215, and 27-605; State Government Article, Title 10, Subtitle 2; Annotated Code of Maryland Effective date: June 2, 1997 (24:11 Md. R. 793) Regulation .01 amended as an emergency provision effective October 1, 1997 (24:22 Md. R. 1550); amended permanently effective March 23, 1998 (25:6 Md. R. 487) Chapter recodified from COMAR 09.31.20 to COMAR 31.02.03 effective September 7, 1998 (25:18 Md. R. 1439) These regulations apply in any instance in which the Insurance Commissioner intends to impose a financial penalty. In determining the amount of the financial penalty to be imposed, the Commissioner shall consider the following: 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. Insurance Article, §§2-108, 2-109, and 2-201, Annotated Code of Maryland Effective date: August 24, 1987 (14:17 Md. R. 1871) Chapter recodified from COMAR 09.30.81 to COMAR 31.02.04 effective September 7, 1998 (25:18 Md. R. 1439) These regulations set out procedures for filing requests with the Maryland Insurance Administration for the inspection and copying of records under General Provisions Article, Title 4, Annotated Code of Maryland. In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means the Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland. “Administration” means the Maryland Insurance Administration. “Applicant” means a person or governmental unit that asks to inspect a public record. “Custodian” means: The official custodian; or An authorized person who has physical custody and control of a public record of the Administration. “Official custodian” means the Insurance Commissioner of the Maryland Insurance Administration. “Public record” means: The original or any copy of any documentary material that is made or received by State government in connection with the transaction of public business and is in any form, including a: Card; Computerized record; Correspondence; Drawing; Film or microfilm; Form; Map; Photograph or photostat; Recording; or Tape; or A document that lists the salary of an employee of the Administration. “Working day” means a day other than Saturday, Sunday, or State holiday. 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: The applicant’s name; The applicant’s mailing address or electronic mail address; and A brief description of the record sought. 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: The reason for the denial and, if the denial is based on General Provisions Article, §4-343, Annotated Code of Maryland, a brief explanation of why the denial is necessary; The legal authority for the denial; Without disclosing the protected information, a brief description of the denied public record that will enable the applicant to assess the applicability of the legal authority for the denial; and Notice of the remedies as stated in General Provisions Article, §§4-1A-04, 4-1B-04, and 4-362, Annotated Code of Maryland, for review of the denial. 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: The amount of time anticipated to produce the public record; An estimate of the range of fees that may be charged to produce the requested public record; and The reason for the delay. 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. If a requested public record is in the custody and control of the custodian but is not immediately available for inspection or copying, within 10 working days after mailing the notification of the grant of a written request, the custodian shall notify the applicant and set a date and hour within a reasonable time for inspection or copying, or both. If the custodian denies a written request, the applicant may file an action with the circuit court pursuant to General Provisions Article, §4-362, Annotated Code of Maryland, without exhausting the administrative remedy under State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. 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: Has entered into a contract or is employing the services of the insurance licensee who is the subject of the request; Contemplates entering into a contract or employing the services of the insurance licensee who is the subject of the request; Has filed a complaint against the individual who is the subject of the insurance licensing record and the request is limited to those documents relating to this complaint. 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: A federal, state, local, or other law enforcement agency, and has requested the inspection for law enforcement or prosecutorial purposes; or An out-of-State insurance department where the insurance licensee is licensed, has sought licensure, or is believed to be conducting an insurance business without a license. The fee schedule for copies of records is as follows: Copies. The fee for each copy is 20 cents per page if reproduction is made by a photocopying machine within the Administration. If records are not susceptible to photocopying (for example, punch cards, magnetic tape, blueprints, and microfilm), the fee for copies is based on the actual cost of reproduction. Diskettes. The fee for each reproduction made on compact disc or other type of diskette is $5. Minimum Fee Charged. Except as provided in §A(2) of this regulation, if the total amount of the fee is $5 or less, there is no charge. If the official custodian is unable to copy a record within the Administration: The official custodian shall make arrangements for the reproduction of the record at facilities outside the Administration; and The custodian shall either collect from the applicant a fee to cover the actual cost of reproduction, or direct the applicant to pay the cost of reproduction directly to the facility making the copy. 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. General Provisions Article, Title 4; Insurance Article, §§2-109 and 2-112; Annotated Code of Maryland Effective date: May 22, 1995 (22:10 Md. R. 707) Regulation .09A amended effective April 7, 1997 (24:7 Md. R. 553) Chapter recodified from COMAR 09.31.09 to COMAR 31.02.05 effective September 7, 1998 (25:18 Md. R. 1439) Regulation .01 amended as an emergency provision effective November 5, 2015 (42:24 Md. R. 1503); amended permanently effective February 1, 2016 (43:2 Md. R. 128) Regulation .02B amended as an emergency provision effective November 5, 2015 (42:24 Md. R. 1503); amended permanently effective February 1, 2016 (43:2 Md. R. 128) Regulation .03B amended as an emergency provision effective November 5, 2015 (42:24 Md. R. 1503); amended permanently effective February 1, 2016 (43:2 Md. R. 128) Regulation .04 amended as an emergency provision effective November 5, 2015 (42:24 Md. R. 1503); amended permanently effective February 1, 2016 (43:2 Md. R. 128) Regulation .06 amended as an emergency provision effective November 5, 2015 (42:24 Md. R. 1503); amended permanently effective February 1, 2016 (43:2 Md. R. 128) Regulation .08A amended as an emergency provision effective November 5, 2015 (42:24 Md. R. 1503); amended permanently effective February 1, 2016 (43:2 Md. R. 128) Regulation .09A amended effective February 12, 2007 (34:3 Md. R. 302) Regulation .09D, F amended as an emergency provision effective November 5, 2015 (42:24 Md. R. 1503); amended permanently effective February 1, 2016 (43:2 Md. R. 128) 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 procedural requirements of this chapter are in addition to the procedural requirements of any other applicable provision of law. A notice of a hearing held under this chapter shall include: The time and location of the hearing; The purpose of the hearing; and Any other information required by applicable law. The Insurance Commissioner or a designee of the Insurance Commissioner shall determine the conduct of a hearing held under this chapter, including: The order of presentation; and Time limits for questions and testimony. The Insurance Commissioner or a designee of the Insurance Commissioner may: Request the attendance of persons to testify or the production of documents; Issue a subpoena requiring the attendance of persons to testify or the production of documents; and Require testimony to be given under oath. 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: Ask questions of anyone present at a hearing; Take questions from the audience and redirect the questions to others present at the hearing; and Refer questions to employees of the Maryland Insurance Administration who may respond after the hearing. 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 Maryland Insurance Administration shall keep the tape recording or stenographic recording with the original record of the hearing; and A person who desires a copy of the transcript of the recording, if one is made, may purchase a copy from the Maryland Insurance Administration for a reasonable cost in accordance with COMAR 31.02.05.09. 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: The notice of the hearing; Exhibits and documents entered into the record; The register of all persons who attended the hearing including their names, addresses, and any affiliations relevant to the hearing; In accordance with Regulation .06 of this chapter, any: Full or partial transcript of the hearing made or purchased by the Maryland Insurance Administration; and Tape or stenographic recording of the hearing made by the Maryland Insurance Administration; and If applicable, the final decision of the Insurance Commissioner or a designee of the Insurance Commissioner. The Insurance Commissioner or a designee of the Insurance Commissioner has sole discretion to: Postpone or continue a hearing; and Keep the record open beyond the date of the hearing. Unless otherwise required by law, a party who is aggrieved by a final decision issued by the Insurance Commissioner, or a designee of the Insurance Commissioner, at the conclusion of a hearing held under this chapter, may file a petition for judicial review in the Circuit Court for Baltimore City within 30 days after the date of the final decision. Health-General Article, §19-713; Insurance Article, §§2-109, 2-203, 4-309, 11-502, 12-203, 12-204, 12-205, 13-110, 13-111, and 4-126; State Government Article, §§6.5-103 and 6.5-203; Annotated Code of Maryland Effective date: October 15, 2001 (28:20 Md. R. 1785)