<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".10" citation="COMAR 31.02.01.10" title_num="31" subtitle_num="02" chapter_num="01" heading="Default Orders.">
  <paragraph num="A.">
    <text>This regulation does not apply to unauthorized insurers.</text>
  </paragraph>
  <paragraph num="B.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>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;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>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</text>
    </paragraph>
    <paragraph num="(3)">
      <text>In any other contested case hearing, the party failing to appear is the person that requested the hearing.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>In a hearing arising out of a charging document, order, or notice issued by the Administration, the default order shall:</text>
    <paragraph num="(1)">
      <text>State the facts supporting the finding of proper notice to the person against whom the charging document, order, or notice was issued;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>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</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Adopt the sanction requested by the Administration at the hearing.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>In a hearing arising out of a determination, including a determination involving an administrative complaint, the hearing officer shall:</text>
    <paragraph num="(1)">
      <text>If the nondefaulting party is requesting that the determination be upheld, issue a default order that:</text>
      <paragraph num="(a)">
        <text>States the facts supporting the finding of proper notice to the party failing to appear; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Upholds the determination; or</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>If the nondefaulting party is requesting that the determination be reversed or modified:</text>
      <paragraph num="(a)">
        <text>Allow the party to present its case as to why the determination should be reversed or modified; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Issue a default order that:</text>
        <paragraph num="(i)">
          <text>States the facts supporting the finding of proper notice to the party failing to appear;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Makes any appropriate findings of fact or law; and</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Orders relief as appropriate under the relevant provisions of the Health-General Article or Insurance Article, Annotated Code of Maryland.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>In a hearing on a proposed examination report, the default order shall:</text>
    <paragraph num="(1)">
      <text>State the facts supporting the finding of proper notice to the person that was examined;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>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</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Adopt the sanctions included with the proposed examination report.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>The hearing officer shall serve the default order directly on the parties by certified mail.</text>
  </paragraph>
  <paragraph num="G.">
    <text>Within 15 days after service of a default order, the party in default may submit to the hearing officer a written motion:</text>
    <paragraph num="(1)">
      <text>Requesting that the default order be vacated or modified; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Stating the grounds for the request.</text>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>If the hearing officer finds that there is:</text>
    <paragraph num="(1)">
      <text>Good cause to excuse the default, the hearing officer may:</text>
      <paragraph num="(a)">
        <text>Vacate or modify the default order, and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Schedule the case for further appropriate proceedings; or</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Not good cause to excuse the default, the Commissioner shall:</text>
      <paragraph num="(a)">
        <text>Deny the motion, and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Affirm the default order as the final order.</text>
      </paragraph>
    </paragraph>
  </paragraph>
</regulation>