Chapter 03. Review of Automobile Rating Territories
Regulation .01 Purpose.LinkCopy Citation
The purpose of this chapter is to ensure that all insurers that use territory as a factor in establishing automobile insurance rates in the State, including the Maryland Automobile Insurance Fund, file statements with the Commissioner that satisfy the requirements of Insurance Article, §§11-216 and 11-319, Annotated Code of Maryland.
Regulation .02 Triannual Review of Territories.LinkCopy Citation
Each insurer that uses territory as a factor in establishing automobile insurance rates in the State, including the Maryland Automobile Insurance Fund, shall conduct a review of its territories every 3 years.
Regulation .03 Filing Requirements.LinkCopy Citation
A.
Each insurer that uses territory as a factor in establishing automobile insurance rates in the State, including the Maryland Automobile Insurance Fund, shall file with the Commissioner a certification statement.
B.
The certification statement shall be on the form adopted by the Commissioner in Regulation .04 of this chapter.
C.
The certification statement shall be filed:
(1)
On or before June 1, 2007;
(2)
Upon completion of each review required by the Commissioner pursuant to Regulation .02 of this chapter; and
(3)
Contemporaneously with each rate filing that indicates a modification of territorial rating factors.
Regulation .04 Certification Statement for Automobile Insurers.LinkCopy Citation
A.
Certification Statement for Insurers and Rating Organizations.
1.
The use of territories as a factor in rating by the above-named (insurer or rating organization) has been reviewed within the previous 3 years; and
2.
Use of the territories on file, or as set forth in this filing, are actuarially justified. I understand that the Maryland Insurance Administration will rely on this certification, and if it is determined that this certification is materially false or incorrect, the insurer may be subject to administrative action, including appropriate penalties.
B.
Certification Statement for Insurers Adopting the Certification Statement of a Rating Organization.
1.
_____________(insurer) is a member of or subscriber to _________________ (rating organization), a licensed rating organization, and has authorized the Commissioner to accept filings from ______________ (rating organization) on its behalf or has filed to adopt _______________ (rating organization's) filings.
2.
________________(insurer) has filed no deviations relating to territory from the automobile rate filings submitted by ____________(rating organization).
3.
_____________ (rating organization) has filed with the Commissioner the certification statement required by Insurance Article, §11-216 or 11-319, Annotated Code of Maryland, and COMAR 31.07.03.03.
4.
____________________(insurer) hereby adopts the statements made in the certification statement.
Regulation .05 Filings Made By Rating Organizations.LinkCopy Citation
A.
A licensed rating organization that files on behalf of its members or subscribers automobile insurance rates that use territory as a factor in establishing automobile insurance rates in the State shall comply with the provisions of Regulations .02—.04 of this chapter.
B.
An insurer that is required to file a certification statement may utilize the certification statement in Regulation .04B of this chapter if:
(1)
The insurer is a member or subscriber of a licensed rating organization which has been authorized to make filings on the insurer's behalf or the insurer has filed to adopt the rating organization's filing; and
(2)
The insurer has not filed with the Commissioner a deviation from the rates, loss costs, or both, filed by the rating organization relating to the use of territories.
Chapter annotations
Authority: Insurance Article, §§2-109, 11-216, 11-319, and 11-339, Annotated Code of Maryland
History: Effective date: January 15, 2007 (34:1 Md. R. 33)