<?xml version='1.0' encoding='utf-8'?>
<chapter num="03" heading="Review of Automobile Rating Territories" title_num="31" subtitle_num="07">
  <regulation prefix="Regulation" num=".01" heading="Purpose.">
    <text>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.</text>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Triannual Review of Territories.">
    <text>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.</text>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Filing Requirements.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>The certification statement shall be on the form adopted by the Commissioner in Regulation .04 of this chapter.</text>
    </paragraph>
    <paragraph num="C.">
      <text>The certification statement shall be filed:</text>
      <paragraph num="(1)">
        <text>On or before June 1, 2007;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Upon completion of each review required by the Commissioner pursuant to Regulation .02 of this chapter; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Contemporaneously with each rate filing that indicates a modification of territorial rating factors.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Certification Statement for Automobile Insurers.">
    <paragraph num="A.">
      <text>Certification Statement for Insurers and Rating Organizations.</text>
      <paragraph num="1.">
        <text>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</text>
      </paragraph>
      <paragraph num="2.">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Certification Statement for Insurers Adopting the Certification Statement of a Rating Organization.</text>
      <paragraph num="1.">
        <text>_____________(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.</text>
      </paragraph>
      <paragraph num="2.">
        <text>________________(insurer) has filed no deviations relating to territory from the automobile rate filings submitted by ____________(rating organization).</text>
      </paragraph>
      <paragraph num="3.">
        <text>_____________ (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.</text>
      </paragraph>
      <paragraph num="4.">
        <text>____________________(insurer) hereby adopts the statements made in the certification statement.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Filings Made By Rating Organizations.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>An insurer that is required to file a certification statement may utilize the certification statement in Regulation .04B of this chapter if:</text>
      <paragraph num="(1)">
        <text>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</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">Insurance Article, §§2-109, 11-216, 11-319, and 11-339, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: January 15, 2007 (34:1 Md. R. 33)</annotation>
  </annotations>
</chapter>