PARRIS N. GLENDENING, Governor

Ch. 475

(3)      HAS VIOLATED ANY PROVISION OF TITLE 2 OF THE BUSINESS
OCCUPATIONS AND PROFESSIONS ARTICLE OR ANY REGULATION OR RULE OF
PROFESSIONAL CONDUCT ESTABLISHED BY THE STATE BOARD OF PUBLIC
ACCOUNTANCY; OR

(4)      HAS DEMONSTRATED A PATTERN OR PRACTICE OF FAILING TO
DETECT OR DISCLOSE MATERIAL INFORMATION IN ANY AUDITED FINANCIAL
REPORTS PREVIOUSLY SUBMITTED BY THAT INDIVIDUAL.

(E) (1) SUBJECT TO §§ 2-210 THROUGH 2-215 OF THIS ARTICLE, THE
COMMISSIONER MAY HOLD A HEARING TO DETERMINE WHETHER A CERTIFIED
PUBLIC ACCOUNTANT IS QUALIFIED.

(2)      AFTER CONSIDERING THE EVIDENCE PRESENTED AT THE HEARING,
THE COMMISSIONER SHALL RULE ON WHETHER THE ACCOUNTANT IS QUALIFIED
FOR PURPOSES OF EXPRESSING AN OPINION ON THE FINANCIAL STATEMENTS IN
THE AUDITED FINANCIAL REPORT REQUIRED UNDER § 4-116 OF THIS SUBTITLE.

(3)      IF THE COMMISSIONER FINDS THAT THE ACCOUNTANT IS NOT
QUALIFIED, THE COMMISSIONER SHALL REQUIRE THE INSURER TO REPLACE THE
ACCOUNTANT WITH ANOTHER WHO IS QUALIFIED AS PROVIDED UNDER THIS
SECTION.

5-204.

(a) The reserves against loss or damage from accident to or injuries suffered by an
employee or other person that must be included in an insurer's annual statement required
under this article shall be computed in accordance with this section.

[(b) The reserves for each liability suit being defended shall be:

(1)     $1,500, if the suit is brought under a policy made more than 10 years
before the date of the annual statement;

(2)     $1,000, if the suit is brought under a policy made at least 5 but less than
10 years before the date of the annual statement; and

(3)     $850, if the suit is brought under a policy made at least 3 but less than 5
years before the date of the annual statement.]

[(c) (1)] (B) For all liability policies written during the 3 years immediately
preceding the date of the annual statement, the reserves shall be 60% of the earned
liability premiums of each of the 3 years, less all losses and expense payments made under
liability policies written in the corresponding years.

[(2) For the first year of the 3-year period, the reserves may not be less than
$750 for each outstanding liability suit on that year's policies.]

[(d)](C) (1) For all workers' compensation claims under policies written more
than 3 years before the date of the annual statement, the reserves shall be the present
value at 4% interest of the determined and the estimated future payments.

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