Ch. 36                                          1995 LAWS OF MARYLAND

Defined terms: "Certificate of authority" § 1-101
"Commissioner" § 1-101
"Domestic insurer" § 1-101
"Foreign insurer" § 1-101
"Premium" § 1-101

4-113. DENIALS, REFUSALS TO RENEW, SUSPENSIONS, AND REVOCATIONS.

(A)     MANDATORY GROUNDS.

THE COMMISSIONER SHALL DENY A CERTIFICATE OF AUTHORITY TO AN
APPLICANT OR REFUSE TO RENEW, SUSPEND, OR REVOKE A CERTIFICATE OF
AUTHORITY IF:

(1)      THE ACTION IS REQUIRED BY ANY PROVISION OF THIS ARTICLE;

(2)      THE INSURER NO LONGER MEETS THE REQUIREMENTS FOR THE
CERTIFICATE OF AUTHORITY BECAUSE OF A DEFICIENCY IN ASSETS OR ANY OTHER
REASON;

(3)      THE BUSINESS OF THE INSURER IS FRAUDULENTLY CONDUCTED;

(4)      THE INSURER IS INSOLVENT, OR ITS ASSETS ARE NOT SUFFICIENT
FOR CARRYING ON ITS BUSINESS;

(5)      THE INSURER FAILS TO PAY TAXES ON PREMIUMS REQUIRED
UNDER THIS ARTICLE;

(6)      THE INSURER WILLFULLY FAILS TO PROVIDE THE COMMISSIONER
WITH REQUIRED INFORMATION ABOUT MEDICAL MALPRACTICE INSURANCE
ISSUED BY THE INSURER IN THIS STATE OR ANY OTHER STATE;

(7)      THE ISSUANCE OR RENEWAL OF A CERTIFICATE OF AUTHORITY IS
CONTRARY TO THE PUBLIC INTEREST;

(8)      THE COMMISSIONER FINDS THAT THE PRINCIPAL MANAGEMENT
PERSONNEL OF THE INSURER IS:

(I)       UNTRUSTWORTHY OR NOT OF GOOD CHARACTER; OR

(II)     SO LACKING IN INSURER MANAGERIAL EXPERIENCE AS TO
MAKE THE PROPOSED OPERATION HAZARDOUS TO THE INSURANCE-BUYING
PUBLIC OR TO THE INSURER'S STOCKHOLDERS; OR

(9)      THE COMMISSIONER HAS GOOD REASON TO BELIEVE THAT THE
INSURER IS AFFILIATED, DIRECTLY OR INDIRECTLY, THROUGH OWNERSHIP,
CONTROL, MANAGEMENT, REINSURANCE TRANSACTIONS, OR OTHER INSURANCE
OR BUSINESS RELATIONS WITH A PERSON WHOSE BUSINESS OPERATIONS ARE OR
HAVE BEEN MARKED BY THE MANIPULATION OF ASSETS, ACCOUNTS, OR
REINSURANCE OR BY BAD FAITH, TO THE DETRIMENT OF INSUREDS,
STOCKHOLDERS, OR CREDITORS.

(B)      DISCRETIONARY GROUNDS.

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