PARRIS N. GLENDENING, Governor                              Ch. 685

(C) A COURT MAY AWARD REIMBURSEMENT OF A SERVICE OF PROCESS FEE
IMPOSED UNDER SUBSECTION (D)(4) OF THIS SECTION TO A PREVAILING PLAINTIFF
IN ANY PROCEEDING AGAINST AN INSURER OR SURPLUS LINES BROKER.

10-118.

(a) (1) When an insurer doing business in the State makes or terminates an
appointment, the insurer immediately shall[:

(i)] file with the Commissioner written notice of the appointment of
termination and the reasons for the termination [; and

(ii) pay to the Commissioner the applicable fee required by § 2-112 of
this article].

(2) A disclosure to the Commissioner relative to the termination and date
and cause of the termination is a privileged communication and may not be used as
evidence in a court proceeding other than an appeal from an action of the Commissioner.
(3) The appointment and appointment fee provisions of this subsection do
not apply to agents with an appointment from an insurer on June 30, 1985.

SECTION 4. AND BE IT FURTHER ENACTED, That:

(a) There is an Advisory Committee to Study Funding Mechanisms for the Maryland
Insurance Administration.

(b) The Advisory Committee shall:

(1)     examine alternative mechanisms for funding the Maryland Insurance
Administration:

(2)    develop a proposal which:

(i) apportions the cost of regulation fairly and equitably among the
regulated entities;

(ii) takes into account the economic impact of the mechanism;

(iii) reduces the current cost of imposing and collecting fees; and

(iv) takes into account possible retaliatory actions by other states.

(c) The Advisory Committee shall be composed of the following 13 members:

(1)     two members of the Senate Finance Committee;

(2)     two members of the House Economic Matters Committee;

(3)     the Insurance Commissioner;

(4)     one representative of life and health insurers;

(5)     one representative of property and casualty insurers;

(6)     one representative of health maintenance organizations;

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