J. MILLARD TAWES, Governor                     1103

tension thereof which the Commissioner may grant. The Commis-
sioner shall not suspend the license of any rating organization or
insurer for failure to comply with an order until the time pre-
scribed for an appeal therefrom has expired or if an appeal has been
taken, until such order has been affirmed. The Commissioner may-
determine when a suspension of license shall become effective and it
shall remain in effect for the period fixed by him, unless he modifies
or rescinds such suspension, or until the order upon which such
suspension is based is modified, rescinded or reversed.

No penalty shall be imposed and no license shall be suspended or
revoked except upon a written order of the Commissioner, stating
his findings, made after a hearing held upon not less than ten days'
written notice to such person or organization specifying the alleged
violation.

243. Casualty and Surety Rating.

(a)   Scope of section.

This section applies to all types of insurers.

This section applies to casualty and surety insurance, including
fidelity, surety and guaranty bonds, and to all other forms of motor
vehicle insurance, on risks, or operations in this State, except:

(1)   Reinsurance, other than joint reinsurance to the extent stated
in subsection (j); and

(2)   Insurance against loss of or damage to aircraft or against
liability, other than workmen's compensation and employers' liability,
arising out of the ownership, maintenance or use of aircraft;

(3)   Title insurance;

This section shall not apply to the Maryland "State Accident
Fund."

If any kind of insurance, subdivision or combination thereof, or
type of coverage, subject to this section, is also subject to regulation
by another rate regulatory act of this State, an insurer to which both
sections are otherwise applicable shall file with the Insurance Com-
missioner hereinafter referred to as Commissioner, a designation as
to which rate regulatory section shall be applicable to it with respect
to such kind of insurance, subdivision or combination thereof, or
type of coverage.

(b)   Making of rates.

(1) All rates shall be made in accordance with the following
provisions:

(i) Due consideration shall be given to past and prospective loss
experience within and outside this State, to catastrophe hazards, if
any, to a reasonable margin for underwriting profit and contingencies,
to dividends, savings or unabsorbed premium deposits allowed or
returned by insurers to their policyholders, members or subscribers,
to past and prospective expenses both country-wide and those spe-
cially applicable to this State, and to all other relevant factors within
and outside this State;

(ii) The systems of expense provisions included in the rates for
use by any insurer or group of insurers may differ from those of other