Marvin Mandel, Governor                         289

ings or unabsorbed premium deposits allowed or returned by insur-
ers to their policyholders; (viii) and to all other relevant factors
within and outside this State.

(2)    Rates shall not be excessive, inadequate, or unfairly dis-
criminatory.

(3)    The systems of expense provisions included in the rates for
use by any insurer or group of insurers may differ from those of
other insurers or groups of insurers to reflect the requirements of
the operating methods of any such insurer, or group with respect
to any kind of insurance, or with respect to any subdivision or com-
bination thereof for which subdivision or combination separate ex-
pense provisions are applicable.

(4)    Risks may be grouped by classifications for the establish-
ment of rates and minimum premiums. Classification rates may be
modified to produce rates for individual risks in accordance with
rating plans which establish standards for measuring variations in
hazards or expense provisions, or both. The standards may measure
any difference among risks that can be demonstrated objectively to
have a direct and substantial [probable] effect upon losses or
expenses. HOWEVER, NO RATE MAY BE BASED PARTIALLY
OR ENTIRELY ON GEOGRAPHIC AREA ITSELF, AS OP-
POSED TO UNDERLYING RISK CONSIDERATIONS, EVEN
THOUGH EXPRESSED IN GEOGRAPHIC TERMS.

(5)    Uniformity among insurers in any matters within the scope
of this subsection is neither required or prohibited.

(6)    Unless the filer demonstrates that the proposed rate is not
excessive or inadequate or unfairly discriminatory, the Commissioner
may disapprove the filing.

(7)    No insurer under an automobile liability insurance policy
shall classify or maintain an insured in a classification entailing a
higher premium because of the insured's claim experience for a
period longer than three years after the filing of the last claim by
or against the insured, and no such insurer shall classify or main-
tain an insured in a classification entailing a higher premium be-
cause of the insured's driving record for a period longer than three
years after the obtaining of the last point or points by the insured
under Part IV of Subtitle 6 of Article 66½ of the Annotated Code
of Maryland.

242.

(c-1) The Commissioner is empowered at any time to require
any automobile liability insurance rating organization and any in-
surer writing automobile liability insurance in this State to demon-
strate to him that its rates and methods of setting rates for auto-
mobile liability insurance are in compliance with subsection (c)
hereof, notwithstanding that the rates then in effect had previously
been approved by the Commissioner. If,, after a hearing held upon not
less than ten days' written notice to the rating organization or in-
surer, the Commissioner finds that the rates or any part thereof, or
the method of setting the rates on any part thereof, are not in com-
pliance with subsection (c) hereof, he may pass such order or orders
as he deems appropriate to (i) require that the rates or parts thereof,
or the method of setting the rates or any part thereof, be so ad-
justed as to comply with subsection (c), and (ii) require any such