Ch. 785                           MARVIN MANDEL, Governor                                1639

CHAPTER 785
(House Bill 534)

AN ACT to add new [[Section 215 (A-1) to Article 48A of the Annotated Code of
Maryland (1971 Replacement Volume), title "Insurance Code," subtitle "Unfair
Trade Practices," to follow immediately after Section 215(A) thereof, to provide
for an exception to the cease and desist procedure set forth in Section 215(A).

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

MARYLAND, That new Section 215(a-1) be and it is hereby added to Article
48A of the Annotated Code of Maryland (1972 Replacement Volume), title
"Insurance Code," subtitle "Unfair Trade Practices," to follow immediately after
Section 215(a) thereof, and to read as follows:

215.

(A-1) WHENEVER IT SHALL APPEAR TO THE SATISFACTION OF
THE COMMISSIONER THAT AN INSURED IS ENGAGED IN ANY ACT
OR TRANSACTION, OR IN GENERALLY CONDUCTING ITS BUSINESS
AND AFFAIRS IN SUCH A MANNER AS TO THREATEN TO RENDER
IT INSOLVENT OR SUBJECT IT TO CONSERVATION OR
LIQUIDATION PROCEEDINGS OF ANY NATURE, OR WHICH IS
OTHERWISE HAZARDOUS TO ITS POLICYHOLDERS, CREDITORS,
STOCKHOLDERS OR THE GENERAL PUBLIC, THEN THE
COMMISSIONER MAY, WITHOUT NOTICE AND PRIOR TO ANY
HEARING, SERVE UPON THE INSURER AN ORDER REQUIRING IT
TO CEASE AND DESIST FROM ENGAGING FURTHER IN THE
WRITING OF INSURANCE IN THE STATE, PROVIDED THAT, IN
ADDITION TO ANY OTHER FINDINGS REQUIRED HEREIN, THE
COMMISSIONER SHALL ALSO FIND THAT UNLESS HE ACTS
IMMEDIATELY, IRREPARABLE HARM SHALL OCCUR TO ANY
PERSON AND PROVIDED ALSO THAT NOTICE OF A HEARING TO BE
HELD NOT LESS THAN TWENTY (20) NOR MORE THAN THIRTY (30)
DAYS AFTER THE DATE OF THE ORDER BE SERVED AT THE TIME
THE ORDER IS SERVED.]] Subsection 55(3) to Article 48A of the Annotated
Code of Maryland (1972 Replacement Volume), title "Insurance Code," subtitle
"Insurers: Authorization and General Requirements," to follow immediately after
Subsection 55(2)(ix), to provide that the Commissioner may act immediately and
before a. hearing in the issuance of a. cease and desist order whenever it appears
that an insurer is conducting its business and affairs in such a. manner as to
threaten to render it insolvent or is conducting its business and affairs in a. manner
which is hazardous to its policyholders, creditors or to the public or is engaged in
any act, practice, or transactions which would constitute ground rendering the
insurer subject to conservation or liquidation proceedings.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND. THAT A NEW SUBSECTION 55(3) BE AND IS HEREBY
ADDED TO ARTICLE 48A OF THE ANNOTATED CODE OF MARYLAND
(1972 REPLACEMENT VOLUME), TITLE, "INSURANCE CODE,"
SUBTITLE "INSURERS: AUTHORIZATION AND GENERAL
REQUIREMENTS," TO FOLLOW IMMEDIATELY AFTER SUBSECTION
55(2) (ix), AND TO READ AS FOLLOWS: