MARVIN MANDEL, Governor                            2575

Article USA - Insurance Code

Section 40(1), 40(7), and 242B (2)

Annotated Code of Maryland

(1972 Replacement Volume and 1973 Supplement)

Preamble
STATEMENT OF LEGISLATIVE INTENT

WHEREAS, The Court of Appeals of Maryland, in its
opinion rendered in the consolidated cases captioned
"Insurance Commissioner of Maryland, et al. v. Allstate
Insurance Company" and "Insurance Commissioner of
Maryland v. Aetna Casualty and Surety Company", 268 Md.
428, at pages 444-45 (March 28, 1973) , has expressed its
own "grave doubts" as to whether the Insurance
Commissioner of Maryland has been given the right to
appeal from an adverse decision of the Baltimore City
Court with regard to its review of an order or decision
of the Insurance Commissioner of Maryland under the
provisions of Section 40 of Article 48A of the Annotated
Code of Maryland (1972 Replacement Volume);

WHEREAS, The Insurance Commissioner of Maryland has
been charged with the continuing general duties of
enforcing all of the provisions of Article 48A of the
Annotated Code of Maryland (1972 Replacement Volume and
1973 Cumulative Supplement), of fulfilling all of the
purposes of said Article 48A, and of effectuating all of
the provisions of said Article 48a by rules and
regulations, and hence, has an ongoing responsibility for
a coherent and responsive implementation and elaboration
of the said Article 48At all to the end that the general
welfare of the People of Maryland in the vital area of
insurance be promoted;

WHEREAS, Though the Insurance Commissioner of
Maryland, as a means to accomplish his continuing general
duties aforesaid, has been authorized and empowered,
among other things, to sit in a "quasi—judicial" capacity
and hold such hearings for any purpose within the scope
of Article 48A of the Annotated Code of Maryland (1972
Replacement Volume and 1973 Cumulative Supplement), as
may be deemed by him to be necessary, when sitting in
such capacity, the Insurance Commissioner of Maryland,
while then and there functioning as an adjudicative
authority which may decide the respective rights of
private parties, nevertheless, remains the officer of the
State of Maryland charged with the continuing general
duties aforesaid which have for their end the promotion
of the general welfare of the People of Maryland in the
vital area of insurance;