1314

LAWS OF MARYLAND

Ch. 464

(2) STANDARDS FOR MAXIMUM AMOUNTS OF DIVIDENDS,
RETROSPECTIVE RATE CREDITS, AND ANY OTHER FORM OF REFUND OR
BENEFIT TO POLICYHOLDERS.

436-I.

(F) GENERAL PREMIUM BATE STANDARDS; MANDATORY RATE
REVISION; PROMULGATION OF PRIMA FACIE ACCEPTABLE RATES BY
COMMISSIONER.

(1)   PREMIUM BATES PROVIDED BY POLICIES OF CREDIT
INSURANCE ARE PRESUMED TO BE REASONABLE IN RELATION TO

BENEFITS IF THEY ARE IN ACCORDANCE WITH SECTION 436H(B), IF

THE LOSS RATIO FOR ANY CASE DURING AN EXPERIENCE PERIOD

EQUALS OR EXCEEDS 50 PERCENT.

(2)   WITHIN 60 120 DAYS AFTER THE EXPIRATION OF
THE EXPERIENCE PERIOD FOR ANY CASE ESTABLISHED PURSUANT TO
SECTION 436C(8), THE INSURER SHALL FILE WITH THE
COMMISSIONER AN APPROPRIATE EXPERIENCE REPORT SIGNED BY ITS
ACTUARY WHICH CERTIFIES THE LOSS RATIO FOR THE CASE. IF THE
LOSS RATIO CERTIFIED FOR THE CASE SATISFIES THE LOSS RATIO
GUIDELINE---PROVIDED---ABOVE--PROMULGATED BY THE COMMISSION-
COMMISSIONER, THE INSURER MAY CONTINUE TO CHARGE THE
EXISTING PREMIUM RATES.

(3)   IF THE LOSS RATIO FOR ANY CASE IS LESS THAN
THE LOSS RATIO GUIDELINE, THE INSURES SHALL MAKE APPROPRIATE
RATE SEDUCTIONS, WHICH SHALL BE EFFECTIVE ON OR BEFORE 45
DAYS AFTER THE EXPERIENCE REPORT HAS BEEN FILED, OR SHOW
CAUSE TO THE COMMISSIONER WHY ITS RATES FOR THE CASE SHOULD
NOT BE SEDUCED. IF THE LOSS RATIO FOR ANY CASE IS LESS THAN
THAT REQUIRED ABOVE AND THE INSURES REFUSES TO REDUCE ITS
RATES, THE COMMISSIONER, AFTER NOTICE AND HEARING AND WITHIN
60 DAYS AFTER THE FILING OF THE EXPERIENCE REPORT, SHALL
NOTIFY THE INSURER IN WRITING AS TO THE RATES WHICH ARE
AUTHORIZED FOR USE WITH THE CASE. THESE RATES SHALL BE
IMPLEMENTED BY THE INSURER NO LATER THAN 45 DAYS AFTER
RECEIPT OF THE COMMISSIONER'S NOTICE.

(4) IF THE LOSS RATIO FOR ANY CASE DURING AN

EXPERIENCE PERIOD EQUALS OR EXCEEDS 55 PERCENT, THE INSURER

MAY INCREASE THE PREMIUM RATES TO A LEVEL WHICH WOULD,

ASSUMING THE LOSS EXPERIENCE DURING THE NEW EXPERIENCE

PERIOD WILL BE THE SAME AS THAT FOR THE IMMEDIATELY

PRECEDING EXPERIENCE PERIOD, PRODUCE A LOSS RATIO OF 50

PERCENT.

(5) (4) FOR NEW CASES OR CASES WHICH DO NOT
SATISFY THE EXPERIENCE PERIOD REQUIREMENT CONTAINED IN
SECTION 436C(9), AND FOR BUSINESS WHICH DOES NOT MEET THE
DEFINITION OF A CASE BY REASON OF BEING LESS THAN THE
$50,000 MINIMUM THRESHOLD, THE COMMISSIONER, ON A BIENNIAL
BASIS AND AFTER NOTICE AND HEAPING, SHALL PROMULGATE PRIMA
FACI ACCEPTABLE RATES APPLICABLE TO SPECIFIED PLANS OF
BENEFITS FOR EACH CLASS OF BUSINESS. PRIMA FACIE RATES