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ROBERT L. EHRLICH, JR., Governor Ch. 350
(4) THE COMMISSIONER MAY NOT DISMISS A PROTEST SOLELY BECAUSE
OF THE INSURED'S FAILURE TO STATE A REASON THAT THE INSURED BELIEVES THE
PREMIUM INCREASE IS INCORRECT.
(F) (1) IF THE COMMISSIONER DISALLOWS A PREMIUM INCREASE FOR THE
ENTIRE POLICY, THE INSURER, WITHIN 30 DAYS AFTER THE DISALLOWANCE, SHALL:
(I) RETURN TO THE INSURED ALL DISALLOWED PREMIUM
RECEIVED FROM THE INSURED; AND
(II) PAY TO THE INSURED INTEREST ON THE DISALLOWED
PREMIUM RECEIVED FROM THE INSURED CALCULATED AT 10% A YEAR FROM THE
DATE THE DISALLOWED PREMIUM WAS RECEIVED TO THE DATE THE DISALLOWED
PREMIUM WAS RETURNED.
(2) IF AN INSURER FAILS TO RETURN ANY DISALLOWED PREMIUM AND
INTEREST TO THE INSURED AS PROVIDED IN PARAGRAPH (1) OF THIS SUBSECTION
WITHIN 30 DAYS AFTER THE COMMISSIONER DISALLOWS THE ACTION OF THE
INSURER THE INSURER SHALL PAY INTEREST ON THE DISALLOWED PREMIUM
CALCULATED AT 20% A YEAR BEGINNING ON THE 31ST DAY FOLLOWING THE
DISALLOWANCE TO THE DATE THE DISALLOWED PREMIUM IS RETURNED.
(2) (3) IF AN INSURER FAILS TO RETURN ANY DISALLOWED PREMIUM
OR FAILS TO PAY INTEREST TO AN INSURED IN VIOLATION OF PARAGRAPH (1)
PARAGRAPHS (1) AND (2) OF THIS SUBSECTION, THE INSURER IS SUBJECT TO THE
PENALTIES UNDER § 4-113(D) OF THIS ARTICLE.
(G) A PARTY TO A PROCEEDING UNDER THIS SECTION MAY APPEAL THE
DECISION OF THE COMMISSIONER IN ACCORDANCE WITH § 2-215 OF THIS ARTICLE.
SECTION 2. AND BE IT FURTHER ENACTED, That:
(a) The Maryland Insurance Administration may establish a pilot program for
the purpose of reducing the number of protests filed under this Act.
(b) Participation by insurers and insureds in the pilot program shall be
voluntary.
(c) The pilot program may require participating insurers to provide certain
information and assistance to consumers who request information about premium
increases.
(d) On or before January 1, 2008, the Maryland Insurance Administration
shall report to the Senate Finance Committee and the House Economic Matters
Committee, in accordance with § 2-1246 of the State Government Article, on the
implementation and results of the pilot program.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act applies to all
private passenger motor vehicle liability binders and policies issued or renewed on or
after the effective date of this Act.
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect
January 1, 2007.
- 1849 -
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