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Ch. 580
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2006 LAWS OF MARYLAND
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[27-603.] 27-606.
(a) (1) Except for life insurance, health insurance, and annuities, an insurer
that intends to cancel or not renew a line of business shall file a plan of withdrawal
with the Commissioner at least 180 days before the date of the proposed withdrawal.
(2) Notwithstanding paragraph (1) of this subsection, the Commissioner
may allow an insurer to file a plan of withdrawal at least 60 days before the date of
proposed withdrawal if the Commissioner determines that compliance by the insurer
with paragraph (1) of this subsection may result in:
(i) the impairment of the insurer;
(ii) the loss of or substantial changes in applicable reinsurance; or
(iii) significant financial losses to the insurer.
(3) For health insurance:
(i) an insurer that intends to cancel or not renew a health
insurance product, as defined by the Commissioner, for all of its covered insureds in
the State shall file a plan of withdrawal with the Commissioner at least 90 days
before the date of the proposed cancellation or nonrenewal; and
(ii) an insurer that intends to withdraw completely from the health
insurance market in the State by canceling or not renewing all of its health insurance
products in the State shall file a plan of withdrawal with the Commissioner at least
180 days before the date of the proposed withdrawal.
(b) The plan of withdrawal shall contain:
(1) a statement by an elected officer of the insurer that the cancellation
or nonrenewal action is necessary as a result of:
(i) the loss of or substantial changes in applicable reinsurance;
(ii) financial losses of the insurer; or
(iii) another business or economic reason of the insurer;
(2) if the reason for cancellation or nonrenewal is loss of or substantial
changes in reinsurance, a statement that explains:
(i) that the insurer made a good faith effort to obtain replacement
reinsurance, but was unable to do so due to either the unavailability or
unaffordability of replacement reinsurance;
(ii) how the loss of or reduction in reinsurance affects the insurer's
risks throughout the entire line or category of insurance proposed for cancellation or
nonrenewal; and
(iii) why cancellation or nonrenewal is necessary to cure the loss of
or reduction in available reinsurance; and
- 2764 -
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