HARRY HUGHES, Governor                                     3425

[(c-1) The Commissioner is empowered at any time to require
any automobile liability insurance rating organization and any
insurer writing automobile liability insurance in this State to
demonstrate to him that its rates and methods of setting rates
for automobile liability insurance are in compliance with
subsection (c) hereof, notwithstanding that the rates then in
effect had previously been approved by the Commissioner. If,
after a hearing held upon not less than ten days' written notice
to the rating organization or insurer, the Commissioner finds
that the rates or any part thereof, or the method of setting the
rates on any part thereof, are not in compliance with subsection
(c) hereof, he may pass such order or orders as he deems
appropriate to (i) require that the rates or parts thereof, or
the method of setting the rates or any part thereof, be so
adjusted as to comply with subsection (c) and (ii) require any
such insurer whose rates or part thereof are found to be in
violation of subsection (c) to reimburse any insured who, during
the period of time such rates were in effect, not exceeding one
year, paid a higher premium than the Commissioner finds should
have been charged had the rates been in compliance with
subsection (c), an amount equal to the difference between the
premium paid and the premium which the Commissioner finds should
have been charged during such period; provided, however, that no
order of reimbursement shall be made prior to one year after
January 1, 1973.]

16B. REGULATION OF COMPETITIVE RATING

244.

(A)  THIS SUBTITLE SHALL BE LIBERALLY CONSTRUED TO ACHIEVE
THE PURPOSES STATED IN SUBSECTION (B) OF THIS SECTION, WHICH
SHALL CONSTITUTE AN AID AND GUIDE TO INTERPRETATION BUT NOT AN
INDEPENDENT SOURCE OF POWER.

(B)  THE PURPOSES OF THIS SUBTITLE ARE:

(1)  TO PROTECT POLICYHOLDERS AND THE PUBLIC AGAINST
THE ADVERSE EFFECT OF EXCESSIVE, INADEQUATE, OR UNFAIRLY
DISCRIMINATORY RATES;

(2)  TO ENCOURAGE, AS THE MOST EFFECTIVE WAY TO
PRODUCE RATES THAT CONFORM TO THE STANDARDS OF PARAGRAPH (1) OF
THIS SUBSECTION, INDEPENDENT ACTION BY AND REASONABLE PRICE
COMPETITION AMONG INSURERS;

(3)  TO PROVIDE FORMAL REGULATORY CONTROLS FOR USE IF
PRICE COMPETITION FAILS;

(4)  TO AUTHORIZE COOPERATIVE ACTION AMONG INSURERS IN
THE RATE-MAKING PROCESS, AND TO REGULATE SUCH COOPERATION IN
ORDER TO PREVENT PRACTICES THAT TEND TO BRING ABOUT MONOPOLY OR
TO LESSEN OR DESTROY COMPETITION; AND