3428

LAWS OF MARYLAND

Ch. 737

(B)  IN DETERMINING WHETHER RATES COMPLY WITH STANDARDS
UNDER SUBSECTION (A) OF THIS SECTION, DUE CONSIDERATION SHALL BE
GIVEN TO:

(1)  PAST AND PROSPECTIVE LOSS EXPERIENCE WITHIN AND
OUTSIDE THIS STATE;

(2)  CONFLAGRATION OR CATASTROPHE HAZARDS;

(3)  A REASONABLE MARGIN FOR UNDERWRITING PROFIT AND
CONTINGENCIES;

(4)  DIVIDENDS, SAVINGS, OR UNABSORBED PREMIUM
DEPOSITS ALLOWED OR RETURNED BY INSURERS TO THEIR POLICYHOLDERS
OR MEMBERS OR SUBSCRIBERS;

(5)  PAST AND PROSPECTIVE EXPENSES, BOTH COUNTRYWIDE
AND THOSE SPECIALLY APPLICABLE TO THIS STATE;

(6)  INVESTMENT INCOME EARNED OR REALIZED BY INSURERS
BOTH FROM THEIR UNEARNED PREMIUM AND FROM THEIR LOSS RESERVE
FUNDS; AND

(7)  ALL RELEVANT FACTORS WITHIN AND OUTSIDE THIS
STATE.

(C)  AS TO THE KINDS OF INSURANCE TO WHICH THIS SUBTITLE
APPLIES:

(1)  THE SYSTEMS OF EXPENSE PROVISIONS INCLUDED IN THE
RATES FOR USE BY AN INSURER OR GROUP OF INSURERS MAY DIFFER FROM
THOSE OF ANY OTHER INSURERS OR GROUPS OF INSURERS TO REFLECT THE
REQUIREMENTS OF THE OPERATING METHODS OF THE INSURER OR GROUP OF
INSURERS WITH RESPECT TO ANY KIND OF INSURANCE, OR WITH RESPECT
TO ANY SUBDIVISION OR COMBINATION OF INSURANCE FOR WHICH SEPARATE
EXPENSE PROVISIONS ARE APPLICABLE; AND

(2) (I) RISKS MAY BE GROUPED BY CLASSIFICATIONS FOR
THE ESTABLISHMENT OF RATES AND MINIMUM PREMIUMS.

(II)  CLASSIFICATION RATES MAY BE MODIFIED TO
PRODUCE RATES FOR INDIVIDUAL RISKS IN ACCORDANCE WITH RATING
PLANS WHICH ESTABLISH STANDARDS FOR MEASURING VARIATIONS IN
HAZARDS OR EXPENSE PROVISIONS, OR BOTH.

(III)  THE STANDARDS MAY MEASURE ANY DIFFERENCE
AMONG RISKS THAT HAVE HAD A DIRECT AND SUBSTANTIAL EFFECT UPON
LOSSES OR EXPENSES.

(IV)  NOTWITHSTANDING ANY OTHER PROVISION OF
THIS PARAGRAPH, NO RATE MAY BE BASED PARTIALLY OR ENTIRELY ON
GEOGRAPHIC AREA ITSELF, AS OPPOSED TO UNDERLYING RISK
CONSIDERATIONS, EVEN THOUGH EXPRESSED IN GEOGRAPHIC TERMS.