Ch. 41

LAWS OF MARYLAND

WHICH THE RESERVE IS STATED AT A RATE NOT TO EXCEED 4 PERCENT PER
ANNUM.

(III) 1. FOR PURPOSES OF THIS PARAGRAPH, THE
COMMISSIONER MAY REQUIRE AN INSURER TO FILE QUARTERLY FINANCIAL
REPORTS RELATING TO ASSETS, LIABILITIES, AND SURPLUS.

2. SUBPARAGRAPH (I) OF THIS SUBSECTION
MAY NOT APPLY TO POLICIES WRITTEN BY AN INSURER IF THAT INSURER
FAILS TO FILE, IN A TIMELY MANNER, ANY FINANCIAL REPORTS REQUIRED
BY THIS SUBPARAGRAPH.

(IV) THE RESERVE COMPUTED IN ACCORDANCE WITH
THIS PARAGRAPH MAY NOT BE LESS THAN THE RESERVE REQUIRED BY
PARAGRAPH (2) OF THIS SECTION.

(5) (I) WITH THE APPROVAL OF THE INSURANCE
COMMISSIONER, FOR ALL HEALTH CARE PROFESSIONAL LIABILITY CLAIMS,
THE RESERVE MAY NOT BE LESS THAN THE PRESENT VALUE AT 4 PERCENT
INTEREST OF THE DETERMINED OR ESTIMATED FUTURE PAYMENTS, OR BOTH;
BUT IN ANY EVENT, THE RESERVE MAY NOT BE LESS THAN THE RESERVE
REQUIRED BY PARAGRAPH (2) OF THIS SECTION.

(II) IF A HEALTH CARE PROFESSIONAL LIABILITY
INSURER RESERVES ITS HEALTH CARE PROFESSIONAL LIABILITY CLAIMS AT
LESS THAN THE FULL AMOUNT OF THE DETERMINED OR ESTIMATED FUTURE
PAYMENT OF THOSE CLAIMS, OR BOTH, THEN THE INSURER SHALL FILE
INTERIM STATEMENTS WITH THE COMMISSIONER AS PROVIDED UNDER §
58(2) OF THIS ARTICLE.

(III) THE BENEFIT TO ANY MEDICAL MALPRACTICE
INSURER RESULTING FROM ANY DISCOUNT OF RESERVES UNDER THIS
PARAGRAPH SHALL INURE TO THE POLICYHOLDERS OF THAT INSURER IN THE
FORM OF A REDUCTION IN PREMIUM CONSISTENT WITH THE AMOUNT OF THE
DISCOUNT.

(IV) THE INSURANCE COMMISSIONER SHALL REPORT TO
THE LEGISLATIVE POLICY COMMITTEE ON OR BEFORE OCTOBER 1 OF EACH
YEAR CONCERNING THE EFFECT THAT ANY DISCOUNT OF RESERVES HAS HAD
ON THE REDUCTION OF PREMIUMS REFERRED TO IN THIS PARAGRAPH. THE
FIRST REPORT SHALL BE SUBMITTED BY OCTOBER 1, 1989.

[(5)] (6) The Commissioner may, in his discretion,
waive the provisions of this section with respect to combination
or multiple peril policies where the predominating exposure to
loss is on types of insurance other than liability, unless such
policies include motor vehicle liability or workmen's
compensation insurance.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988.

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