Ch. 747

LAWS OF MARYLAND

(iii) Explaining why cancellation or nonrenewal
is necessary to cure the loss of or reduction in available
reinsurance.

(4) Notwithstanding the reason for cancellation or
nonrenewal, the plan of withdrawal shall also contain a
statement:

(i) Identifying category of risk, the total
number of risks written by the insurer in that line of business,
and the number of risks intended to be cancelled or not renewed;

(ii) Explaining how the cancellation or
nonrenewals, if approved, will be implemented with respect to
individual risks and the steps that will be taken to ensure that
the cancellation or nonrenewal decisions will not be applied in
an arbitrary, capricious or unfairly discriminatory manner or in
violation of § 234A of this article; and

(iii) Including any other information the
Commissioner reasonably requires.

(5)  The Commissioner shall review the plan of
withdrawal to determine its compliance with § 234A of this
article.

(6)  If a plan is not accompanied by the information
required by this subsection, the Commissioner may so inform the
insurer, and the plan shall be deemed filed when the information
is furnished to the Commissioner.

240AA.

(b) An insurer intending to take an action subject to the
provisions of this section shall, on or before 45 days prior to
the proposed effective date of the action, send written notice of
its intended action to the insured at his last known address. A
written notice of cancellation or nonrenewal shall be sent by
certified mail. All other notices of action subject to the
provisions of this section shall be sent by certificate of
mailing. The notice shall be in triplicate, and shall state in
clear and specific terms, on a form approved by the Commissioner:

(1) The proposed action to be taken, including, if
the action is an increase in premium or reduction in coverage,
the amount of increase and the type of coverage to which it is
applicable, or the type of coverage reduced and the extent of the
reduction;

(2) The proposed effective date of the action;

(3) The insurer's actual reason or reasons for
proposing to take such action. The statement of reason shall be

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