Ch. 5

LAWS OF MARYLAND

each of such three years, less all loss and loss expense payments
made in connection with such claims under policies written in the
corresponding years. But in any event in the case of the first
year of any such three-year period, such reserve shall be not
less than the present value at four percent (4%) interest of the
determined and the estimated unpaid compensation claims under
policies written during such year.

(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.

(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.

DRAFTER'S NOTE:

Error: Extraneous comma in Article 48A, § 80.

Occurred: Ch. 553, Acts of 1963.

171.

(d) The references to "state" in this section, other than
to "this [State,"] STATE", shall be deemed to include the
provinces of Canada.

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