Ch. 352                                    1995 LAWS OF MARYLAND

(11) SURETY INSURANCE.

244D.

The following standards apply to the making and use of rates pertaining to all
classes of insurance to which this subtitle is applicable:

(a) (1) Rates may not be;

(i) Excessive or inadequate, as defined under this subtitle; or

(i) Excessive or inadequate, as defined under this subtitle; or

(I) AS DEFINED UNDER THIS SUBTITLE, EXCESSIVE OR
IN ADEQUATE, IN ALL TERRITORIES OF AN INSURER, AS THE TERRITORIES ARE
DETERMINED BY THE INSURER; OR

(ii) Unfairly discriminatory.

(2)      [A] EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION,
A rate may not be held to be excessive unless:

(i) The rate is unreasonably high for the insurance provided; and

(ii) The Commissioner has issued a ruling under § 244-I(c) of this
subtitle that a reasonable degree of competition does not exist in a market to which the
rate is applicable.

(3)     A rate may not be held to be inadequate unless:

(i) It is unreasonably low for the insurance provided and continued
use of it would endanger solvency of the insurer; or

(ii) The rate is unreasonably low for the insurance provided and the
use of the rate by the insurer has had or, if continued, will have the effect of destroying
competition or of creating monopoly.

(4)     IN THE CASE OF PRIVATE PASSENGER MOTOR VEHICLE INSURANCE,
THE COMMISSIONER MAY HOLD A RATE TO BE EXCESSIVE UNDER § 244 I OF THIS
SUBTITLE WITHOUT DETERMINING WHETHER A REASONABLE DEGREE OF
COMPETITION EXISTS UNDER § 244D(C) § 244-I(C) OF THIS SUBTITLE IF THE

(4)_ IN THE CASE OF PERSONAL LINES PROPERTY AND CASUALTY
INSURANCE, A STATEWIDE RATE OR A RATE IN A PARTICULAR JURISDICTION OR
GEOGRAPHIC TERRITORY MAY BE HELD BY THE COMMISSIONER TO BE EXCESSIVE
WITHOUT DETERMINING WHETHER A REASONABLE DEGREE OF COMPETITION EXISTS
UNDER § 244-I(C)(1) AND (2) OF THIS SUBTITLE IF THE COMMISSIONER DETERMINES
THAT THE RATE IS:

(I)      UNREASONABLY HIGH FOR THE INSURANCE PROVIDED; AND

(II)    IS NOT ACTUARIALLY JUSTIFIED BASED ON COMMONLY
ACCEPTED ACTUARIAL PRINCIPLES.

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