Ch. 475

1995 LAWS OF MARYLAND

(2) (I) TITLE 2 OF THE BUSINESS OCCUPATIONS AND. PROFESSIONS
ARTICLE; AND

(3) (II) THE REGULATIONS AND RULES OF PROFESSIONAL CONDUCT
ESTABLISHED BY THE MARYLAND STATE BOARD OF PUBLIC ACCOUNTANCY.

(C)     (1) (I) A PERSON PARTNER IN AN ACCOUNTING FIRM RESPONSIBLE
FOR PREPARING AN AUDITED FINANCIAL REPORT UNDER § 58 OF THIS SUBTITLE
FOR AN INSURER MAY NOT ACT IN THAT CAPACITY FOR MORE THAN 7
CONSECUTIVE YEARS FOR THE SAME INSURER.

(II) IF A PERSON PARTNER IN AN ACCOUNTING FIRM RESPONSIBLE
FOR PREPARING AN AUDITED FINANCIAL REPORT UNDER § 58 OF THIS SUBTITLE
FOR AN INSURER EXCEEDS 7 CONSECUTIVE YEARS IN THAT CAPACITY, THE PERSON
PARTNER SHALL BE DISQUALIFIED FROM ACTING IN THE SAME OR A SIMILAR
CAPACITY FOR THAT INSURER OR ITS INSURANCE SUBSIDIARIES OR AFFILIATES
FOR A PERIOD OF NOT LESS THAN 2 YEARS.

(2) (I) AN INSURER MAY APPLY TO THE COMMISSIONER FOR AN
EXCEPTION FROM THE PROHIBITION OF PARAGRAPH (1) OF THIS SUBSECTION ON
THE BASIS OF UNUSUAL CIRCUMSTANCES.

(II) IN DETERMINING WHETHER UNUSUAL CIRCUMSTANCES EXIST
THAT WOULD JUSTIFY THE GRANTING OF AN EXCEPTION, THE COMMISSIONER MAY
CONSIDER:

1.       THE NUMBER OF PARTNERS IN THE ACCOUNTING FIRM
CURRENTLY USED BY THE INSURER, THE EXPERTISE OF THE PARTNERS IN THAT
FIRM, AND THE NUMBER OF INSURANCE CLIENTS OF THAT FIRM;

2.       THE PREMIUM VOLUME OF THE INSURER; AND

3.       THE NUMBER OF JURISDICTIONS IN WHICH THE INSURER
TRANSACTS BUSINESS.

(D)    THE COMMISSIONER MAY NOT RECOGNIZE AS A QUALIFIED
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT, OR ACCEPT ANY AUDITED
FINANCIAL REPORT PREPARED IN WHOLE OR IN PART BY, ANY INDIVIDUAL WHO:

(1)     HAS BEEN CONVICTED OF FRAUD, BRIBERY, A VIOLATION OF THE
RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT, 18 U.S.C. §§ 1961-1968,
OR ANY DISHONEST CONDUCT OR PRACTICES UNDER FEDERAL OR STATE LAW;

(2)     HAS VIOLATED THE INSURANCE LAWS OF THIS STATE WITH
RESPECT TO ANY AUDITED FINANCIAL REPORTS PREVIOUSLY SUBMITTED BY THAT
INDIVIDUAL;

(3)     HAS VIOLATED ANY PROVISION OF TITLE 2 OF THE BUSINESS
OCCUPATIONS AND PROFESSIONS ARTICLE OR ANY REGULATION OR RULE OF
PROFESSIONAL CONDUCT ESTABLISHED BY THE STATE BOARD OF PUBLIC
ACCOUNTANCY; OR

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