PARRIS N. GLENDENING, Governor

Ch. 475

(4) HAS DEMONSTRATED A PATTERN OR PRACTICE OF FAILING TO
DETECT OR DISCLOSE MATERIAL INFORMATION IN ANY AUDITED FINANCIAL
REPORTS PREVIOUSLY SUBMITTED BY THAT INDIVIDUAL.

(E) (1) SUBJECT TO §§ 35 THROUGH 40 OF THIS ARTICLE, THE
COMMISSIONER MAY HOLD A HEARING TO DETERMINE WHETHER A CERTIFIED
PUBLIC ACCOUNTANT IS QUALIFIED.

(2)     AFTER CONSIDERING THE EVIDENCE PRESENTED AT THE HEARING,
THE COMMISSIONER SHALL RULE ON WHETHER THE ACCOUNTANT IS QUALIFIED
FOR PURPOSES OF EXPRESSING AN OPINION ON THE FINANCIAL STATEMENTS IN
THE AUDITED FINANCIAL REPORT REQUIRED UNDER § 58 OF THIS SUBTITLE.

(3)     IF THE COMMISSIONER FINDS THAT THE ACCOUNTANT IS NOT
QUALIFIED, THE COMMISSIONER SHALL REQUIRE THE INSURER TO REPLACE THE
ACCOUNTANT WITH ANOTHER WHO IS QUALIFIED AS PROVIDED UNDER THIS
SECTION.

80.

Where required in the form of annual statement required of the insurer, the reserve
for outstanding losses under insurance against loss or damage from accident to or injuries
suffered by an employee or other person and for which the insured is liable shall be
computed as follows:

[(1) For all liability suits being defended under policies written more than:

(i) Ten (10) years prior to the date as of which the statement is made,
$1,500 for each suit.

(ii) Five (5) or more and less than ten (10) years prior to the date as of
which the statement is made, $1,000 for each suit.

(iii) Three (3) or more and less than five (5) years prior to the date as
of which the statement is made, $850 for each suit.]

[(2)](1) For all liability policies written during the three (3) years
immediately preceding the date as of which the statement is made, the reserve shall be
sixty percent (60%) of the earned liability premiums of each of such three (3) years less
all losses and expense payment made under liability policies written in the corresponding
years[; but in any event, such reserve shall for the first of such three (3) years be not less
than $750 for each outstanding liability suit on such year's policies].

[(3)](2) For all workers' compensation claims under policies written more
than 3 years prior to the date as of which the statement is made, the reserve shall be the
present value at 4% interest of the determined and the estimated future payments.

[(4)](3) For all workers' compensation claims under policies written in the
3 years immediately preceding the date as of which the statement is made, such reserve
shall be 65% of the earned compensation premiums of each of such 3 years, less all loss
and loss expense payments made in connection with such claims under policies written in

- 2695 -