Ch. 36

1995 LAWS OF MARYLAND

"Insurance business" § 1-101

"Insurance contract" § 1-101

"Insurer" § 1-101                              

"Person" § 1-101

"Policy" § 1-101

"Premium" § 1-101

"Reinsurance" § 1-101

"State" § 1-101

4-114. CEASE AND DESIST ORDERS.

(A)     IN GENERAL.

WITHOUT NOTICE AND BEFORE HEARING, THE COMMISSIONER MAY ISSUE
AND HAVE SERVED ON AN INSURER AN ORDER REQUIRING THE INSURER
IMMEDIATELY TO CEASE AND DESIST FROM WRITING INSURANCE IN THE STATE IF
IT APPEARS TO THE COMMISSIONER THAT:

(1)      THE INSURER IS:

(I)       CONDUCTING ITS BUSINESS AND AFFAIRS IN A MANNER THAT
THREATENS TO MAKE IT INSOLVENT OR THAT IS HAZARDOUS TO ITS
POLICYHOLDERS, CREDITORS, OR THE GENERAL PUBLIC; OR

(II)     ENGAGED IN AN ACT, PRACTICE, OR TRANSACTION THAT
CONSTITUTES GROUNDS MAKING THE INSURER SUBJECT TO CONSERVATION OR
LIQUIDATION PROCEEDINGS; AND

(2)      IRREPARABLE LOSS AND INJURY TO THE PROPERTY AND BUSINESS
OF THE INSURER OR THE GENERAL PUBLIC HAS OCCURRED OR MAY OCCUR UNLESS
THE COMMISSIONER ACTS IMMEDIATELY.

(B)      NOTICE AND HEARING.

(1)      WHEN AN ORDER IS SERVED ON AN INSURER UNDER SUBSECTION
(A) OF THIS SECTION, THE COMMISSIONER SHALL ISSUE AND ALSO SERVE ON THE
INSURER NOTICE OF A HEARING TO BE HELD AT A PLACE AND TIME NOT LATER
THAN 5 DAYS AFTER THE DATE OF THE ORDER.

(2)      IF THE INSURER WAIVES THE RIGHT TO A HEARING WITHIN 5 DAYS
AFTER THE DATE OF THE ORDER/THE HEARING SHALL BE HELD WITHIN 30 DAYS
AFTER SERVICE OF THE ORDER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 55(3).

Defined terms: "Commissioner" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101

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