Ch. 348

1996 LAWS OF MARYLAND

2. AN INSURER'S AUDIT PROCEDURE ESTABLISHED UNDER
TIBS PARAGRAPH SHALL BE APPROVED BY THE COMMISSIONER PRIOR TO
IMPLEMENTATION.

(6) An insurer may provide a reduction in rates based on actuarial
justification, for motor vehicle personal injury and property damage coverage, to an
insured who:

(i) Is at least 55 years of age; and

(ii) Within the last 2 years, has completed successfully a course in
accident prevention:

1. That is approved by the Motor Vehicle Administration;

2. That includes classroom instruction or practice driving of the
number of hours that the Motor Vehicle Administration requires; and

3. For which the insured has received a certificate that certifies
the completion of the course.

(F) (1) IN ADDITION TO ANY OTHER PROVISION RELATING TO RATES IN
THIS SUBTITLE, IN THE CASE OF PRIVATE PASSENGER AUTOMOBILE INSURANCE,
THE RATES OF THE INSURER MAY BE HELD TO BE EXCESSIVE BY THE
COMMISSIONER AFTER A HEARING UNLESS:

(I) ON JANUARY 1, 1997 THE STATEWIDE AVERAGE RATE FOR THE
COVERAGES PROVIDED UNDER §§ 539 AND 541 OF TIES ARTICLE, OF THE INSURER IS
NO MORE THAN 88% OF THE STATEWIDE AVERAGE RATE IN EFFECT ON JANUARY 1,

1996;.

(II) ON JANUARY 1, 1998 THE STATEWIDE AVERAGE RATE, FOR THE
COVERAGES PROVIDED UNDER §§ 539 AND 541 OF THIS ARTICLE, OF THE INSURER IS
NO MORE THAN 85% OF THE STATEWIDE AVERAGE RATE IN EFFECT ON JANUARY 1,
1996; AND

(III) ON JANUARY 1, 1999 AND EACH YEAR THEREAFTER, THE
STATEWIDE AVERAGE RATE, FOR THE COVERAGES PROVIDED UNDER §§ 539 AND 541
OF THIS ARTICLE, OF THE INSURER IS A PERCENTAGE OF THE STATEWIDE RATE IN
EFFECT ON JANUARY 1, 1996 ESTABLISHED BY THE COMMISSIONER BASED ON COST
CONTAINMENT MEASURES ENACTED, ADJUSTED UPWARD OR DOWNWARD BY
OTHER RELEVANT FACTORS, AS DETERMINED BY INDEPENDENT ACTUARIAL
ANALYSIS.

(2) THE COMMISSIONER MAY REDUCE THE PERCENTAGE THRESHOLD
IN PARAGRAPH (F)(1)(II), IF THE COMMISSIONER DETERMINES, BASED ON AN
INDEPENDENT ACTUARIAL ANALYSIS, THE PERCENTAGE IS NOT ACTUARIALLY
JUSTIFIED.

(3) IN DETERMINING WHETHER A RATE IS EXCESSIVE UNDER THIS
SUBSECTION, THE COMMISSIONER MAY TAKE INTO CONSIDERATION AMONG OTHER
RELEVANT FACTORS:

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