Ch. 348

1996 LAWS OF MARYLAND

(iv) The order of suspension will cause no substantial harm to the
public.

(2) In the event the Commissioner suspends a rate under this subsection,
the Commissioner must, unless waived by the insurer, hold a hearing within 15 working
days after issuing the order suspending the rate. In addition, the Commissioner must
make a determination and issue the order as to whether or not the rate should be
disapproved within 15 working days after the close of the hearing.

(c) (1) At any hearing to determine compliance with § 244D(a)(2) of this subtitle
pursuant to subsection (a) of this section, the Commissioner shall first determine whether
a reasonable degree of competition exists within a market, and shall give a ruling to that
effect. All insurers operating within such market shall have the burden of establishing
that a reasonable degree of competition exists within that market. The Commissioner
shall consider all relevant factors in determining the competitiveness of a market,
including:

(i) The number of insurers actively engaged in providing coverage in
the market;

(ii) Market shares;

(iii) Changes in market shares; and

(iv) Ease of entry.

(2)     (i) If the Commissioner determines that a reasonable degree of
competition does not exist in a market, any insurer designated by the Commissioner shall
have the burden of justifying its rate in such market.

(ii) The Commissioner may require that an insurer file supporting data
as provided under § 244K(b) of this subtitle.

(3)     All determinations made by the Commissioner shall be on the basis of
findings of fact and conclusions of law.

(4)     If the Commissioner disapproves a rate, the disapproval shall take effect
not less than 15 days after its order and the last previous rate in effect for the insurer shall
be reimposed for a period of 1 year unless the Commissioner approves a rate under
subsection (d) or subsection (e) of this section.

(d) Within 1 year after the effective date of a disapproval order no rate adopted to
replace one disapproved under such order may be used until it has been filed with the
Commissioner and not disapproved within 30 days thereafter.

(e) Whenever an insurer has no legally effective rates as a result of the
Commissioner's disapproval of rates or other act, the Commissioner shall, on the insurer's
request, specify interim rates for the insurer that are high enough to protect the interests
of all parties and may order that a specified portion of the premiums be placed in a
special reserve established by the insurer. When new rates become legally effective, the

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