PARRIS N. GLENDENING, Governor

Ch. 11

INTERFERE WITH THE COMMISSIONER IN THE CONDUCT OF A DELINQUENCY
PROCEEDING OR IN AN INVESTIGATION PRELIMINARY OR INCIDENTAL TO A
DELINQUENCY PROCEEDING, OR VIOLATE AN ORDER OF THE COMMISSIONER
ISSUED UNDER THIS SUBTITLE.

(E) PENALTIES.

(1)     A PERSON THAT VIOLATES SUBSECTION (D) OF THIS SECTION IS
GUILTY OF A MISDEMEANOR AND ON CONVICTION IS SUBJECT TO A FINE NOT
EXCEEDING $10,000 OR IMPRISONMENT NOT EXCEEDING 1 YEAR OR BOTH.

(2)     AFTER A HEARING BEFORE THE COMMISSIONER, A PERSON THAT
VIOLATES SUBSECTION (D) OF THIS SECTION IS SUBJECT TO A CIVIL PENALTY NOT
EXCEEDING $10,000 AND TO THE REVOCATION OR SUSPENSION OF ANY INSURANCE
LICENSE ISSUED BY THE COMMISSIONER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 135A.

In subsection (d) of this section, the former reference to a "validly" issued
order is deleted as implicit.

In subsection (e)(1) of this section, the phrase "guilty of a misdemeanor" is
added to state expressly that which was only implied by the references, in
former Art. 48A, § 135A(d)(1), to a "sentence[d]", "fine", and
"imprisonment". Since violation of former § 135A(d)(1) was not a felony at
common law and has not been declared a felony by statute, it is considered to
be a misdemeanor. See State v. Canova. 278 Md. 483, 490 (1976), and Dutton
v. State, 123 Md. 373, 378 (1914).

Also in subsection (e)(1) of this section, the phrase "on conviction" is
standard language added to reflect a legal requirement that is prerequisite to
the imposition of the criminal penalty.

In subsection (e)(2) of this section, the reference to a hearing "before the
Commissioner" is added to clarify that the hearing involved is an
administrative hearing.

Defined terms: "Commissioner" § 1-101
"Control" § 1-101
"Delinquency proceeding" § 9-201
"Insurer" § 1-101
"Person" § 1-101

9-231. NOTICE OF IMPAIRMENT REQUIRED; CONTRIBUTING TO IMPAIRMENT
PROHIBITED; PENALTIES.

(A) "CHIEF EXECUTIVE OFFICER" DEFINED.

IN THIS SECTION, "CHIEF EXECUTIVE OFFICER" MEANS A PERSON CHARGED BY
THE BOARD OF DIRECTORS OR TRUSTEES OF AN INSURER TO ADMINISTER AND
IMPLEMENT POLICIES AND PROCEDURES OF THE INSURER.

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