PARRIS N. GLENDENING, Governor                                   Ch. 11

13-110. FILING AND APPROVAL OF FORMS AND RATES.

(A)     REQUIRED.

EACH FORM FOR A POLICY, CERTIFICATE OF INSURANCE, NOTICE OF
PROPOSED INSURANCE, APPLICATION FOR INSURANCE, ENDORSEMENT, OR RIDER
DELIVERED OR ISSUED FOR DELIVERY IN THE STATE AND EACH RELATED
SCHEDULE OF PREMIUM RATES SHALL BE FILED WITH THE COMMISSIONER FOR
APPROVAL.

(B)     DISAPPROVAL OF FORMS OR RATES.

(1)      WITHIN 60 DAYS AFTER A FORM OR PREMIUM RATE DESCRIBED IN
SUBSECTION (A) OF THIS SECTION IS FILED, THE COMMISSIONER SHALL DISAPPROVE
THE FILING IF:

(I)       THE TABLE OF PREMIUM RATES APPEARS BY REASONABLE
ASSUMPTIONS TO BE EXCESSIVE IN RELATION TO BENEFITS; OR

(II)     THE FORM CONTAINS PROVISIONS THAT:

1.        ARE UNJUST, UNFAIR, INEQUITABLE, MISLEADING, OR
DECEPTIVE;

2.        ENCOURAGE MISREPRESENTATION OF THE COVERAGE;
OR

3.        ARE CONTRARY TO A PROVISION OF THIS ARTICLE OR A
REGULATION ADOPTED UNDER THIS ARTICLE.

(2)      IN MAKING A DETERMINATION UNDER PARAGRAPH (1) OF THIS
SUBSECTION, THE COMMISSIONER SHALL CONSIDER:

(I)       PAST AND PROSPECTIVE LOSS EXPERIENCE WITHIN AND
OUTSIDE THE STATE;

(II)     UNDERWRITING PRACTICE AND JUDGMENT TO THE EXTENT
APPROPRIATE;

(III)    A REASONABLE MARGIN FOR UNDERWRITING PROFIT AND
CONTINGENCIES;

(IV)    PAST AND PROSPECTIVE EXPENSES, WHETHER COUNTRYWIDE
OR SPECIALLY APPLICABLE TO THE STATE; AND

(V)     ALL OTHER RELEVANT FACTORS WITHIN AND OUTSIDE THE
STATE.

(3)      IF THE COMMISSIONER DISAPPROVES A FORM OR PREMIUM RATE,
THE COMMISSIONER SHALL:

(I) NOTIFY THE INSURER OF THE DISAPPROVAL AND SPECIFY IN
THE NOTICE THE REASON FOR DISAPPROVAL; AND

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