Ch. 11

1996 LAWS OF MARYLAND

INSURANCE MAY NOT EXCEED THE AGGREGATE OF THE PREMIUMS TO BE
CHARGED BY THE INSURER, AS COMPUTED AT THE TIME THE CHARGE TO THE
DEBTOR IS DETERMINED.

(D)     LOSS RATIO FOR CASE.

(1)      WITHIN 120 DAYS AFTER THE EXPIRATION OF AN EXPERIENCE
PERIOD ESTABLISHED FOR A CASE, THE INSURER SHALL FILE WITH THE
COMMISSIONER AN APPROPRIATE EXPERIENCE REPORT THAT IS SIGNED BY THE
ACTUARY OF THE INSURER CERTIFYING THE LOSS RATIO FOR THE CASE.

(2)      IF THE LOSS RATIO CERTIFIED FOR A CASE UNDER PARAGRAPH (1)
OF THIS SUBSECTION SATISFIES THE LOSS RATIO GUIDELINE ADOPTED BY THE
COMMISSIONER, THE INSURER MAY CONTINUE TO CHARGE THE EXISTING
PREMIUM RATE.

(3)      IF THE LOSS RATIO CERTIFIED FOR A CASE UNDER PARAGRAPH (1)
OF THIS SUBSECTION IS LESS THAN THE LOSS RATIO GUIDELINE, THE INSURER
SHALL:

(I)       REDUCE THE PREMIUM RATE APPROPRIATELY WITH AN
EFFECTIVE DATE WITHIN 45 DAYS AFTER THE EXPERIENCE REPORT WAS FILED
UNDER PARAGRAPH (1) OF THIS SUBSECTION; OR

(II)     SHOW CAUSE TO THE COMMISSIONER WHY THE PREMIUM
RATE SHOULD NOT BE REDUCED.

(4)      (I) IF THE LOSS RATIO CERTIFIED FOR A CASE UNDER
PARAGRAPH (1) OF THIS SUBSECTION IS LESS THAN THE LOSS RATIO GUIDELINE,
AND THE INSURER REFUSES TO REDUCE THE PREMIUM RATE, THEN AFTER NOTICE
AND AN OPPORTUNITY FOR A HEARING, AND WITHIN 60 DAYS AFTER THE INSURER
FILED THE EXPERIENCE REPORT, THE COMMISSIONER SHALL NOTIFY THE INSURER
IN WRITING OF THE PREMIUM RATE AUTHORIZED FOR USE WITH THE CASE.

(II) THE INSURER SHALL IMPLEMENT THE PREMIUM RATE
AUTHORIZED BY THE COMMISSIONER NOT LATER THAN 45 DAYS AFTER RECEIPT OF
THE NOTICE FROM THE COMMISSIONER.

(E)     PRIMA FACIE RATES.

(1) EVERY 2 YEARS THE COMMISSIONER SHALL ADOPT A PRIMA FACIE
ACCEPTABLE PREMIUM RATE APPLICABLE TO EACH SPECIFIC PLAN OF BENEFITS
FOR EACH CLASS OF BUSINESS FOR:

(I)       A NEW CASE;

(II)     A CASE THAT DOES NOT SATISFY THE EXPERIENCE PERIOD
REQUIREMENT; AND

(III)   ANY BUSINESS THAT IS NOT A CASE BECAUSE PREMIUMS DO
NOT EXCEED $50,000 IN A POLICY YEAR.

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