PARRIS N. GLENDENING, Governor

Ch. 35

15-910. RETURN OF POLICY; REFUND.

(A) IN GENERAL.

EACH MEDICARE SUPPLEMENT POLICY OR CERTIFICATE SHALL HAVE
PROMINENTLY PRINTED ON THE FIRST PAGE OF THE POLICY OR CERTIFICATE OR
ATTACHED TO IT, A NOTICE THAT STATES THAT THE APPLICANT MAY:

(1) RETURN THE MEDICARE SUPPLEMENT POLICY OR CERTIFICATE
WITHIN 30 DAYS AFTER ITS DELIVERY; AND

(2) RECEIVE A REFUND OF THE PREMIUM IF AFTER EXAMINATION OF
THE MEDICARE SUPPLEMENT POLICY OR CERTIFICATE, THE APPLICANT IS NOT
SATISFIED FOR ANY REASON.

(B) PAYMENT OF REFUND.

THE CARRIER SHALL PAY A REFUND MADE UNDER THIS SECTION DIRECTLY
TO THE APPLICANT IN A TIMELY MANNER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 468CB.

Defined terms: "Applicant" § 15-901
"Carrier" § 15-901
"Certificate" § 15-901
"Medicare supplement policy" § 15-901
"Premium" § 1-101

15-911. MINIMUM LOSS RATIO STANDARDS FOR POLICIES.

(A) "LOSS RATIO" DEFINED.

IN THIS SECTION, "LOSS RATIO" MEANS THE RATIO OF LOSSES INCURRED TO
PREMIUMS EARNED ON POLICIES THAT ARE ISSUED, DELIVERED, OR RENEWED IN
THE STATE.

(B) BENEFITS REASONABLE IN RELATION TO PREMIUMS.

MEDICARE SUPPLEMENT POLICIES SHALL RETURN AGGREGATE BENEFITS
THAT ARE REASONABLE IN RELATION TO THE PREMIUM CHARGED.

(C) REGULATIONS REQUIRED.

(1) FOR PURPOSES OF ADMINISTERING THIS SUBTITLE AND §§ 12-203
THROUGH 12-205 OF THIS ARTICLE, THE COMMISSIONER SHALL ADOPT REASONABLE
REGULATIONS TO ESTABLISH MINIMUM STANDARDS FOR LOSS RATIOS OF
MEDICARE SUPPLEMENT POLICIES.

(2) THE MINIMUM STANDARDS FOR LOSS RATIOS SHALL BE BASED ON
INCURRED CLAIMS EXPERIENCE AND EARNED PREMIUMS IN ACCORDANCE WITH
ACCEPTED ACTUARIAL PRINCIPLES AND PRACTICES AND THE PRINCIPLES AND
STANDARDS OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.

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