Ch. 35

1997 LAWS OF MARYLAND

(D) MINIMUM ACCEPTABLE LOSS RATIOS.

THE MINIMUM ACCEPTABLE LOSS RATIOS FOR MEDICARE SUPPLEMENT
POLICIES ARE:

(1) FOR GROUP MEDICARE SUPPLEMENT POLICIES, AT LEAST 75% OF
THE AGGREGATE AMOUNT OF PREMIUMS EARNED; AND

(2) FOR INDIVIDUAL MEDICARE SUPPLEMENT POLICIES OR
SUBSCRIBER CONTRACTS THAT ARE ISSUED OR RENEWED ON A POLICY
ANNIVERSARY AFTER JULY 1, 1991, AT LEAST 65% OF THE AGGREGATE AMOUNT OF
PREMIUMS EARNED.

(E) COMPLIANCE WITH LOSS RATIO STANDARDS REQUIRED.

(1) TO DEMONSTRATE COMPLIANCE WITH THE APPLICABLE MINIMUM
LOSS RATIO STANDARDS ESTABLISHED IN THE STATE FOR MEDICARE SUPPLEMENT
POLICIES, EACH CARRIER THAT PROVIDES MEDICARE SUPPLEMENT POLICIES OR
CERTIFICATES IN THE STATE SHALL FILE ANNUALLY WITH THE COMMISSIONER THE
CARRIER'S RATES, RATING SCHEDULE, AND SUPPORTING DOCUMENTATION.

(2) EACH FILING OF RATES AND RATING SCHEDULES SHALL
DEMONSTRATE THAT THE ACTUAL AND EXPECTED LOSSES IN RELATION TO
PREMIUMS COMPLY WITH THE REQUIREMENTS OF THIS SUBTITLE.

(F) STANDARDS NOT MET.

THE COMMISSIONER MAY REQUIRE A CARRIER TO ADJUST RATES OR GIVE
CREDITS OR REFUNDS TO POLICYHOLDERS OF MEDICARE SUPPLEMENT POLICIES
THAT IN PRACTICE DO NOT MEET THE MINIMUM LOSS RATIO STANDARDS
REQUIRED UNDER THIS SECTION.

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

In subsection (e)(1) of this section, the defined term "carrier" is substituted
for the former reference to an "entity" for clarity and consistency throughout
this subtitle.

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

15-912. SPECIFIC STANDARDS FOR POLICY PROVISIONS.
(A) REGULATIONS REQUIRED.

THE COMMISSIONER SHALL ADOPT REASONABLE REGULATIONS TO ESTABLISH
SPECIFIC STANDARDS FOR POLICY PROVISIONS OF MEDICARE SUPPLEMENT
POLICIES AND CERTIFICATES.

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