Ch. 35

1997 LAWS OF MARYLAND

"Premium" § 1-101
"Qualified agent" § 1-101
"Surety insurance" § 1-101

27-603. CANCELLATION OR NONRENEWAL OF LINE OF BUSINESS.

(A) FILING OF PLAN OF WITHDRAWAL REQUIRED.

(1) EXCEPT FOR LIFE INSURANCE, HEALTH INSURANCE, AND
ANNUITIES, AN INSURER THAT INTENDS TO CANCEL OR NOT RENEW A LINE OF
BUSINESS SHALL FILE A PLAN OF WITHDRAWAL WITH THE COMMISSIONER AT LEAST
180 DAYS BEFORE THE DATE OF THE PROPOSED WITHDRAWAL.

(2) NOTWITHSTANDING PARAGRAPH (1) OF THIS SUBSECTION, THE
COMMISSIONER MAY ALLOW AN INSURER TO FILE A PLAN OF WITHDRAWAL AT
LEAST 60 DAYS BEFORE THE DATE OF PROPOSED WITHDRAWAL IF THE
COMMISSIONER DETERMINES THAT COMPLIANCE BY THE INSURER WITH
PARAGRAPH (1) OF THIS SUBSECTION MAY RESULT IN:

(I) THE IMPAIRMENT OF THE INSURER;

(II) THE LOSS OF OR SUBSTANTIAL CHANGES IN APPLICABLE
REINSURANCE; OR

(III) SIGNIFICANT FINANCIAL LOSSES TO THE INSURER.

(3) FOR HEALTH INSURANCE:

(I) AN INSURER THAT INTENDS TO CANCEL OR NOT RENEW A
HEALTH INSURANCE PRODUCT, AS DEFINED BY THE COMMISSIONER, FOR ALL OF
ITS COVERED INSUREDS IN THE STATE SHALL FILE A PLAN OF WITHDRAWAL WITH
THE COMMISSIONER AT LEAST 90 DAYS BEFORE THE DATE OF THE PROPOSED
CANCELLATION OR NONRENEWAL; AND

(II) AN INSURER THAT INTENDS TO WITHDRAW COMPLETELY
FROM THE HEALTH INSURANCE MARKET IN THE STATE BY CANCELING OR NOT
RENEWING ALL OF ITS HEALTH INSURANCE PRODUCTS IN THE STATE SHALL FILE A
PLAN OF WITHDRAWAL WITH THE COMMISSIONER AT LEAST 180 DAYS BEFORE THE
DATE OF THE PROPOSED WITHDRAWAL.

(B) CONTENTS OF PLAN OF WITHDRAWAL.

THE PLAN OF WITHDRAWAL SHALL CONTAIN:

(1) A STATEMENT BY AN ELECTED OFFICER OF THE INSURER THAT THE
CANCELLATION OR NONRENEWAL ACTION IS NECESSARY AS A RESULT OF:

(I) THE LOSS OF OR SUBSTANTIAL CHANGES IN APPLICABLE

REINSURANCE;

(II) FINANCIAL LOSSES OF THE INSURER; OR

(III) ANOTHER BUSINESS OR ECONOMIC REASON OF THE INSURER;

- 1244 -