PARRIS N. GLENDENING, Governor

Ch. 35

(2) IF THE REASON FOR CANCELLATION OR NONRENEWAL IS LOSS OF
OR SUBSTANTIAL CHANGES IN REINSURANCE, A STATEMENT THAT EXPLAINS:

(I) THAT THE INSURER MADE A GOOD FAITH EFFORT TO OBTAIN
REPLACEMENT REINSURANCE, BUT WAS UNABLE TO DO SO DUE TO EITHER THE
UNAVAILABILITY OR UNAFFORDABILITY OF REPLACEMENT REINSURANCE;

(II) HOW THE LOSS OF OR REDUCTION IN REINSURANCE AFFECTS
THE INSURER'S RISKS THROUGHOUT THE ENTIRE LINE OR CATEGORY OF
INSURANCE PROPOSED FOR CANCELLATION OR NONRENEWAL; AND

(III) WHY CANCELLATION OR NONRENEWAL IS NECESSARY TO
CURE THE LOSS OF OR REDUCTION IN AVAILABLE REINSURANCE; AND

(3) NOTWITHSTANDING THE REASON FOR CANCELLATION OR
NONRENEWAL, A STATEMENT THAT:

(I) IDENTIFIES THE CATEGORY OF RISK, THE TOTAL NUMBER OF
RISKS WRITTEN BY THE INSURER IN THAT LINE OF BUSINESS, AND THE NUMBER OF
RISKS INTENDED TO BE CANCELED OR NOT RENEWED;

(II) EXPLAINS HOW THE CANCELLATION OR NONRENEWALS, IF
APPROVED, WILL BE IMPLEMENTED WITH RESPECT TO INDIVIDUAL RISKS AND THE
STEPS THAT WILL BE TAKEN TO ENSURE THAT THE CANCELLATION OR
NONRENEWAL DECISIONS WILL NOT BE APPLIED IN AN ARBITRARY, CAPRICIOUS,
OR UNFAIRLY DISCRIMINATORY MANNER OR IN VIOLATION OF § 27-501 OF THIS
TITLE; AND

(III) INCLUDES ANY OTHER INFORMATION THAT THE
COMMISSIONER REASONABLY REQUIRES.

(C) PLAN FILED WITHOUT REQUIRED INFORMATION.

IF A PLAN OF WITHDRAWAL FILED WITH THE COMMISSIONER IS NOT
ACCOMPANIED BY THE INFORMATION REQUIRED BY THIS SECTION, THE
COMMISSIONER MAY SO INFORM THE INSURER AND THE PLAN OF WITHDRAWAL
WILL BE DEEMED FILED WHEN THE INFORMATION IS PROVIDED TO THE
COMMISSIONER.

(D) NOTICE TO AGENTS.

AFTER AN INSURER HAS FILED A PLAN OF WITHDRAWAL WITH THE
COMMISSIONER, THE INSURER SHALL NOTIFY IN WRITING EACH OF ITS AGENTS IN
THE STATE THAT THE INSURER HAS FILED A PLAN OF WITHDRAWAL.

(E) REVIEW BY COMMISSIONER.

THE COMMISSIONER SHALL REVIEW EACH PLAN OF WITHDRAWAL TO
DETERMINE ITS COMPLIANCE WITH THIS SECTION AND § 27-501 OF THIS TITLE.

(F) DISAPPROVAL BY COMMISSIONER; DEEMED APPROVAL; WITHDRAWAL
OR AMENDMENT OF FILING.

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