Ch. 35

1997 LAWS OF MARYLAND

(II) THE USE OF GENERALIZED TERMS SUCH AS "PERSONAL
HABITS", "LIVING CONDITIONS", "POOR MORALS", OR "VIOLATION OR ACCIDENT
RECORD" DOES NOT MEET THE REQUIREMENTS OF THIS PARAGRAPH.

(C) STATEMENT OF ACTUAL REASON PRIVILEGED.

A STATEMENT OF ACTUAL REASON CONTAINED IN THE NOTICE GIVEN UNDER
SUBSECTION (B) OF THIS SECTION IS PRIVILEGED AND DOES NOT CONSTITUTE
GROUNDS FOR AN ACTION AGAINST THE INSURER, ITS REPRESENTATIVES, OR
ANOTHER PERSON THAT IN GOOD FAITH PROVIDES TO THE INSURER INFORMATION
ON WHICH THE STATEMENT IS BASED.

(D) PROTEST BY INSURED.

(1) AN INSURED MAY PROTEST A PROPOSED ACTION OF THE INSURER
UNDER THIS SECTION BY SIGNING TWO COPIES OF THE NOTICE AND SENDING THEM
TO THE COMMISSIONER WITHIN 30 DAYS AFTER THE MAILING DATE OF THE NOTICE.

(2) ON RECEIPT OF A PROTEST, THE COMMISSIONER SHALL NOTIFY THE
INSURER OF THE FILING OF THE PROTEST.

(3) A PROTEST FILED WITH THE COMMISSIONER STAYS THE PROPOSED
ACTION OF THE INSURER PENDING A FINAL DETERMINATION BY THE
COMMISSIONER.

(4) THE INSURER SHALL MAINTAIN IN EFFECT THE SAME COVERAGE
AND PREMIUM THAT WERE IN EFFECT ON THE DAY THE NOTICE OF PROPOSED
ACTION WAS SENT TO THE INSURED UNTIL A FINAL DETERMINATION IS MADE,
SUBJECT TO THE PAYMENT OF ANY AUTHORIZED PREMIUM DUE OR BECOMING
DUE BEFORE THE DETERMINATION.

(E) ACTION BY COMMISSIONER; HEARING.

(1) BASED ON THE INFORMATION CONTAINED IN THE NOTICE, THE
COMMISSIONER:

(I) SHALL DETERMINE WHETHER THE PROTEST BY THE INSURED
HAS MERIT; AND

(II) EITHER SHALL DISMISS THE PROTEST OR DISALLOW THE
PROPOSED ACTION OF THE INSURER.

(2) THE COMMISSIONER SHALL NOTIFY THE INSURER AND THE
INSURED OF THE ACTION OF THE COMMISSIONER PROMPTLY IN WRITING.

(3) WITHIN 30 DAYS AFTER THE MAILING DATE OF THE
COMMISSIONER'S NOTICE OF ACTION, THE AGGRIEVED PARTY MAY REQUEST A
HEARING.

(4) THE COMMISSIONER SHALL:

(I) HOLD A HEARING WITHIN A REASONABLE TIME AFTER THE
REQUEST FOR A HEARING; AND

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