PARRIS N. GLENDENING, Governor

Ch. 35

(IV) 1. IF THE COMMISSIONER FINDS THAT AN INSURER HAS
BEEN REFUSED ADMISSION AS A SUBSCRIBER TO THE RATING ORGANIZATION
WITHOUT JUSTIFICATION, THE COMMISSIONER SHALL ISSUE AN ORDER THAT
REQUIRES THE RATING ORGANIZATION TO ADMIT THE INSURER AS A SUBSCRIBER.

2. IF THE COMMISSIONER FINDS THAT THE ACTION OF THE
RATING ORGANIZATION IN REFUSING ADMISSION AS A SUBSCRIBER WAS JUSTIFIED,
THE COMMISSIONER SHALL ISSUE AN ORDER THAT AFFIRMS THE ACTION OF THE
RATING ORGANIZATION.

(C) RULE ABOUT PAYMENT OF DIVIDENDS.

A RATING ORGANIZATION MAY NOT ADOPT A RULE THE EFFECT OF WHICH
WOULD BE TO PROHIBIT OR REGULATE THE PAYMENT OF DIVIDENDS, SAVINGS, OR
UNABSORBED PREMIUM DEPOSITS ALLOWED OR RETURNED BY INSURERS TO
THEIR POLICYHOLDERS, MEMBERS, OR SUBSCRIBERS.

(D) COOPERATION AUTHORIZED.

(1) COOPERATION AMONG RATING ORGANIZATIONS OR AMONG
RATING ORGANIZATIONS AND INSURERS IN RATE MAKING OR IN OTHER MATTERS
WITHIN THE SCOPE OF THIS SUBTITLE IS AUTHORIZED, IF THE FILINGS THAT
RESULT FROM THE COOPERATION ARE SUBJECT TO ALL PROVISIONS OF THIS
SUBTITLE THAT ARE APPLICABLE TO FILINGS GENERALLY.

(2) (I) THE COMMISSIONER MAY REVIEW COOPERATIVE ACTIVITIES
AND PRACTICES AMONG RATING ORGANIZATIONS AND AMONG RATING
ORGANIZATIONS AND INSURERS.

(II) IF, AFTER A HEARING, THE COMMISSIONER FINDS THAT AN
ACTIVITY OR PRACTICE IS UNFAIR, UNREASONABLE, OR OTHERWISE INCONSISTENT
WITH THIS SUBTITLE, THE COMMISSIONER MAY ISSUE AN ORDER THAT REQUIRES
THAT THE ACTIVITY OR PRACTICE BE DISCONTINUED.

(E) EXAMINATION OF EVIDENCE OF INSURANCE.

(1) A RATING ORGANIZATION MAY PROVIDE FOR THE EXAMINATION
OF POLICIES, DAILY REPORTS, BINDERS, RENEWAL CERTIFICATES, ENDORSEMENTS,
OR OTHER EVIDENCE OF INSURANCE OR THE CANCELLATION OF INSURANCE AND
MAY MAKE REASONABLE RULES THAT GOVERN THEIR SUBMISSION.

(2) RULES ADOPTED UNDER THIS SUBSECTION SHALL REQUIRE THAT:

(I) WITHIN 60 DAYS AFTER A RATING ORGANIZATION HAS
NOTIFIED AN INSURER OF A ERROR OR OMISSION, THE INSURER SHALL PROVIDE
TO THE RATING ORGANIZATION SATISFACTORY EVIDENCE OF THE CORRECTION OF
THE ERROR OR OMISSION; AND

(II) THE RATING ORGANIZATION SHALL NOTIFY THE
COMMISSIONER IF AN INSURER FAILS TO PROVIDE SATISFACTORY EVIDENCE OF
THE CORRECTION OF THE ERROR OR OMISSION.

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