Ch. 35

1997 LAWS OF MARYLAND

In subsection (a) of this section, the former cross-reference to Art. 48A, "§
242B", which is revised in Subtitle 5 of this title, is deleted as unnecessary in
light of the scope provision in § 11-501 of this title.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101
"Reinsurance" § 1-101

11-223. RESERVED.

11-224. RESERVED.

PART V. ADMINISTRATIVE PROVISIONS.
11-225. EXAMINATIONS OF RATING ORGANIZATIONS AND OTHER ENTITIES.

(A) REQUIRED.

(1) AT LEAST ONCE EVERY 5 YEARS, THE COMMISSIONER SHALL MAKE
AN EXAMINATION OF EACH RATING ORGANIZATION LICENSED IN THE STATE.

(2) WHENEVER THE COMMISSIONER CONSIDERS IT EXPEDIENT, THE
COMMISSIONER MAY MAKE AN EXAMINATION OF EACH ADVISORY ORGANIZATION
AND EACH GROUP, ASSOCIATION, OR OTHER ORGANIZATION THAT ENGAGES IN
JOINT UNDERWRITING OR JOINT REINSURANCE.

(B) COSTS.

THE ENTITY EXAMINED SHALL PAY THE REASONABLE COSTS OF AN
EXAMINATION ON PRESENTATION TO IT OF A DETAILED ACCOUNT OF THE COSTS.

(C) CONDUCT.

THE OFFICERS, MANAGER, AGENTS, AND EMPLOYEES OF THE ENTITY
EXAMINED MAY BE EXAMINED AT ANY TIME UNDER OATH AND SHALL EXHIBIT ALL
BOOKS, RECORDS, ACCOUNTS, DOCUMENTS, OR AGREEMENTS THAT GOVERN THE
ENTITY'S METHODS OF OPERATION.

(D) REPORT OF EXAMINATION BY ANOTHER STATE.

INSTEAD OF MAKING AN EXAMINATION UNDER THIS SECTION, THE
COMMISSIONER MAY ACCEPT THE REPORT OF AN EXAMINATION MADE BY THE
INSURANCE SUPERVISORY OFFICIAL OF ANOTHER STATE UNDER THE LAWS OF
THAT STATE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 242(n).

In subsection (a)(2) of this section, the phrase "that engages in joint
underwriting or joint reinsurance" is added to modify "group, association, or
other organization" to clarify which organizations are subject to examination
under this section and for consistency with language used in § 11-222 of this
subtitle.

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