Ch. 35

1997 LAWS OF MARYLAND

(1) TO PROTECT POLICYHOLDERS AND THE PUBLIC AGAINST THE
ADVERSE EFFECT OF EXCESSIVE, INADEQUATE, OR UNFAIRLY DISCRIMINATORY
RATES;

(2) AS THE MOST EFFECTIVE WAY TO PRODUCE RATES THAT CONFORM
TO THE STANDARDS OF PARAGRAPH (1) OF THIS SUBSECTION, TO ENCOURAGE
INDEPENDENT ACTION BY INSURERS AND REASONABLE PRICE COMPETITION
AMONG INSURERS;

(3) TO PROVIDE FORMAL REGULATORY CONTROLS FOR USE IF PRICE
COMPETITION FAILS;

(4) TO AUTHORIZE COOPERATIVE ACTION AMONG INSURERS IN THE
RATE MAKING PROCESS AND TO REGULATE THAT COOPERATION IN ORDER TO
PREVENT PRACTICES THAT TEND TO BRING ABOUT MONOPOLY OR TO LESSEN OR
DESTROY COMPETITION; AND

(5) TO PROVIDE RATES THAT ARE RESPONSIVE TO COMPETITIVE
MARKET CONDITIONS AND TO IMPROVE THE AVAILABILITY OF INSURANCE IN THE

STATE.

(B) CONSTRUCTION OF SUBTITLE.

THIS SUBTITLE SHALL BE CONSTRUED LIBERALLY TO ACHIEVE THE PURPOSES
STATED IN SUBSECTION (A) OF THIS SECTION, WHICH SHALL CONSTITUTE AN AID
AND GUIDE TO INTERPRETATION OF THIS SUBTITLE BUT NOT AN INDEPENDENT
SOURCE OF POWER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 244.

Defined terms: "Competitive market" § 11-301
"Insurance" § 1-101
"Insurer" § 1-101
"Rate" § 11-101

11-303. SCOPE OF SUBTITLE.
(A) IN GENERAL.

NOTWITHSTANDING SUBTITLE 2 OF THIS TITLE, THIS SUBTITLE APPLIES TO THE
ESTABLISHMENT OF RATES FOR ALL TYPES OF INSURANCE EXCEPT:

(1) LIFE INSURANCE;

(2) ANNUITIES;

(3) HEALTH INSURANCE;

(4) MARINE INSURANCE DESCRIBED IN § 11-202(B)(2) OF THIS TITLE;

(5) AIRCRAFT INSURANCE DESCRIBED IN § 11-202(B)(3) OF THIS TITLE;

(6) REINSURANCE;

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