Ch. 35

1997 LAWS OF MARYLAND

(1) IF, AFTER A HEARING, THE COMMISSIONER FINDS THAT A RATE IS
NOT IN COMPLIANCE WITH § 11-306 OF THIS SUBTITLE OR THAT A RATE WAS SET IN
VIOLATION OF § 11-342 OF THIS SUBTITLE, THE COMMISSIONER SHALL ISSUE AN
ORDER THAT REQUIRES THAT USE OF THE RATE BE DISCONTINUED FOR EACH
POLICY ISSUED OR RENEWED AFTER A DATE SPECIFIED IN THE ORDER.

(2) THE ORDER MAY PROVIDE PROSPECTIVELY FOR PREMIUM
ADJUSTMENT OF EACH POLICY THEN IN FORCE.

(3) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, THE
COMMISSIONER SHALL ISSUE THE ORDER WITHIN 30 DAYS AFTER THE CONCLUSION
OF THE HEARING OR WITHIN A REASONABLE EXTENSION OF THAT TIME SET BY THE
COMMISSIONER.

(4) AN ORDER ISSUED UNDER THIS SUBSECTION EXPIRES 1 YEAR
AFTER ITS EFFECTIVE DATE UNLESS IT IS RESCINDED EARLIER BY THE
COMMISSIONER.

(B) PROSPECTIVE SUSPENSION OF RATE.

(1) PENDING A HEARING, THE COMMISSIONER MAY ISSUE AN ORDER
THAT PROSPECTIVELY SUSPENDS A RATE FILED BY AN INSURER AND REIMPOSES
THE LAST PREVIOUS RATE IN EFFECT IF THE COMMISSIONER HAS REASONABLE
CAUSE TO BELIEVE THAT:

(I) THE RATE IS IN VIOLATION OF § 11-306 OF THIS SUBTITLE;

(II) UNLESS THE ORDER OF SUSPENSION IS ISSUED, CERTAIN
INSUREDS WILL SUFFER IRREPARABLE HARM;

(III) THE HARDSHIP THAT INSUREDS WILL SUFFER IN THE ABSENCE
OF THE ORDER OF SUSPENSION OUTWEIGHS THE HARDSHIP THAT THE INSURER
WOULD SUFFER IF THE ORDER OF SUSPENSION WERE ISSUED; AND

(IV) THE ORDER OF SUSPENSION WILL NOT CAUSE SUBSTANTIAL
HARM TO THE PUBLIC.

(2) UNLESS THE INSURER WAIVES A HEARING, THE COMMISSIONER:

(I) SHALL HOLD A HEARING WITHIN 15 WORKING DAYS AFTER
ISSUING THE ORDER OF SUSPENSION; AND

(II) WITHIN 15 WORKING DAYS AFTER THE CONCLUSION OF THE
HEARING, SHALL MAKE A DETERMINATION AND ISSUE AN ORDER AS TO WHETHER
THE RATE SHOULD BE DISAPPROVED.

(C) DETERMINATION OF DEGREE OF COMPETITION IN MARKET; EFFECT ON
RATES.

(1) (I) AT A HEARING TO DETERMINE COMPLIANCE WITH §
11-306(B)(2) OF THIS SUBTITLE, THE COMMISSIONER FIRST SHALL DETERMINE
WHETHER A REASONABLE DEGREE OF COMPETITION EXISTS WITHIN A MARKET
AND SHALL ISSUE A RULING TO THAT EFFECT.

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