PARRIS N. GLENDENING, Governor Ch. 35

SEARCHES FOR INSTRUMENTS, LIENS, CHARGES, OR OTHER MATTERS AFFECTING
THE TITLE TO REAL OR LEASEHOLD PROPERTY OR AN ESTATE IN REAL OR
LEASEHOLD PROPERTY.

(B) APPLICABILITY TO INSURERS.

THIS SUBTITLE APPLIES TO A PERSON THAT MAKES GUARANTEES OR ISSUES
INSURANCE DESCRIBED IN SUBSECTION (A) OF THIS SECTION.

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

In subsection (b) of this section, the former definition of "insurer" is revised
as a scope provision to reflect the Insurance Article Review Committee's
understanding of this provision. No substantive change is intended.

Defined terms: "Insurance" § 1-101
"Person" § 1-101

11-402. RATE MAKING PRINCIPLES GENERALLY.

(A) IN GENERAL.

ALL TITLE INSURANCE RATES SHALL BE MADE IN ACCORDANCE WITH THIS
SECTION.

(B) REASONABLE AND ADEQUATE RATES.

RATES SHALL BE REASONABLE AND ADEQUATE FOR THE CLASS OF RISKS TO
WHICH THEY APPLY.

(C) UNFAIRLY DISCRIMINATORY RATES.

RATES MAY NOT DISCRIMINATE UNFAIRLY BETWEEN RISKS THAT INVOLVE
ESSENTIALLY THE SAME HAZARDS AND EXPENSE ELEMENTS.

(D) FACTORS TO BE CONSIDERED.

DUE CONSIDERATION SHALL BE GIVEN TO:

(1) PAST AND PROSPECTIVE LOSS EXPERIENCE WITHIN AND OUTSIDE
THE STATE;

(2) A REASONABLE MARGIN FOR PROFIT AND CONTINGENCIES;

(3) THE COST OF PARTICIPATING INSURANCE;

(4) THE PERCENTAGE TO BE ALLOCATED TO RESERVE;

(5) OPERATING EXPENSES; AND

(6) ALL OTHER RELEVANT FACTORS FAIRLY ATTRIBUTABLE TO THE
BUSINESS OF TITLE INSURANCE.

(E) CLASSIFICATIONS OF GUARANTEES.

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