H.B. 2                                                           VETOES

(2) AFTER A HEARING, THE COMMISSIONER DETERMINES THAT THE
SURPLUS IS UNREASONABLY LARGE.

(B)      IF THE COMMISSIONER HAS DETERMINED THAT THE SURPLUS OF THE
SOCIETY IS EXCESSIVE, THE COMMISSIONER SHALL NOT APPROVE A RATE INCREASE
SOUGHT BY THE SOCIETY UNTIL THE COMMISSIONER DETERMINES THAT THE
SURPLUS OF THE SOCIETY IS NO LONGER EXCESSIVE.

24-213.

(A) THE LEGISLATIVE AUDITOR ANNUALLY SHALL CONDUCT A FISCAL AND
COMPLIANCE AUDIT OF THE ACCOUNTS AND TRANSACTIONS OF THE SOCIETY.

(B) THE SOCIETY SHALL PAY THE COST OF EACH AUDIT.
24-214.

(A) IN THIS SECTION, "MEDICAL PROFESSIONAL LIABILITY INSURANCE"
MEANS INSURANCE PROVIDING COVERAGE AGAINST DAMAGES DUE TO MEDICAL
INJURY ARISING OUT OF THE PERFORMANCE OF PROFESSIONAL SERVICES
RENDERED OR WHICH SHOULD HAVE BEEN RENDERED BY A HEALTH CARE
PROVIDER

(B) NOTWITHSTANDING § 10-130(A) OF THIS SUBTITLE, THE SOCIETY SHALL:

(1) OFFER POLICYHOLDERS AND POTENTIAL POLICYHOLDERS THE
ABILITY TO PURCHASE AND RENEW COVERAGE DIRECTLY FROM THE SOCIETY; AND

(2) FOR A POLICYHOLDER THAT PURCHASES OR RENEWS COVERAGE
DIRECTLY, PROVIDE A PREMIUM DISCOUNT OR REBATE IN AN AMOUNT EQUIVALENT
TO THE COMMISSION THE SOCIETY WOULD HAVE PAID AN INSURANCE PRODUCER
TO SELL THE SAME POLICY LESS 1% FOR ADMINISTRATIVE EXPENSE.

(C)      BEGINNING JANUARY 1, 2005 UNTIL DECEMBER 31, 2009, AN AUTHORIZED
INSURER THAT ISSUES POLICIES OF MEDICAL PROFESSIONAL LIABILITY
INSURANCE IN THE STATE MAY NOT PAY A COMMISSION AT A RATE THAT EXCEEDS
5% OF THE PREMIUM.

27-501.

(a) (1) An insurer or insurance producer may not cancel or refuse to
underwrite or renew a particular insurance risk or class of risk for a reason based
wholly or partly on race, color, creed, sex, or blindness of an applicant or policyholder
or for any arbitrary, capricious, or unfairly discriminatory reason.

(2) (I) THIS PARAGRAPH DOES NOT APPLY TO A MEDICAL
PROFESSIONAL LIABILITY INSURER OR INSURANCE PRODUCER THAT ISSUES OR
DELIVERS A POLICY IN THE STATE TO A HEALTH CARE PROVIDER WHO HAS BEEN
LICENSED FOR MORE THAN 3 YEARS BY THE APPROPRIATE STATE LICENSING BOARD
FOR THE HEALTH CARE PROVIDER

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