ROBERT L. EHRLICH, JR., Governor

Ch. 5

(II)     Except as provided in this section, an insurer or insurance
producer may not cancel or refuse to underwrite or renew a particular insurance risk
or class of risk except by the application of standards that are reasonably related to the
insurer's economic and business purposes.

(f) [In] EXCEPT AS PROVIDED IN § 27-505(A)(2) OF THIS SUBTITLE, IN the case
of cancellation of or refusal to renew a policy, the policy remains in effect until a
finding is issued under § 27-505 of this subtitle if:

(1)     the insured asks the Commissioner to review the cancellation or
refusal to renew before the effective date of the termination of the policy; and

(2)     the Commissioner begins action to issue a finding under § 27-505 of
this subtitle.

27-505.

(a) (1) If the Commissioner finds that an insurer has violated § 27-501, §
27-503, or § 27-504 of this subtitle, the Commissioner, in addition to any other power
granted by this article, may order the insurer to accept the risk, or accept the business,
as appropriate.

(2) (I) WITH RESPECT TO MEDICAL PROFESSIONAL LIABILITY
INSURANCE, THE COMMISSIONER SHALL ISSUE A FINDING WITHIN 90 DAYS AFTER
RECEIVING A REQUEST TO REVIEW THE CANCELLATION OR REFUSAL TO RENEW A
POLICY UNDER § 27-501 (F) OF THIS SUBTITLE.

(II) A MEDICAL PROFESSIONAL LIABILITY INSURER MAY
TERMINATE THE POLICY IF:

1. THE COMMISSIONER FAILS TO ISSUE A FINDING WITHIN
90 DAYS AFTER RECEIVING A REQUEST TO REVIEW THE CANCELLATION OR REFUSAL
TO RENEW; OR

2. THE COMMISSIONER FINDS THAT THE POLICY MAY BE
CANCELED OR NOT RENEWED AND ISSUED THE FINDING WITHIN 90 DAYS AFTER
RECEIVING A REQUEST TO REVIEW THE CANCELLATION OR REFUSAL TO RENEW.

(III)   IF A MEDICAL PROFESSIONAL LIABILITY INSURER
TERMINATES THE POLICY UNDER SUBPARAGRAPH (II)1 OF THIS PARAGRAPH AND
THE COMMISSIONER SUBSEQUENTLY ISSUES A FINDING THAT THE INSURER MAY
NOT CANCEL OR REFUSE TO RENEW THE POLICY:

1. THE INSURER IMMEDIATELY SHALL REINSTATE THE
POLICY; AND

2. THE REINSTATEMENT SHALL BE RETROACTIVE TO THE
DATE THAT THE POLICY WAS TERMINATED.

(b) A party to a hearing or proceeding under this subtitle may appeal from the
hearing, proceeding, or a decision of the Commissioner in accordance with § 2-215 of
this article.

- 79 -