reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 1 - Certificates of Authority › Section 4-106 - Deposit of Securities

(a)    Except as provided in subsections (b) and (c) of this section, to qualify for a certificate of authority, an insurer shall deposit and maintain in trust with the Treasurer, for the protection of the insurer’s policyholders and creditors, an amount not less than $100,000 in:
(1)    cash; or
(2)    government securities eligible for the investment of capital funds of domestic insurers as specified in § 5-701(b) of this article.
(b)    For a foreign insurer, instead of all or part of the deposit required by subsection (a) of this section, the Commissioner shall accept the current certificate of the insurance supervisory official of another state showing that a like deposit by the foreign insurer is being maintained:
(1)    in public custody or in a depository approved by the official; and
(2)    in trust for protection of the policyholders and creditors of the foreign insurer in the United States.
(c)    For an alien insurer, instead of all or part of the deposit required by subsection (a) of this section, the Commissioner shall accept evidence satisfactory to the Commissioner that the alien insurer maintains in the United States assets available for discharge of its insurance obligations in the United States:
(1)    in public depositories, or in trust institutions in the United States approved by the Commissioner; and
(2)    in an amount not less than the outstanding liabilities of the insurer arising out of its insurance business in the United States, plus an amount equal to the deposit required under this section for other insurers requesting authority to engage in like kinds of insurance business.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 1 - Certificates of Authority › Section 4-107 - Service of Process

(a)    On the form that the Commissioner provides, each insurer applying for a certificate of authority must appoint the Commissioner as attorney for service of process issued against the insurer in the State.
(b)    The appointment:
(1)    is irrevocable;
(2)    binds the insurer and any successor in interest or successor to the assets and liabilities of the insurer; and
(3)    remains in effect as long as there is in force in the State a contract made by the insurer or an obligation arising from a contract made by the insurer.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 1 - Certificates of Authority › Section 4-108 - Applications for Initial Certificate of Authority

An applicant for an initial certificate of authority shall:
(1)    file with the Commissioner an application on the form that the Commissioner provides;
(2)    pay to the Commissioner the applicable fees required by § 2-112 of this article; and
(3)    file with the Commissioner:
(i)    a certified copy of its articles of incorporation with all amendments;
(ii)    a certified copy of its bylaws with all amendments;
(iii)    a copy of its annual statement as of the immediately preceding December 31;
(iv)    for a foreign insurer or alien insurer, a copy of the report of last examination, if any, made of the insurer certified by the insurance supervisory official of the state of domicile of the foreign insurer or the state of entry into the United States of the alien insurer;
(v)    for a foreign insurer or alien insurer, a certificate of the insurance supervisory official of the state or country of domicile or state of entry into the United States of the insurer showing that the insurer is authorized to transact the kinds of insurance business proposed to be transacted in this State;
(vi)    for an alien insurer, a copy of the appointment and authority of its United States manager;
(vii)    a certificate evidencing a deposit in accordance with § 4-106 of this subtitle; and
(viii)    any other information and documents that the Commissioner considers necessary to protect policyholders or ensure compliance with this article.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 1 - Certificates of Authority › Section 4-109 - Issuance or Disapproval of Initial Certificate of Authority

(a)    Within a reasonable time after the filing of a completed application for an initial certificate of authority, the Commissioner shall:
(1)    issue an appropriate certificate of authority; or
(2)    disapprove the application and state the grounds for disapproval.
(b)    On request of an insurer, the Commissioner may issue a certificate of authority limited to a particular type of insurance or insurance coverage within the scope of a kind of insurance.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 1 - Certificates of Authority › Section 4-111 - Scope of Certificate of Authority

(a)    Except as otherwise provided in this section, a certificate of authority authorizes an insurer to engage in one kind or a combination of kinds of insurance business.
(b)    (1)    Subject to paragraph (2) of this subsection, an insurer authorized to engage in the business of life insurance may also write annuity contracts but the insurer is not authorized to engage in any other kind of insurance business except health insurance.
(2)    The Commissioner shall continue to authorize an insurer authorized to engage in the business of life insurance to engage in other kinds of insurance business, in addition to annuities and health insurance, if the insurer:
(i)    was authorized to engage in one kind or a combination of kinds of insurance business in addition to life insurance, health insurance, and annuities immediately before December 31, 1963; and
(ii)    is otherwise qualified to engage in that kind or combination of kinds of insurance business.
(c)    A reciprocal insurer may not engage in the business of life insurance or health insurance except as supplementary coverage in policies of liability insurance.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 1 - Certificates of Authority › Section 4-114 - Cease and Desist Orders

(a)    Without notice and before hearing, the Commissioner may issue and have served on an insurer an order requiring the insurer immediately to cease and desist from writing insurance in the State if it appears to the Commissioner that:
(1)    the insurer is:
(i)    conducting its business and affairs in a manner that threatens to make it insolvent or that is hazardous to its policyholders, creditors, or the general public; or
(ii)    engaged in an act, practice, or transaction that constitutes grounds making the insurer subject to conservation or liquidation proceedings; and
(2)    irreparable loss and injury to the property and business of the insurer or the general public has occurred or may occur unless the Commissioner acts immediately.
(b)    (1)    When an order is served on an insurer under subsection (a) of this section, the Commissioner shall issue and also serve on the insurer notice of a hearing to be held at a place and time not later than 5 days after the date of the order.
(2)    If the insurer waives the right to a hearing within 5 days after the date of the order, the hearing shall be held within 30 days after service of the order.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 1 - Certificates of Authority › Section 4-116 - Annual and Interim Statements; Audited Financial Report

(a)    (1)    On or before March 1 of each year, unless the Commissioner extends the time for good cause, each authorized insurer shall file with the Commissioner a complete statement of its financial condition, transactions, and affairs for the immediately preceding calendar year.
(2)    The annual statement shall:
(i)    be in the form and have the content approved for current use by the National Association of Insurance Commissioners or its successor organization; and
(ii)    contain any additional information that the Commissioner requires.
(3)    Unless the Commissioner requires otherwise, the statement of an alien insurer shall relate only to its transactions and affairs in the United States.
(4)    Unless the Commissioner extends the time for filing, an authorized insurer that fails to file an annual statement on or before March 10 shall pay a penalty of:
(i)    $100 for each day from March 1 to March 10, both inclusive; and
(ii)    $150 for each day from March 11 to the day before the Commissioner receives the statement, both inclusive.
(b)    At any time, the Commissioner may require an authorized insurer to file an interim statement containing the information that the Commissioner considers necessary.
(c)    (1)    Except as provided in subsection (d) of this section, on or before June 1 of each year, an authorized insurer shall file with the Commissioner an audited financial report for the immediately preceding calendar year.
(2)    The authorized insurer shall have the report prepared by an independent certified public accountant.
(3)    The Commissioner may:
(i)    set requirements for the form and content of the report; and
(ii)    for good cause, extend the time for filing the report.
(4)    Unless the Commissioner extends the time for filing, an authorized insurer that fails to file an audited financial report on or before June 10 shall pay a penalty of:
(i)    $100 for each day from June 1 to June 10, both inclusive; and
(ii)    $150 for each day from June 11 to the day before the Commissioner receives the report, both inclusive.
(d)    With 90 days’ advance notice, the Commissioner may require an authorized insurer to file an audited financial report earlier than the date specified in subsection (c) of this section.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 1 - Certificates of Authority › Section 4-117 - Notice to Third Party Claimant of Payment to Attorney

(a)    At the time of payment, if the payment has been specifically authorized by the claimant’s attorney, an insurer shall provide written notice to a third party claimant of payment of $2,000 or more in settlement of a third party liability claim for bodily injury if:
(1)    the claimant is an individual; and
(2)    the payment is delivered to the claimant’s attorney by check, draft, or other means.
(b)    The notice required by subsection (a) of this section shall be sent by regular mail no more than 5 working days after payment is delivered under subsection (a)(2) of this section to the claimant at the last known address of the claimant.
(c)    The insurer may provide notice to the claimant by a copy of the letter of transmittal to the claimant’s attorney.
(d)    This section may not be construed to create:
(1)    a cause of action for any person against an insurer based on the insurer’s failure to provide the notice required by this section; or
(2)    a defense for any party against a cause of action based on the insurer’s failure to provide the notice required by this section.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-201 - Scope of Subtitle

(a)    In this section, “industrial insured” means an insured that:
(1)    procures the insurance of a risk by the services of a full-time employee acting as an insurance manager or buyer or a regularly and continuously retained qualified insurance consultant;
(2)    has aggregate annual premiums for insurance on all risks that total at least $100,000; or
(3)    has at least 25 full-time employees.
(b)    This subtitle does not apply to:
(1)    transactions in the State that involve, and are subsequent to the issuance of, a policy that was lawfully solicited, written, and delivered outside of the State that covers only a subject of insurance not resident, located, or expressly to be performed in the State at the time of issuance of the policy;
(2)    an individual life insurance policy or individual health insurance policy in force on July 1, 1968;
(3)    reinsurance of the liability of an authorized insurer;
(4)    insurance against perils of navigation, transit, or transportation on hulls, freights, or disbursements, or other shipowner interest, on goods, wares, merchandise, and all other personal property and interests in personal property in the course of exportation from or importation into a country, or transportation coastwise, including transportation by land or water from point of origin to final destination and including war risks, and on marine builder's risks, dry docks, and marine railways, including insurance of ship repairer's liability, and protection and indemnity insurance, except for insurance covering:
(i)    bridges and tunnels;
(ii)    pleasure craft that are under 60 feet in length and are owned and used for pleasure and not for business, hire, or other commercial use;
(iii)    fishing vessels under 50 gross tons that are not part of a fleet of three or more vessels; or
(iv)    charter or head boats under 50 gross tons that are not part of a fleet of three or more vessels;
(5)    aircraft insurance;
(6)    insurance on property or operations of railroads engaged in interstate commerce;
(7)    surplus lines insurance effected in accordance with Title 3, Subtitle 3 of this article;
(8)    insurance against legal liability arising out of the ownership, operation, or maintenance of property with a permanent situs outside of the State; or
(9)    insurance against loss of or damage to property with a permanent situs outside of the State.
(c)    Except for the premium tax requirement of § 4-209 of this subtitle and the reporting requirement of § 4-210 of this subtitle, this subtitle does not apply to an insurer or underwriter issuing an insurance contract to an industrial insured.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-202 - Legislative Policy

(a)    The General Assembly finds that:
(1)    many residents of the State hold policies issued by insurers and other persons not authorized to do insurance business in the State;
(2)    these residents face the often insurmountable obstacle of asserting their legal rights under those policies in forums that are foreign to them and under laws and rules of practice that are unfamiliar to them; and
(3)    protection from the acts of insurers and other persons not authorized to do insurance business in the State can be achieved by:
(i)    maintaining fair and honest insurance markets;
(ii)    protecting the premium tax revenues of the State;
(iii)    protecting authorized insurers, which are subject to strict regulation, from unfair competition by unauthorized persons and unauthorized insurers; and
(iv)    protecting against evasion of the insurance regulatory laws of the State.
(b)    (1)    The General Assembly intends to subject certain insurers and other persons to the jurisdiction of the Commissioner, in proceedings before the Commissioner, and to the courts of the State in suits by or for the State and insureds or beneficiaries under insurance contracts.
(2)    To carry out this intent, the General Assembly provides for substituted service of process on certain insurers and other persons in any proceeding in a court and substituted service of any notice, order, pleading, or process on certain insurers and other persons in any proceeding before the Commissioner to enforce or effect full compliance with the insurance and tax laws of the State.
(c)    In carrying out the intent of this subtitle, the General Assembly declares that it is exercising:
(1)    its power to protect the residents of the State;
(2)    its power to define what constitutes doing an insurance business in the State; and
(3)    its powers and privileges under the McCarran-Ferguson Act.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-203 - Acting as Insurance Producer for Unauthorized Insurer Prohibited

(a)    This section does not apply to:
(1)    acceptance of service of process;
(2)    surplus lines insurance;
(3)    a transaction for which a certificate of authority is not required under § 4-101(b) of this title;
(4)    reinsurance, as authorized under Title 5, Subtitle 9 of this article;
(5)    an adjuster while providing services with respect to a claim under a policy lawfully solicited, issued, and delivered outside of the State; or
(6)    the professional services of an attorney at law.
(b)    With respect to a subject of insurance resident, located, or to be performed in the State, a person may not in the State directly or indirectly act as an insurance producer for, or otherwise represent or help on behalf of another, an unauthorized insurer to:
(1)    solicit, negotiate, or effect insurance or an annuity contract;
(2)    inspect risks;
(3)    fix rates;
(4)    investigate or adjust losses;
(5)    collect premiums; or
(6)    transact insurance business in any other manner.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-204 - Advertisements of Unauthorized Insurers, Insurance Producers, and Others

(a)    (1)    A person may not accept for publication or printing in a newspaper, magazine, or other periodical, or for broadcast on radio or television in the State, an advertisement or other notice that directly or indirectly solicits business for or sets forth the advantages of doing business with an insurer, insurance producer, or other person, unless the person that will publish or broadcast the advertisement or notice has a certificate issued by the Commissioner stating that the insurer, insurance producer, or other person named in the certificate is authorized to transact insurance business in the State.
(2)    On application of any person, the Commissioner shall issue the certificate without charge.
(b)    A person may not publish or print in a newspaper, magazine, periodical, circular letter, pamphlet, or in any other manner, or broadcast by radio or television in the State, an advertisement or other notice that directly or indirectly solicits business for or sets forth the advantages of doing business with an insurer, insurance producer, or other person that is not authorized to transact insurance business in the State.
(c)    A manufacturer, jobber, wholesaler, or retailer may not distribute or cause to be distributed matchbooks or other advertising matter, except newspapers and magazines of general circulation, that directly or indirectly solicits business for or sets forth the advantages of doing business with an insurer, insurance producer, or other person that is not authorized to transact insurance business in the State.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-208 - Contracts of Unauthorized Insurers Not Enforceable

(a)    This section does not apply to:
(1)    lawfully procured surplus lines insurance; or
(2)    insurance contracts that are independently procured through negotiations occurring entirely outside of the State and that are reported and on which the premium tax is paid under §§ 4-210 and 4-211 of this subtitle.
(b)    An unauthorized insurer may not enforce an insurance contract effective in the State and entered into by the unauthorized insurer.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-209 - Premium Receipts Tax -- Unauthorized Insurers

(a)    This section does not apply to:
(1)    premiums on lawfully procured surplus lines insurance;
(2)    premiums on independently procured insurance on which a tax has been paid under § 4–211 of this subtitle; or
(3)    wet marine and transportation insurance.
(b)    (1)    If an unauthorized insurer effects, continues, or renews insurance on a subject resident, located, or to be performed in the State, the unauthorized insurer shall pay to the Commissioner, before March 1 of the next calendar year, a premium receipts tax of 3% of gross premiums charged for the insurance.
(2)    For policies effective before July 21, 2011:
(i)    if the policy covers property, risks, or exposures located or to be performed entirely in the State, the premium receipts tax shall be computed on the entire premium at the rate specified in paragraph (1) of this subsection; and
(ii)    if the policy covers property, risks, or exposures located or to be performed both in and outside the State, the premium receipts tax shall be computed at the rate specified in paragraph (1) of this subsection only on that portion of the premium that is properly allocable to the risks located in the State.
(3)    For policies effective on or after July 21, 2011, if the State is the insured’s home state, the premium receipts tax shall be computed on the entire premium at the rate specified in paragraph (1) of this subsection.
(4)    Insurance that an unauthorized insurer effects, continues, or renews on a subject resident, located, or to be performed in the State that is procured through negotiations or an application wholly or partly occurring or made in or from within or outside of the State, or for which premiums wholly or partly are remitted directly or indirectly from in or outside of the State, is deemed to be insurance procured, continued, or renewed in the State.
(c)    The premium receipts tax under this section is instead of all other State taxes.
(d)    If an unauthorized insurer defaults on the payment of the tax under this section, the insured shall pay the tax.
(e)    If the tax is not timely paid under subsection (b) of this section, the amount of the tax due shall be increased by a penalty of:
(1)    25% of the tax due; and
(2)    an amount computed at the rate of 1% per month or any part of a month after the date the payment was due to the date the payment is made.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-210 - Report by Insured

(a)    In this section, “insured” includes an industrial insured who procures insurance of a risk through a full–time employee acting as a risk manager.
(b)    (1)    Each insured that procures or causes to be procured insurance with an unauthorized insurer, or an insured or self–insured that procures or continues excess loss, catastrophe, or other insurance with an unauthorized insurer, on a subject of insurance resident, located, or to be performed in the State other than surplus lines insurance, shall file with the Commissioner a report under this section.
(2)    Insurance with an unauthorized insurer on a subject of insurance resident, located, or to be performed in the State that is procured through negotiations or an application wholly or partly occurring or made in or from within or outside of the State, or for which the premiums wholly or partly are remitted directly or indirectly from in or outside of the State, is deemed to be insurance procured in the State.
(c)    For policies effective before July 21, 2011, a report under this section shall be filed within 60 days after the date that the insurance was procured.
(d)    For policies effective on or after July 21, 2011, on or before March 15 and September 15 of each year, or at another interval that the Commissioner directs, each insured shall:
(1)    file with the Commissioner a report, on a form the Commissioner prescribes, on business subject to tax during the preceding half calendar year or other interval that the Commissioner directs; and
(2)    pay to the Commissioner the total amount of tax stated in the report.
(e)    By regulation, the Commissioner shall determine the required content and filing deadlines of the reports.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-211 - Premium Receipts Tax -- Insureds

(a)    This section does not apply to wet marine and transportation insurance.
(b)    (1)    If an insured procures, continues, or renews insurance from an unauthorized insurer that is subject to a report under § 4–210 of this subtitle, a premium receipts tax of 3% of the gross premiums charged for the insurance is levied on the obligation, chose in action, or right represented by the premium charged for the insurance.
(2)    If an insurance contract subject to the tax is canceled and rewritten, the additional premium, for purposes of the premium receipts tax, is the premium in excess of the unearned premium of the canceled insurance contract.
(c)    If the insured fails to withhold from the premium the amount of the tax levied under this section, the insured is liable for the amount of the tax imposed under subsection (b) of this section and shall pay the tax to the Commissioner.
(d)    If the tax imposed under subsection (b) of this section is not timely paid, the amount of the tax due shall be increased by a penalty of:
(1)    25% of the tax due; and
(2)    an amount computed at the rate of 1% per month or part of a month after the date the payment is due until the date the payment is made.
(e)    If the tax is not timely paid under this section, on request of the Commissioner, the Attorney General shall proceed in a court of this State or another state or in a federal court or agency to recover the tax.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 2 - Unauthorized Insurers › Section 4-211.1 - Premium Receipts Tax -- Nonadmitted or Unauthorized Insurance

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Act” has the meaning stated in § 3–301 of this article.
(3)    “Home state” has the meaning stated in § 3–301 of this article.
(4)    “Nonadmitted insurance” has the meaning stated in § 3–301 of this article.
(b)    For policies effective on or after July 21, 2011, the placement of nonadmitted insurance is subject to the statutory and regulatory requirements solely of the insured’s home state.
(c)    The premiums charged for unauthorized insurance are subject to a premium receipts tax in the State on all gross premiums, less any returned premiums, charged for nonadmitted insurance as specified in §§ 4–209 and 4–211 of this subtitle.
(d)    For policies effective before July 21, 2011:
(1)    if the policy covers property, risks, or exposures located or to be performed entirely in the State, the premium receipts tax shall be computed on the entire premium at the rate specified in subsection (c) of this section; and
(2)    if the policy covers property, risks, or exposures located or to be performed both in and outside the State, the premium receipts tax shall be computed at the rate specified in subsection (c) of this section only on that portion of the premium that is properly allocable to the risks located in the State.
(e)    For policies effective on or after July 21, 2011, if the State is the insured’s home state, the premium receipts tax shall be computed on the entire premium at the rate specified in subsection (c) of this section.
(f)    For policies effective on or after July 21, 2011, only the home state of an insured may receive premium receipts tax payments and reports for nonadmitted insurance.
(g)    For policies effective on or after July 21, 2011, the regulation of nonadmitted insurance is subject to the statutory and regulatory requirements solely of the home state of the insured.
(h)    The Commissioner shall cooperate with other states to adopt and implement uniform requirements for nonadmitted insurance in compliance with the Act.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-302 - Public Policy

It is the public policy of the State that, in order to safeguard the solvency of the insurance business in the State:
(1)    an insurer should maintain an amount of capital in excess of the minimum RBC levels derived from the risk based capital requirements contained in this subtitle and the attendant formulas, schedules, and instructions; and
(2)    additional capital is used and useful in the insurance business and helps to secure an insurer against various risks inherent in, or affecting, the insurance business and not accounted for or only partially measured by the risk based capital requirements contained in this subtitle.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-303 - Rbc Reports

(a)    (1)    (i)    On or before the filing date, each domestic insurer shall prepare and submit to the Commissioner a report of its RBC levels as of the end of the immediately preceding calendar year.
(ii)    The RBC report shall be in the form and shall contain the information required by the RBC instructions.
(2)    In addition to the requirements of paragraph (1) of this subsection, each domestic insurer shall file its RBC report:
(i)    with the NAIC in accordance with the RBC instructions; and
(ii)    on written request, with the insurance commissioner of any state in which the insurer is authorized to do business, on or before the later of:
1.    15 days after receipt of the written request to file its RBC report with that state; or
2.    the filing date.
(b)    If a domestic insurer files an RBC report that, in the judgment of the Commissioner, is inaccurate, the Commissioner shall:
(1)    adjust the RBC report to correct the inaccuracy; and
(2)    notify the insurer of the adjustment, including a statement of the reason for the adjustment.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-304 - Risk Based Capital Requirements

(a)    (1)    A life insurer’s or fraternal benefit society’s risk based capital shall be determined in accordance with the formula set forth in the RBC instructions.
(2)    By applying the factors in the manner set forth in the RBC instructions, the formula shall take into account and may adjust for the covariance between:
(i)    the risk with respect to the life insurer’s or fraternal benefit society’s assets;
(ii)    the risk of adverse insurance experience with respect to the life insurer’s or fraternal benefit society’s liabilities and obligations;
(iii)    the interest rate risk with respect to the life insurer’s or fraternal benefit society’s business; and
(iv)    all other business risks and other relevant risks as set forth in the RBC instructions.
(b)    (1)    Except as provided in subsection (a) of this section, an insurer’s risk based capital shall be determined in accordance with the formula set forth in the RBC instructions.
(2)    By applying the factors in the manner set forth in the RBC instructions, the formula shall take into account and may adjust for the covariance between:
(i)    asset risk;
(ii)    credit risk;
(iii)    underwriting risk; and
(iv)    all other business risks and other relevant risks as set forth in the RBC instructions.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-307 - Authorized Control Level Event

(a)    An authorized control level event occurs when:
(1)    an insurer files an RBC report that indicates that the insurer has total adjusted capital that is:
(i)    greater than or equal to its mandatory control level RBC; and
(ii)    less than its authorized control level RBC;
(2)    the Commissioner notifies the insurer of an adjusted RBC report that indicates an event under item (1) of this subsection;
(3)    if an insurer requests a hearing to challenge an adjusted RBC report that indicates the event under item (1) of this subsection, the Commissioner notifies the insurer that the Commissioner, after a hearing, has rejected the insurer’s challenge;
(4)    the insurer fails to respond to a corrective order in a manner satisfactory to the Commissioner; or
(5)    if an insurer has requested a hearing to challenge a corrective order issued by the Commissioner:
(i)    the Commissioner notifies the insurer that the Commissioner, after a hearing, has rejected the insurer’s challenge or modified the corrective order; and
(ii)    the insurer fails to respond, in a manner satisfactory to the Commissioner, to the sustained or modified corrective order.
(b)    In the event of an authorized control level event, the Commissioner shall:
(1)    take any action required under § 4-306(b) of this subtitle for an insurer that experiences a regulatory action level event; or
(2)    if the Commissioner considers it to be in the best interest of the policyholders and creditors of the insurer and of the public, take any action that may be necessary to place the insurer under conservation, rehabilitation, or liquidation under Title 9 of this article.
(c)    (1)    The Commissioner shall have the rights, powers, and duties under Title 9 of this article needed to carry out the requirements of this section.
(2)    If the Commissioner takes any action under Title 9 of this article pursuant to an adjusted RBC report as provided in this section, the insurer shall be entitled to the protections afforded to insurers under Title 9 of this article with regard to summary proceedings.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-308 - Mandatory Control Level Event

(a)    A mandatory control level event occurs when:
(1)    an insurer files an RBC report that indicates that the insurer has total adjusted capital that is less than its mandatory control level RBC;
(2)    the Commissioner notifies the insurer of an adjusted RBC report that indicates an event under item (1) of this subsection; or
(3)    if an insurer requests a hearing to challenge an adjusted RBC report that indicates the event under item (1) of this subsection, the Commissioner notifies the insurer that the Commissioner, after a hearing, has rejected the insurer’s challenge.
(b)    (1)    In the case of a life insurer or fraternal benefit society, if a mandatory control level event occurs with respect to the life insurer or fraternal benefit society, the Commissioner shall take any action that may be necessary to place the life insurer or fraternal benefit society under conservation, rehabilitation, or liquidation under Title 9 of this article.
(2)    In the case of a property and casualty insurer, if a mandatory control level event occurs with respect to the property and casualty insurer, the Commissioner:
(i)    shall take any action that may be necessary to place the property and casualty insurer under conservation, rehabilitation, or liquidation under Title 9 of this article; or
(ii)    in the case of a property and casualty insurer that is not writing any new business and that is running off its existing business, may allow the property and casualty insurer to continue its run–off under the supervision of the Commissioner.
(3)    In the case of a health insurer, if a mandatory control level event occurs with respect to the health insurer, the Commissioner shall take any action that may be necessary to place the health insurer under conservation, rehabilitation, or liquidation under Title 9 of this article.
(c)    The Commissioner may delay action under subsection (b) of this section for up to 90 days after the occurrence of the mandatory control level event if the Commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90–day period.
(d)    (1)    The Commissioner shall have the rights, powers, and duties under Title 9 of this article needed to carry out the requirements of this section.
(2)    If the Commissioner takes any action under Title 9 of this article pursuant to an adjusted RBC report as provided in this section, the insurer shall be entitled to the protections afforded to insurers under Title 9 of this article with regard to summary proceedings.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-309 - Challenges by Insurer

(a)    An insurer may challenge any of the following determinations made or actions taken by the Commissioner under this subtitle:
(1)    notification to an insurer by the Commissioner of an adjusted RBC report;
(2)    notification to an insurer by the Commissioner that:
(i)    the insurer’s RBC plan or revised RBC plan is unsatisfactory; and
(ii)    the notification constitutes a regulatory action level event with respect to that insurer;
(3)    notification to an insurer by the Commissioner that:
(i)    the insurer has failed to adhere to its RBC plan or revised RBC plan; and
(ii)    the failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event with respect to the insurer in accordance with its RBC plan or revised RBC plan; or
(4)    notification to an insurer by the Commissioner of a corrective order with respect to the insurer.
(b)    (1)    At the request of an insurer, the Commissioner shall hold a confidential hearing on the record under § 2-213(a) of this article to determine the validity of a challenge by the insurer.
(2)    To request a hearing under this subsection, the insurer shall notify the Commissioner of its request within 5 days after the notification by the Commissioner under subsection (a) of this section.
(3)    On receipt of the insurer’s request for a hearing, the Commissioner shall hold a hearing within 30 days after the date of the insurer’s request.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-310 - Confidentiality of Rbc Reports and Plans

(a)    All RBC reports and RBC plans related to any domestic insurer or foreign insurer that are filed with the Commissioner:
(1)    constitute confidential commercial information that might be damaging to the insurer if made available to the insurer’s competitors;
(2)    shall be kept confidential by the Commissioner; and
(3)    may not be made public or be subject to subpoena, other than by the Commissioner and then only for the purpose of enforcement actions taken by the Commissioner under this subtitle or any other provision of this article.
(b)    The provisions of this section apply to:
(1)    RBC reports, to the extent the information in the RBC report is not required to be set forth in a publicly available annual statement schedule; and
(2)    RBC plans, including the results or report of any examination or analysis of an insurer performed in connection with any RBC plan and any corrective order issued by the Commissioner pursuant to the examination or analysis.
(c)    It is the public policy of the State that the comparison of an insurer’s total adjusted capital to any of its RBC levels:
(1)    is a regulatory tool that may indicate the need for possible corrective action with respect to the insurer; and
(2)    is not intended as a means to rank insurers generally.
(d)    It is the public policy of the State that the RBC instructions, RBC reports, adjusted RBC reports, RBC plans, and revised RBC plans:
(1)    are intended solely for use by the Commissioner in monitoring the solvency of insurers and the need for possible corrective action with respect to insurers; and
(2)    may not be used by the Commissioner for rate making or considered or introduced as evidence in any rate proceeding or used by the Commissioner to calculate or derive any elements of an appropriate premium level or rate of return for any line of insurance that an insurer or any affiliate is authorized to write.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-311 - Supplemental to Other Laws; Regulations; Exemptions

(a)    The provisions of this subtitle are supplemental to other laws of the State, and may not preclude or limit any other powers or duties of the Commissioner.
(b)    (1)    The Commissioner may adopt regulations to carry out this subtitle.
(2)    The Commissioner, in consultation with the Secretary of Health, shall adopt regulations that apply appropriate risk based capital standards to managed care organizations as defined under § 15–101(e) of the Health – General Article.
(c)    The Commissioner may exempt from the application of this subtitle any domestic property and casualty insurer that:
(1)    writes direct business only in the State;
(2)    writes direct annual premiums of $2,000,000 or less; and
(3)    assumes no reinsurance in excess of 5% of direct premiums written.
(d)    The Commissioner may exempt from the application of this Act any domestic health insurer that:
(1)    (i)    writes direct business only in the State;
(ii)    assumes no reinsurance in excess of 5% of direct premiums written; and
(iii)    writes direct annual premiums for comprehensive medical business of $2,000,000 or less; or
(2)    covers less than 2,000 lives if the health insurer is:
(i)    a nonprofit health service plan that provides coverage solely for dental services; or
(ii)    a dental plan organization.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-312 - Foreign Insurers

(a)    On written request of the Commissioner, a foreign insurer shall:
(1)    submit to the Commissioner an RBC report as of the end of the immediately preceding calendar year on the later of:
(i)    the date an RBC report would be required to be filed by a domestic insurer under this subtitle; or
(ii)    15 days after the request is received by the foreign insurer; and
(2)    promptly submit to the Commissioner a copy of any RBC plan or revised RBC plan that the insurer has filed with the insurance commissioner of any other state.
(b)    (1)    The Commissioner may require a foreign insurer to file an RBC plan with the Commissioner in the event of a company action level event, regulatory action level event, or authorized control level event with respect to the foreign insurer:
(i)    under the risk based capital statute of the foreign insurer’s state of domicile if the insurance commissioner of that state fails to require the foreign insurer to file an RBC plan in accordance with that state’s risk based capital statute; or
(ii)    under this subtitle if there is no risk based capital statute in force in the foreign insurer’s state of domicile.
(2)    If the foreign insurer fails to file an RBC plan with the Commissioner under this subsection, the Commissioner may order the foreign insurer to cease and desist from writing new insurance business in this State.
(c)    If a mandatory control level event occurs with respect to a foreign insurer and a domiciliary receiver has not been appointed with respect to that foreign insurer under the rehabilitation and liquidation statute applicable in the foreign insurer’s state of domicile, the Commissioner may file an action in the Circuit Court of Baltimore City under Title 9 of this article to seek the liquidation of any property of the foreign insurer found in the State.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 3 - Risk Based Capital Standards for Insurers › Section 4-314 - Effective Date of Notices

All notices by the Commissioner to an insurer that may result in regulatory action under this subtitle shall be effective:
(1)    if transmitted by registered or certified mail, on the date of mailing; or
(2)    if transmitted by any other means, on the date of receipt of notice by the insurer.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 4 - Disclosure Requirements for Insurers › Section 4-401 - Reporting Medical Malpractice Claims or Actions

(a)    This section applies to:
(1)    each insurer that provides professional liability insurance to:
(i)    a physician, nurse, dentist, podiatrist, optometrist, or chiropractor licensed under the Health Occupations Article; or
(ii)    a hospital licensed under the Health – General Article; and
(2)    each self–insured hospital.
(b)    An entity subject to this section shall report quarterly any claim or action for damages for personal injury if the claim or action:
(1)    is claimed to have been caused by an error, omission, or negligence in the performance of the insured’s professional services or is based on a claimed performance of the insured’s professional services without consent; and
(2)    resulted in:
(i)    a final judgment in any amount;
(ii)    a settlement in any amount; or
(iii)    a final disposition that does not result in payment on behalf of the insured.
(c)    A report required under this section shall contain the information required under § 4–405(b) of this subtitle.
(d)    A report required under this section shall be filed within 90 days after the end of the quarter during which an event described in subsection (b)(2)(i), (ii), or (iii) of this section occurred.
(e)    (1)    A report that relates to a physician shall be filed with the State Board of Physicians.
(2)    A report that relates to a hospital shall be filed with the Secretary of Health.
(3)    A report that relates to a nurse, dentist, podiatrist, optometrist, or chiropractor shall be filed with the appropriate licensing board for these health care providers.
(f)    (1)    Subject to paragraph (2) of this subsection, a report filed in accordance with this section shall be treated as a personal record under § 4–501(e) of the General Provisions Article.
(2)    Each report shall be released to the Maryland Health Care Commission.
(g)    An insurer that reports under this section or its agents or employees, the State Board of Physicians or its representatives, and any appropriate licensing authority that receives a report under this section shall have the immunity from liability described in § 5–701 of the Courts Article for any action taken by them under this section.
(h)    Failure to report to a person specified in subsection (e)(1), (2), or (3) of this section may result in the imposition by a circuit court of a civil penalty of up to $5,000.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 4 - Disclosure Requirements for Insurers › Section 4-402 - Inspection of Medical Files on Applicants and Claimants

(a)    Medical files on applicants and claimants that are compiled by insurers under policies of health insurance or life insurance shall be made available for inspection:
(1)    on request of the applicant or claimant;
(2)    on request of the agent of the applicant or claimant; or
(3)    on request of the applicant, to a physician of the applicant’s choice.
(b)    Information that is provided by a physician shall be made available on request:
(1)    after a period of 5 years after the date of the medical examination; or
(2)    at any time on written authorization of the physician.
(c)    An agent that requests to review the medical file of an applicant or claimant must have an authorization to review medical records signed by the applicant or claimant.
2023 Maryland Statutes › Insurance › Title 4 - General Requirements for Insurers › Subtitle 4 - Disclosure Requirements for Insurers › Section 4-404 - Disclosure of Medical Examination Results by Life Insurer

If a life insurer denies a policy of life insurance to an applicant, the life insurer shall disclose the results of any medical examination administered to determine the applicant’s insurability to a physician of the applicant’s choice if the applicant so requests.