reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 1 - Organization of Administration; General Powers and Duties of Commissioner › Section 2-115 - Adoption of Regulations in Emergency

(a)    The Commissioner shall adopt regulations that may be applied when:
(1)    the Governor has declared a state of emergency for the State or an area within the State under § 14–107 of the Public Safety Article;
(2)    the President of the United States has issued a major disaster or emergency declaration for the State or an area within the State under the federal Stafford Act; or
(3)    a national or public health emergency, that within the Commissioner’s discretion affects the State:
(i)    is issued:
1.    by the President of the United States under § 201, § 202(d), or § 301 of the federal National Emergencies Act; or
2.    by the Secretary of Health and Human Services under the federal Public Health Service Act; and
(ii)    is based on a serious threat to health resulting from the existence of a deadly agent as defined in § 14–3A–01 of the Public Safety Article.
(b)    The regulations may:
(1)    apply to any person regulated by the Commissioner under this article or Title 19, Subtitle 7 of the Health – General Article; and
(2)    address:
(i)    submission of claims or proof of loss;
(ii)    grace periods for payment of premiums and performance of other duties by insureds;
(iii)    temporary postponement of cancellations, nonrenewals, premium increases, or policy modifications;
(iv)    procedures for obtaining nonelective health care services;
(v)    time restrictions for filling or refilling prescription drugs;
(vi)    time frames applicable to an action by the Commissioner under this article; and
(vii)    any other activity necessary to protect the residents of the State.
(c)    (1)    To activate a regulation adopted under this section, the Commissioner shall issue a bulletin specifying:
(i)    that the regulation is activated;
(ii)    the line or lines of business to which the regulation applies;
(iii)    the geographic areas to which the regulation applies; and
(iv)    the period of time for which the regulation applies.
(2)    (i)    Except as provided under subparagraph (ii) of this paragraph, a regulation activated under paragraph (1) of this subsection may not apply beyond the duration of, or the geographical area included within, the Governor’s or President’s declaration of a state of emergency or disaster.
(ii)    A regulation activated under paragraph (1) of this subsection in response to a national or public health emergency described in subsection (a)(3) of this section may not apply beyond the duration of the President’s or Secretary of Health and Human Services’ declaration of a national or public health emergency.
(3)    The Commissioner:
(i)    shall provide a copy of the bulletin to the emergency contact designated by the person subject to the bulletin; and
(ii)    may post a copy of the bulletin on the Administration’s website.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 1 - Organization of Administration; General Powers and Duties of Commissioner › Section 2-116 - Delivery of Notice by Electronic Means -- Presumption of Receipt

(a)    The Commissioner may send a notice or other communication by electronic means if:
(1)    the Commissioner is required to deliver, give, mail, serve, or otherwise provide the notice or other communication in writing;
(2)    the recipient has provided an e–mail address to the Commissioner to receive notices or other communications;
(3)    the notice or other communication is sent to the e–mail address provided by the recipient; and
(4)    the Commissioner maintains proof that the notice was sent to the recipient at the recipient’s e–mail address.
(b)    If a person is required to send the Commissioner a notice or other communication and the person is not licensed, certified, or otherwise regulated by the Commissioner:
(1)    the person may send the notice or other communication by electronic means approved by the Commissioner; and
(2)    the Commissioner may not require the person to send the notice or other communication by electronic means.
(c)    The Commissioner may require a person who is licensed, certified, or otherwise regulated by the Commissioner to send a notice or other communication by electronic means.
(d)    Subject to the provisions of the Maryland Uniform Electronic Transactions Act, a notice or other communication sent in accordance with this section shall be presumed to have been received in the ordinary course.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-201 - Enforcement of Article

(a)    The Commissioner may bring an action in a court of competent jurisdiction to enforce this article or an order issued by the Commissioner under this article.
(b)    The Commissioner shall be represented by the Attorney General, an assistant Attorney General, or another attorney at law designated by the Attorney General.
(c)    Whenever the Commissioner believes that a person has committed a violation of this article for which criminal prosecution is provided, the Commissioner shall refer the alleged violation to:
(1)    the State’s Attorney for the county where the violation allegedly occurred or the person resides; or
(2)    the Attorney General, if the alleged violation is statewide and not local in nature.
(d)    (1)    The Commissioner may investigate any complaint that alleges that a fraudulent claim has been submitted to an insurer.
(2)    If the Commissioner finds that a complaint has merit, the Commissioner may refer the complaint to an appropriate law enforcement authority, including the Attorney General, for appropriate action.
(e)    The Commissioner may enforce the provisions of this article, and may impose any penalty or remedy authorized by this article, against a person that is under investigation for or charged with a violation of this article if:
(1)    the person’s certificate of authority, certificate of qualification, license, or registration is no longer in effect; and
(2)    the alleged violation occurred no more than 5 years before surrender or lapse of the certificate, license, or registration.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-202 - Discrimination in Underwriting and Rate-Setting Practices

(a)    (1)    Notwithstanding any other law and except as provided in paragraph (2) of this subsection, the Commissioner has exclusive jurisdiction to enforce by administrative action the laws of the State that relate to the underwriting or rate–setting practices of an insurer.
(2)    The Commission on Civil Rights has concurrent jurisdiction with the Commissioner over alleged discrimination on the basis of race, creed, color, or national origin.
(b)    When the Commissioner has exclusive jurisdiction under subsection (a) of this section, the Commission on Civil Rights may:
(1)    refer complaints about discriminatory practices to the Commissioner;
(2)    appear before the Commissioner as a party at a hearing about discriminatory practices;
(3)    make recommendations about discriminatory practices to the Commissioner;
(4)    represent a complainant in proceedings under § 2–210 of this subtitle; and
(5)    appeal as a party aggrieved by an order or decision of the Commissioner under § 2–215 of this subtitle or § 11–503 of this article.
(c)    The Commissioner shall notify the Commission on Civil Rights of any hearing scheduled on a complaint about alleged discriminatory practices.
(d)    On request of the Commission on Civil Rights and unless the complainant objects, the Commissioner shall give the Commission on Civil Rights all information about any complaint about alleged discriminatory practices received by the Commissioner.
(e)    The Commissioner and the Commission on Civil Rights shall set guidelines for determining when allegations in a complaint about alleged discriminatory practices are sufficient to warrant a hearing.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-204 - Orders and Notices

(a)    An order or notice of the Commissioner must be in writing and signed by the Commissioner or an individual authorized by the Commissioner.
(b)    (1)    An order of the Commissioner shall state:
(i)    its effective date;
(ii)    its purpose;
(iii)    the grounds on which it is based; and
(iv)    the provisions of this article under which action is or proposed to be taken.
(2)    Failure to designate a particular provision of this article in accordance with paragraph (1)(iv) of this subsection does not deprive the Commissioner of the right to rely on that provision.
(c)    An order or notice may be served on a person by:
(1)    mailing it to the person at the last known principal place of business of the person, as listed in the records of the Commissioner;
(2)    electronic means in accordance with § 2–116 of this title; or
(3)    otherwise delivering it to the person.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-205 - Analysis or Examinations of Insurers, Rating Organizations, and Health Maintenance Organizations

(a)    In this section, “analysis” means a process by which the Commissioner collects and analyzes information from filed schedules, surveys, required reports specified in subsection (b) of this section, and other sources in order to:
(1)    develop an understanding of the affairs, transactions, accounts, records, assets, and financial condition of the entities specified in subsection (b) of this section; or
(2)    identify or investigate patterns or practices of the entities specified in subsection (b) of this section.
(b)    (1)    Whenever the Commissioner considers it advisable, the Commissioner shall conduct an analysis or examine the affairs, transactions, accounts, records, assets, and financial condition of each:
(i)    authorized insurer;
(ii)    management company of an authorized insurer;
(iii)    subsidiary owned or controlled by an authorized insurer;
(iv)    rating organization; or
(v)    authorized health maintenance organization.
(2)    The Commissioner shall examine each domestic insurer and health maintenance organization at least once every 5 years.
(c)    The Commissioner shall examine the affairs, transactions, accounts, records, and assets of:
(1)    each insurer and each health maintenance organization that applies for an original certificate of authority to do business in the State; and
(2)    each rating organization that applies for a license to do business in the State.
(d)    When examining a reciprocal insurer, the Commissioner may examine the attorney in fact of the reciprocal insurer to the extent that the transactions of the attorney in fact relate to the reciprocal insurer.
(e)    The Commissioner may limit the examination of an alien insurer to its insurance transactions and affairs in the United States.
(f)    Instead of conducting an examination, the Commissioner may accept a full report, certified by the insurance supervisory official of another state, of the most recent examination of a foreign insurer or health maintenance organization, alien insurer or health maintenance organization, or an out–of–state rating organization.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-206 - Examinations of Insurance Producers, Managers, and Others

When advisable to determine compliance with this article, the Commissioner may examine the accounts, records, documents, and transactions that relate to the insurance affairs or proposed insurance affairs of:
(1)    an insurance producer, surplus lines broker, general agent, adjuster, public adjuster, or adviser;
(2)    a person with the exclusive or dominant right under a contract to manage or control an insurer;
(3)    a person that, for the purpose of controlling the management of a domestic insurer, holds the shares of voting stock or policyholder proxies of the domestic insurer as voting trustee or otherwise; or
(4)    a person engaged in, proposing to engage in, or helping in the promotion or formation of:
(i)    a domestic insurer or insurance holding corporation; or
(ii)    a corporation to finance a domestic insurer or the production of its business.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-207 - Conduct of Examinations

(a)    (1)    The Commissioner shall conduct an examination of an insurer, health maintenance organization, or private review agent at:
(i)    the home office of a domestic insurer, foreign insurer, health maintenance organization, or private review agent;
(ii)    the United States branch office of an alien insurer, health maintenance organization, or private review agent; or
(iii)    a branch or agency office of the insurer, health maintenance organization, or private review agent.
(2)    The Commissioner shall conduct an examination of a person other than an insurer, health maintenance organization, or private review agent at:
(i)    the place of business of the person; or
(ii)    any place where records of the person are kept.
(b)    Each person that is examined and its officers, employees, agents, and representatives shall:
(1)    produce and make freely available to the Commissioner or an examiner the accounts, records, documents, files, information, assets, and matters that are in the possession or control of the person and relate to the subject of the examination; and
(2)    otherwise help the examination to the extent reasonably possible.
(c)    (1)    At the expense of the person being examined, the Commissioner may retain an actuary, accountant, or other expert, who is not otherwise a part of the staff of the Administration, if reasonably necessary to conduct an examination under this article.
(2)    The actuary, accountant, or other expert may rewrite, post, or balance the accounts of the person being examined.
(d)    (1)    If the Commissioner considers it necessary to value real estate involved in an examination, the Commissioner may request in writing that the person being examined appoint one or more competent appraisers, approved by the Commissioner, to appraise the real estate.
(2)    If the person does not appoint an appraiser within 10 days after the request was delivered to the person, the Commissioner may appoint an appraiser.
(3)    The appraisal shall be made promptly, and a copy of the appraisal report shall be provided to the Commissioner.
(4)    The person being examined shall pay the reasonable expense of the appraisal.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-208 - Expense of Examinations. [Effective Until May 18, 2025]

The expense incurred in an examination made under § 2–205 of this subtitle, § 2–206 of this subtitle for surplus lines brokers and insurance holding corporations, § 23–207 of this article for premium finance companies, § 15–10B–19 of this article for private review agents, § 15–10B–20 of this article, or § 14–610 of this article for discount medical plan organizations and discount drug plan organizations shall be paid by the person examined in the following manner:
(1)    the person examined shall pay to the Commissioner the travel expenses, a living expense allowance, and a per diem as compensation for examiners, actuaries, and typists:
(i)    to the extent incurred for the examination; and
(ii)    at reasonable rates set by the Commissioner;
(2)    the Commissioner may present a detailed account of expenses incurred to the person examined periodically during the examination or at the end of the examination, as the Commissioner considers proper; and
(3)    a person may not pay and an examiner may not accept any compensation for an examination in addition to the compensation under item (1) of this section.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-209.1 - Supervisory College

(a)    In this section, “supervisory college” means a forum for cooperation and communication among the involved state, federal, and international regulators established for the fundamental purpose of facilitating the effectiveness of supervision of entities that belong to an insurance holding company system.
(b)    (1)    With respect to any insurer registered under Title 7, Subtitle 6 of this article, the Commissioner may participate in a supervisory college for any domestic insurer that is part of an insurance holding company system with international operations in order to determine compliance by the insurer with this article.
(2)    The powers of the Commissioner with respect to a supervisory college include:
(i)    initiating the establishment of a supervisory college;
(ii)    determining the membership and participation of other supervisors in the supervisory college;
(iii)    determining the functions of the supervisory college and the role of other state, federal, and international regulators;
(iv)    coordinating the ongoing activities of the supervisory college, including planning meetings, supervisory activities, and processes for sharing information; and
(v)    establishing a crisis management plan on the occurrence of any activity, circumstance, event, or series of events involving one or more affiliates of an insurer that has, or is likely to have, a material adverse effect on the financial condition or liquidity of the insurer or its insurance holding company system as a whole.
(3)    (i)    Each insurer subject to registration under § 7–603 of this article shall be liable for and shall pay the reasonable expenses of the Commissioner’s participation in a supervisory college, including travel expenses.
(ii)    A supervisory college may be convened as either a temporary or a permanent forum for communication and cooperation among the regulators charged with supervising an insurer or its affiliates, and the Commissioner may establish a regular assessment to an insurer for the payment of expenses under subparagraph (i) of this paragraph.
(4)    (i)    In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management, and governance processes of an insurer or its affiliates, and as part of the examination of insurers under § 7–605 of this article, the Commissioner may participate in a supervisory college with other regulators charged with supervising an insurer or its affiliates, including other state, federal, and international regulatory agencies.
(ii)    Nothing in this section may be construed to delegate to the supervisory college any of the authority of the Commissioner to regulate the insurer or the activities of its affiliates within the State.
(c)    The Commissioner may enter into agreements providing the basis for cooperation between the Commissioner and other state, federal, and international regulatory agencies and the activities of the supervisory college in accordance with § 2–209(h) of this subtitle.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-210 - Hearings

(a)    (1)    The Commissioner may hold hearings that the Commissioner considers necessary for any purpose under this article.
(2)    The Commissioner shall hold a hearing:
(i)    if required by any provision of this article; or
(ii)    except as otherwise provided in this article, on written demand by a person aggrieved by any act of, threatened act of, or failure to act by the Commissioner or by any report, regulation, or order of the Commissioner, except an order to hold a hearing or an order resulting from a hearing.
(b)    (1)    A demand for a hearing shall state the grounds for the relief to be demanded at the hearing.
(2)    Within 30 consecutive days after receiving a demand for a hearing, the Commissioner shall:
(i)    grant and, unless postponed by mutual consent of the parties, hold the hearing; or
(ii)    issue an order refusing the hearing.
(3)    If the Commissioner does not grant or refuse a hearing within the 30–day period, the hearing is deemed to have been refused.
(c)    (1)    Except as provided in paragraph (2) of this subsection, a hearing held under this section shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article (Administrative Procedure Act – Contested Cases).
(2)    A hearing held under this section is not subject to § 10–216 of the State Government Article.
(d)    The Commissioner may delegate to the Deputy Commissioner, an associate deputy commissioner, an associate commissioner, or one other Administration employee who is designated by the Commissioner and admitted to the practice of law in the State the responsibility for holding a hearing under this section or § 4–114 of this article.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-211 - Notice of Hearing

(a)    (1)    At least 10 days before a hearing, the Commissioner shall give notice of the hearing:
(i)    to each person specified in the provision of this article under which the hearing is held; or
(ii)    if the provision under which the hearing is held does not specify the persons to be notified, to each person directly affected by the hearing.
(2)    If not all persons entitled to notice of the hearing are known, the Commissioner may perfect notice by publication in a newspaper of general circulation in the State at least 10 days before the hearing.
(b)    The notice of the hearing shall state:
(1)    the time and place of the hearing; and
(2)    the matters to be considered at the hearing.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-212 - Stay of Order or Proposed Action

(a)    (1)    Except as provided in paragraph (2) of this subsection, a demand for a hearing stays an order of the Commissioner pending the hearing and an order resulting from it if the Commissioner receives the demand:
(i)    before the effective date of the order; or
(ii)    within 10 days after the order is served.
(2)    Paragraph (1) of this subsection does not apply to an action taken or proposed under an order:
(i)    resulting from a hearing;
(ii)    resulting from a final decision of the Insurance Commissioner on a complaint in an emergency case under § 15-10A-04 of this article; or
(iii)    based on impairment of assets or unsound financial condition of an insurer.
(b)    If the Commissioner does not grant a written request for a stay, the aggrieved person may apply to the Circuit Court for Baltimore City for a stay of the proposed action of the Commissioner.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 2 - Enforcement › Section 2-214 - Order Resulting From Hearing

(a)    In holding a hearing under this subtitle the Commissioner sits in a quasi-judicial capacity.
(b)    (1)    Within 30 days after a hearing or any rehearing or reargument of matters involved in the hearing, the Commissioner shall issue an order that covers matters involved in the hearing and in any rehearing or reargument.
(2)    The Commissioner shall serve a copy of the order on the same persons that were served notice of the hearing.
(c)    The order shall contain:
(1)    a concise statement of the facts found by the Commissioner;
(2)    the Commissioner’s conclusions from the facts; and
(3)    the information required by § 2-204(b) of this subtitle.
(d)    The order may:
(1)    affirm, modify, or nullify an action already taken; or
(2)    constitute the taking of new action within the scope of the notice of the hearing.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 3 - Consumer Education and Advocacy Program › Section 2-303 - Purposes of Program

The purposes of the Program include:
(1)    providing information and helping consumers with the procedures for filing a complaint with the Commissioner against any person regulated by this article;
(2)    on request, giving information about an insurer to the extent that the information lawfully is disclosable; and
(3)    developing an information and assistance system to provide information about and to help consumers with:
(i)    personal insurance coverages, including health insurance and life insurance coverages;
(ii)    underwriting practices;
(iii)    general rating concepts;
(iv)    claim procedures of insurers; and
(v)    any other relevant services.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 3 - Consumer Education and Advocacy Program › Section 2-303.1 - Duties of the Administration

(a)    The Administration shall serve as the single point of entry for consumers to access any and all information regarding health insurance and the delivery of health care as it relates to health insurance, including information prepared or collected by:
(1)    the Maryland Department of Health;
(2)    the Maryland Health Care Commission;
(3)    the Health Services Cost Review Commission;
(4)    the Department of Aging; and
(5)    the Health Education and Advocacy Unit of the Attorney General’s office.
(b)    (1)    The Administration, in cooperation with the entities listed in subsection (a) of this section and any other person it deems appropriate, shall promote the availability of the information.
(2)    The Maryland Health Care Commission shall assist the Administration in presenting the information in a format that is easily understandable for consumers.
(c)    Implementation of this section by the Administration shall be funded through the Health Care Regulatory Fund established under § 2–112.3 of this title.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 3 - Consumer Education and Advocacy Program › Section 2-303.2 - Comparison Guide of Medical Professional Liability Insurance Premiums

(a)    The Administration shall prepare annually a comparison guide of medical professional liability insurance premiums.
(b)    The comparison guide shall:
(1)    list each insurer authorized to provide medical professional liability insurance in the State;
(2)    include, for each specialty and territory, the base premium charged by an insurer for physicians with policy limits of $1,000,000 and $3,000,000; and
(3)    include the base premium charged by an insurer for a:
(i)    hospital;
(ii)    medical day care center;
(iii)    hospice care program;
(iv)    assisted living program; and
(v)    freestanding ambulatory care facility as defined in § 19–3B–01 of the Health – General Article.
(c)    The Administration shall publish the comparison guide required under subsection (a) of this section on its Web site and in printed form.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 3 - Consumer Education and Advocacy Program › Section 2-304 - Staff

(a)    To carry out the Program, the Commissioner may employ a staff in accordance with the State budget.
(b)    The Commissioner may designate a member of the staff of the Program to represent the interests of consumers in any Administration proceeding that is open to the public, including:
(1)    an informational hearing; and
(2)    a hearing or review of insurance rates or forms.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 4 - Insurance Fraud Division › Section 2-401 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Fraud Division” means the Insurance Fraud Division in the Administration.
(c)    “Insurance fraud” means:
(1)    a violation of Title 27, Subtitle 4 of this article;
(2)    theft, as set out in §§ 7–101 through 7–104 of the Criminal Law Article:
(i)    from a person regulated under this article; or
(ii)    by a person regulated under this article or an officer, director, agent, or employee of a person regulated under this article;
(3)    a violation of § 9–1106 of the Labor and Employment Article; or
(4)    any other fraudulent activity that is committed by or against a person regulated under this article and is a violation of:
(i)    Title 1, Subtitle 3 of the Agriculture Article;
(ii)    Title 19, Subtitle 2 or Subtitle 3 of the Business Regulation Article;
(iii)    Title 14, Subtitle 29, § 11–810, or § 14–1317 of the Commercial Law Article;
(iv)    the Criminal Law Article other than Title 8, Subtitle 2, Part II or § 10–614;
(v)    Title 12, Subtitle 9 of the Financial Institutions Article;
(vi)    § 14–127 of the Real Property Article;
(vii)    § 6–301 of the Alcoholic Beverages Article;
(viii)    § 109 of the Code of Public Local Laws of Caroline County;
(ix)    § 4–103 of the Code of Public Local Laws of Carroll County; or
(x)    § 8A–1 of the Code of Public Local Laws of Talbot County.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 4 - Insurance Fraud Division › Section 2-403 - Associate Commissioner of Fraud Division

(a)    The head of the Fraud Division is an Associate Commissioner of Insurance.
(b)    (1)    The Associate Commissioner of the Fraud Division shall be appointed by the Commissioner with the approval of the Governor.
(2)    The Associate Commissioner is an employee of the Administration.
(3)    The Associate Commissioner reports directly to and is under the direct supervision of the Commissioner.
(c)    The Associate Commissioner of the Fraud Division is unclassified and is entitled to annual compensation as provided in the State budget.
(d)    The Associate Commissioner of the Fraud Division is responsible for the operation of the Fraud Division and the exercise of all authority granted to the Fraud Division under this article.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 4 - Insurance Fraud Division › Section 2-405 - General Powers and Duties of Fraud Division

The Fraud Division:
(1)    has the authority to investigate each person suspected of engaging in insurance fraud;
(2)    if appropriate after an investigation:
(i)    shall refer suspected cases of insurance fraud to the Office of the Attorney General or appropriate local State’s Attorney to prosecute the person criminally for insurance fraud;
(ii)    shall notify the appropriate professional licensing board or disciplinary body of evidence of insurance fraud that involves professionals;
(iii)    shall notify the appropriate professional licensing board of evidence of gross overutilization of health care services;
(iv)    shall notify the Workers’ Compensation Commission of suspected cases of insurance fraud referred to the Office of the Attorney General or appropriate local State’s Attorney under subparagraph (i) of this paragraph that involve the payment of compensation, fees, or expenses under the Workers’ Compensation Law; and
(v)    shall assist local and State law enforcement agencies in the prosecution of automobile theft;
(3)    shall compile and abstract information that includes the number of confirmed acts of insurance fraud and the type of acts of insurance fraud;
(4)    in exercising its authority under this subtitle, shall cooperate with the Department of State Police, Office of the Attorney General, local State’s Attorney in the jurisdiction in which the alleged acts of insurance fraud took place, and appropriate federal and local law enforcement authorities;
(5)    shall operate or provide for a toll–free insurance fraud hot line to receive and record information about alleged acts of insurance fraud;
(6)    in cooperation with the Office of the Attorney General and Department of State Police, shall conduct public outreach and awareness programs on the costs of insurance fraud to the public; and
(7)    shall investigate allegations of civil fraud and, if appropriate after investigation, impose administrative penalties and order restitution in accordance with § 27–408 of this article.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 4 - Insurance Fraud Division › Section 2-406 - Civil and Criminal Actions

(a)    Notwithstanding any other provision of law, a criminal prosecution for engaging in insurance fraud may be brought in any county in the State in which:
(1)    an element of the insurance fraud was committed;
(2)    the purported insured loss occurred;
(3)    the insurance policy in question provides coverage;
(4)    the insurer or an agent of the insurer received a false or misleading statement or document;
(5)    the defendant or respondent resides; or
(6)    money or other benefit was received as a result of the insurance fraud.
(b)    For a civil fraud violation, the Commissioner may impose administrative penalties and order restitution under § 27–408(c) of this article when one or more of the occurrences listed in subsection (a) of this section takes place in the State.
(c)    If insurance fraud is determined to have occurred in any of the locations listed in subsection (a) of this section, a criminal or civil fraud action for all related violations may be joined in the same action.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 5 - Insurance Regulation Assessment › Section 2-501 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Assessment” means an assessment that, subject to § 2-505(c)(3) of this subtitle, equals 60% of the Administration’s approved annual budget appropriation under this article.
(c)    “Fund” means the Insurance Regulation Fund established under § 2-505 of this subtitle.
(d)    (1)    “Health insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of health insurance.
(2)    “Health insurer” includes:
(i)    a health maintenance organization operating under a certificate of authority issued by the Commissioner under Title 19, Subtitle 7 of the Health - General Article;
(ii)    a nonprofit health service plan operating under Title 14, Subtitle 1 of this article; and
(iii)    a dental plan operating under Title 14, Subtitle 4 of this article.
(e)    “Health insurer assessment portion” means 40% of the assessment.
(f)    (1)    “Insurer” means an insurer or other entity authorized to engage in the insurance business in the State under a certificate of authority issued by the Commissioner.
(2)    “Insurer” includes:
(i)    a health maintenance organization operating under a certificate of authority issued by the Commissioner under Title 19, Subtitle 7 of the Health - General Article;
(ii)    a nonprofit health service plan operating under Title 14, Subtitle 1 of this article;
(iii)    a dental plan operating under Title 14, Subtitle 4 of this article; and
(iv)    the Maryland Automobile Insurance Fund.
(g)    “Life insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of life insurance.
(h)    “Life insurer assessment portion” means 26% of the assessment.
(i)    “Multiple type insurer” means an insurer that engages in more than one of the following types of insurance:
(1)    life;
(2)    health; or
(3)    property and casualty.
(j)    (1)    “Premium” has the meaning stated in § 1-101 of this article to the extent it is allocable to this State.
(2)    “Premium” includes any amounts paid to a health maintenance organization as compensation on a predetermined basis for providing services to members and subscribers as specified in Title 19, Subtitle 7 of the Health - General Article to the extent it is allocable to this State.
(k)    (1)    “Property and casualty insurer” means an insurer that holds a certificate of authority issued by the Commissioner to engage in the business of property and casualty insurance.
(2)    “Property and casualty insurer” includes the Maryland Automobile Insurance Fund.
(l)    “Property and casualty insurer assessment portion” means 34% of the assessment.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 5 - Insurance Regulation Assessment › Section 2-502 - Annual Assessment Fee

(a)    The Commissioner shall collect an annual assessment fee from each insurer as provided in subsection (b) of this section.
(b)    The assessment fee shall be calculated as follows:
(1)    for each health insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the health insurer in the prior calendar year by the total amount of gross direct premium written by all health insurers in the prior calendar year, multiplied by the health insurer assessment portion;
(2)    for each life insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the life insurer in the prior calendar year by the total amount of gross direct premium written by all life insurers in the prior calendar year, multiplied by the life insurer assessment portion;
(3)    for each property and casualty insurer, the assessment fee is the product of the fraction obtained by dividing the gross direct premium written by the property and casualty insurer in the prior calendar year by the total amount of gross direct premiums written by all property and casualty insurers in the prior calendar year, multiplied by the property and casualty insurer assessment portion; and
(4)    for each domestic reinsurer subject to § 4–115(b)(2)(ii) and (c)(3) of this article, the assessment fee is the average of the assessment fee paid by the 100 property and casualty insurers with the highest gross direct written premium in the prior calendar year.
(c)    For the purpose of calculating the assessment fee in subsection (b) of this section, a multiple type insurer shall be considered either a health insurer, a life insurer, or a property and casualty insurer based on the majority of premium type written.
(d)    Notwithstanding any other provision of this subtitle, the minimum assessment shall be $300 for each authorized insurer.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 5 - Insurance Regulation Assessment › Section 2-503 - Collection, Payment and Disposition of Fee

(a)    The Commissioner shall collect the annual assessment fee from each insurer as calculated in § 2-502 of this subtitle.
(b)    The assessment fee collected under this section is:
(1)    in addition to any penalties or premium tax imposed under this article; and
(2)    due and payable to the Commissioner on or before a date determined by the Commissioner each year.
(c)    (1)    Failure by an insurer to pay the assessment fee on or before the due date shall subject the insurer to the provisions of §§ 4-113 and 4-114 of this article.
(2)    In addition to paragraph (1) of this subsection, an assessment fee not paid on or before the due date may be subject to a penalty of 5% and interest at the rate determined under § 13-701(b)(1) of the Tax - General Article from the due date until payment is made to the Commissioner.
(3)    If an additional amount is found to be due after the assessment fee has been paid to the Commissioner, the additional amount is subject to interest at 6% from the due date until payment is made to the Commissioner.
(d)    The total amount of the assessment fee collected by the Commissioner shall be deposited in the Fund.
(e)    This section does not affect any requirement otherwise established by law for the payment of premium taxes by an insurer.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 5 - Insurance Regulation Assessment › Section 2-504 - Fee in Lieu of Other Fees; Adjusted Premiums

(a)    The assessment fee imposed on insurers under this subtitle is in lieu of any life insurance valuation fees and a reduction in specified insurance producer fees that the Commissioner had previously charged and collected under § 2-112 of this title.
(b)    In determining adjusted premiums subject to the assessment fee, the Commissioner may use the premiums as stated in the report required under § 2-506(a) of this subtitle.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 5 - Insurance Regulation Assessment › Section 2-505 - Insurance Regulation Fund

(a)    There is an Insurance Regulation Fund that consists of:
(1)    all revenue received through the imposition and collection of the assessment fee under this subtitle;
(2)    all revenue received through the imposition and collection of the fees set forth in § 2–112 of this title;
(3)    all revenue received through the imposition and collection of the fraud prevention fee under Title 6, Subtitle 2 of this article;
(4)    all revenue received through the collection of examination expenses under § 2–208 of this title;
(5)    except as provided in § 2–114(a) of this title, all other fees received through the imposition and collection of fees set forth in this article; and
(6)    income from investments that the State Treasurer makes for the Fund.
(b)    The purpose of the Fund is to pay all the costs and expenses incurred by the Administration that are related to its responsibilities to regulate the insurance activities of all insurers that engage in the insurance business in this State.
(c)    (1)    All the costs and expenses of the Administration shall be included in the State budget.
(2)    Any expenditures from the Fund to cover costs and expenses of the Administration may only be made:
(i)    with an appropriation from the Fund approved by the General Assembly in the annual State budget; or
(ii)    by the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article.
(3)    (i)    1.    Subject to subsubparagraph 2 of this subparagraph, if, in any fiscal year, the amount of revenue collected by the Commissioner and deposited into the Fund exceeds 105% of the actual appropriations for the Administration, the excess amount shall be carried forward within the Fund.
2.    The assessment fee imposed under this subtitle shall be adjusted to maintain the Fund at a level that does not exceed 105% of the Administration’s approved annual budget.
(ii)    If, in any given fiscal year, the amount of revenue collected by the Commissioner and deposited into the Fund is insufficient to cover the expenditures of the Administration because of an unforeseen emergency and expenditures are made in accordance with the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article, an additional assessment for the expenditures may be made.
(d)    (1)    The State Treasurer is the custodian of the Fund.
(2)    The State Treasurer shall deposit payments received from the Commissioner into the Fund.
(e)    (1)    The Fund is a continuing, nonlapsing fund and is not subject to § 7–302 of the State Finance and Procurement Article, and may not be deemed a part of the General Fund of the State.
(2)    No part of the Fund may revert or be credited to:
(i)    the General Fund of the State; or
(ii)    a special fund of the State, unless otherwise provided by law.
2023 Maryland Statutes › Insurance › Title 2 - Maryland Insurance Administration › Subtitle 5 - Insurance Regulation Assessment › Section 2-506 - Annual Report of Premiums; Alternative Statement

(a)    (1)    On or before March 1 of each year, each insurer subject to this subtitle shall file with the Commissioner a report of the new and renewal gross direct premiums.
(2)    The report shall be filed in a manner and contain the information required by the Commissioner.
(b)    If an insurer files its annual statement on or before March 1, and the information required under subsection (a) of this section is included in that annual statement, the insurer is not required to file a report under subsection (a) of this section.
2023 Maryland Statutes › Insurance › Title 3 - Kinds of Insurers › Subtitle 1 - Stock Insurers and Mutual Insurers › Section 3-102 - Applicability of General Corporation Statutes and Insurance Article

(a)    Except as otherwise specifically provided in this article, each domestic insurer shall comply with the applicable provisions of the Corporations and Associations Article that relate to formation, powers vested in, and duties of corporations formed under the general provisions of the Corporations and Associations Article.
(b)    Unless a class of corporations to which this subtitle applies is specifically included in a statute passed after December 31, 1963, a domestic insurer is only subject to regulation under this article.
2023 Maryland Statutes › Insurance › Title 3 - Kinds of Insurers › Subtitle 1 - Stock Insurers and Mutual Insurers › Section 3-103 - Formation of Domestic Insurers

(a)    A domestic insurer may be formed for insurance purposes under Title 2 of the Corporations and Associations Article.
(b)    A domestic insurer may be formed either as a mutual insurer or stock insurer, as stated in its articles of incorporation.
(c)    (1)    Each policyholder of a domestic mutual insurer, other than a holder of a reinsurance contract, is a member of the mutual insurer, with each right and obligation of membership.
(2)    Each policy shall state the provisions of paragraph (1) of this subsection.
(3)    Any person, government, governmental unit, state, or political subdivision may be a member of a domestic, foreign, or alien mutual insurer.
(4)    An officer, stockholder, trustee, or legal representative of a member:
(i)    may be recognized as acting in a representative capacity for or on behalf of the member for the purpose of the membership; and
(ii)    is not personally liable on the insurance contract for acting in that representative capacity.
(5)    A Maryland corporation may participate as a member of a mutual insurer incidentally to the purpose for which the corporation is organized.
(d)    (1)    Each member of a domestic mutual insurer is entitled to one vote, or to the number of votes the bylaws provide, based on:
(i)    the insurance in force;
(ii)    the number of policies held; or
(iii)    the amount of premium paid.
(2)    Only the policyholder under a group policy is a member of the mutual insurer and is entitled to vote at the meetings of the mutual insurer.
(e)    (1)    Except as provided in paragraph (2) of this subsection, the board of directors of a domestic insurer shall have at least nine members.
(2)    The board of directors of a domestic financial guaranty insurance company that is prohibited from issuing new policies of financial guaranty insurance shall have at least five members.
2023 Maryland Statutes › Insurance › Title 3 - Kinds of Insurers › Subtitle 1 - Stock Insurers and Mutual Insurers › Section 3-104 - Approval of Articles of Incorporation and Charter

(a)    The articles of incorporation of each domestic insurer and any amendment to its charter must be submitted to the Commissioner for examination and approval before they may be accepted for record by the Department of Assessments and Taxation.
(b)    Articles of incorporation and articles of amendment are not effective unless the Commissioner, by written endorsement on them, has approved the articles as being in accordance with the insurance laws of the State.