reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 2 - Agricultural Group Policies › Section 25-202 - Employers Subject to Subtitle

This subtitle applies to the following employers of agricultural labor, some or all of whom may not be required to carry workers’ compensation insurance:
(1)    members of a nonprofit agricultural association; and
(2)    members of or stockholders in a nonprofit cooperative agricultural marketing association of producers.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 3 - Group Self-Insurance for Workers' Compensation › Section 25-301 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Administrator” means a person engaged by a workers’ compensation self-insurance group to carry out the policies established by the self-insurance group and to provide management of the self-insurance group.
(c)    “Insolvent self-insurance group” means a self-insurance group in which each individual member of the group is unable to meet the member’s debts as they mature in the ordinary course of business, as determined by the Commissioner.
(d)    “Self-insurance agreement” means the partnership arrangement between the members of a self-insurance group that defines the rights, obligations, and liabilities of the members of the self-insurance group.
(e)    (1)    “Self-insurance group” means two or more employers organized in accordance with this subtitle.
(2)    “Self-insurance group” does not include a governmental self-insurance group organized under § 9-404 of the Labor and Employment Article.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 3 - Group Self-Insurance for Workers' Compensation › Section 25-303 - Regulations

(a)    In this section, “service company” means a person that provides services that are not provided by the administrator, including:
(1)    claims adjustment;
(2)    safety engineering;
(3)    compilation of statistics and the preparation of premium, loss, and tax reports;
(4)    preparation of other required self-insurance reports;
(5)    development of members’ assessments and fees; and
(6)    administration of a claim fund.
(b)    The Commissioner shall adopt regulations to carry out this subtitle.
(c)    The regulations shall include:
(1)    classifications of businesses and industries, based on the type of activity conducted by the business or industry, within which employers may join together in self-insurance groups;
(2)    for each classification:
(i)    a minimum level of contribution of at least $250,000 in premiums collected from or pledged by members of a self-insurance group to a fund from which workers’ compensation claims will be paid;
(ii)    a minimum level of excess insurance coverage that must be obtained by each self-insurance group;
(iii)    a requirement that the minimum levels of excess insurance adopted under this subtitle may be satisfied by placing, in a depository that the Commissioner designates, securities in a form and amount that the Commissioner requires; and
(iv)    a surety bond of at least $100,000 that must be obtained by each self-insurance group;
(3)    conditions under which contributions by members of a self-insurance group may be rebated or temporarily suspended;
(4)    for each administrator or service company, a bond that the Commissioner may require in addition to any other required bond; and
(5)    a requirement that the governance of the group be under the control of its members.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 3 - Group Self-Insurance for Workers' Compensation › Section 25-304 - General Requirements

(a)    Before a self-insurance group may operate, the self-insurance group must obtain the approval of the Commissioner, including approval of its self-insurance agreement.
(b)    Each self-insurance group must have combined net assets of at least $1,000,000.
(c)    (1)    A self-insurance group shall pay all workers’ compensation benefits for which each member incurs liability during its period of membership.
(2)    Each member of a self-insurance group is jointly and severally liable for the workers’ compensation obligations of the group and its members that are incurred during its period of membership.
(3)    A member who elects to terminate its membership in or is canceled by a group remains jointly and severally liable for workers’ compensation obligations of the group and its members which were incurred during the canceled or terminated member’s period of membership.
(4)    The insolvency or bankruptcy of a member does not relieve the self-insurance group or any other member of liability for the payment of workers’ compensation benefits incurred during the insolvent or bankrupt member’s period of membership.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 3 - Group Self-Insurance for Workers' Compensation › Section 25-305 - Self-Insurers' Guaranty Fund

(a)    A self-insurance group is not liable for payments to the Property and Casualty Insurance Guaranty Corporation.
(b)    There is a Self-Insurers’ Guaranty Fund.
(c)    The Uninsured Employers’ Fund established under § 10-304 of the Labor and Employment Article shall administer the Self-Insurers’ Guaranty Fund.
(d)    Each self-insurance group shall pay an assessment into the Self-Insurers’ Guaranty Fund at the same level assessed against other workers’ compensation insurers by the Property and Casualty Insurance Guaranty Corporation under Title 9, Subtitle 3 of this article.
(e)    (1)    The Self-Insurers’ Guaranty Fund shall pay any outstanding obligations of a self-insurance group that becomes insolvent.
(2)    If the Self-Insurers’ Guaranty Fund becomes insolvent, any outstanding obligations of an insolvent self-insurance group are a joint and several liability of each member of the self-insurance group.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 3 - Group Self-Insurance for Workers' Compensation › Section 25-306 - Termination of Self-Insurance Agreement; Mergers

(a)    The Commissioner may not grant the request of a self-insurance group to terminate its self-insurance agreement unless the self-insurance group has insured or reinsured all incurred workers’ compensation obligations with an authorized insurer under an agreement filed with and approved in writing by the Commissioner.
(b)    (1)    Subject to the approval of the Commissioner, a self-insurance group may merge with another self-insurance group engaged in the same or similar type of business only if the resulting self-insurance group assumes all the obligations of the merging self-insurance groups.
(2)    The Commissioner shall hold a hearing on the merger at the request of any party including a member of either self-insurance group.
(c)    For purposes of this section, obligations include known claims and associated expenses and claims incurred but not reported and associated expenses.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 3 - Group Self-Insurance for Workers' Compensation › Section 25-307 - Determining Financial Condition of Group

The Commissioner may:
(1)    require actuarial studies and audits to determine the financial solvency of each self-insurance group as often as the Commissioner desires;
(2)    assess each self-insurance group an annual amount of not more than $500 to be used for the actuarial studies and audits; and
(3)    require an annual report that may include payroll audit reports, summary loss reports, and quarterly financial statements.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 3 - Group Self-Insurance for Workers' Compensation › Section 25-308 - Penalties for Violations

(a)    (1)    After notice and opportunity for a hearing, the Commissioner may impose a monetary penalty on a person or self–insurance group that the Commissioner finds to be in violation of this subtitle or a regulation adopted under this subtitle.
(2)    A monetary penalty imposed under this subsection may not exceed $1,000 for each violation or $10,000 in the aggregate.
(3)    A person or self–insurance group that is assessed a monetary penalty under this subsection shall pay the penalty to the Commissioner for the use of the State.
(b)    (1)    After written notice and opportunity for a hearing, the Commissioner may issue an order that requires a person or self–insurance group to cease and desist from engaging in an act or practice that the Commissioner finds to be in violation of this subtitle or a regulation adopted under this subtitle.
(2)    If the Commissioner finds, after notice and opportunity for a hearing, that a person or self–insurance group has violated an order issued under this subsection, the Commissioner may:
(i)    impose a monetary penalty of not more than $10,000 for each violation of the order or $100,000 in the aggregate; and
(ii)    suspend or revoke the authority of the self–insurance group to operate.
(c)    Notwithstanding any other provision of this subtitle, after notice and opportunity for a hearing, the Commissioner may suspend or revoke the authority of a self–insurance group to operate if the Commissioner determines that the self–insurance group:
(1)    is insolvent;
(2)    failed to pay the special fund contribution or regulatory fee imposed on the self–insurance group;
(3)    failed to comply within the time set with a provision of this subtitle, a regulation adopted under this subtitle, or a lawful order of the Commissioner;
(4)    obtained its authority to operate by fraud, including making a material misrepresentation in the application for authority to operate as a self–insurance group;
(5)    misappropriated, converted, illegally withheld, or refused to pay on proper demand money that has been entrusted to the self–insurance group or its administrator in its fiduciary capacity and that belongs to a member of the self–insurance group, an employee of a member, or a person entitled to payment; or
(6)    for any other reason, must have its authority to operate suspended or revoked to protect the members or insureds of a self–insurance group or the public.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 4 - Maryland Property Insurance Availability Act › Section 25-401 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Association” means the Joint Insurance Association.
(c)    “Association member” means an insurer that is licensed to write in the State, on a direct basis, essential property insurance or a component of essential property insurance in multi-peril policies.
(d)    (1)    “Essential property insurance” means insurance against direct loss to property from the perils of fire, lightning, removal, explosion, windstorm, hail, smoke, aircraft, vehicles, riot, civil commotion, or vandalism as defined and limited in property insurance forms that the Association files with the Commissioner.
(2)    “Essential property insurance” does not include:
(i)    motor vehicle insurance;
(ii)    inland marine insurance; or
(iii)    insurance on property that:
1.    is used for fabrication, processing, or assembly of products or components of products;
2.    has an insurable value in excess of $250,000; and
3.    is used in a business that employs at least 25 individuals.
(e)    “Homeowner’s insurance” means insurance for residential property that provides a combination of coverages including:
(1)    fire;
(2)    extended coverage;
(3)    vandalism and malicious mischief;
(4)    burglary;
(5)    theft; and
(6)    personal liability.
(f)    (1)    “Premiums written” means, as computed by the Association, gross direct premiums charged during the second preceding calendar year with respect to property in the State on all policies of essential property insurance and the essential property insurance components of multi-peril policies, less return premiums, dividends paid or credited to policyholders, or the unused or unabsorbed parts of premium deposits.
(2)    “Premiums written” does not include premiums or parts of premiums relating to risks ceded to the Association.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 4 - Maryland Property Insurance Availability Act › Section 25-402 - Purposes of Subtitle

The purposes of this subtitle are:
(1)    to authorize and establish:
(i)    the Joint Insurance Association;
(ii)    a program to make essential property insurance available from the Association to qualified applicants with the least possible administrative detail and expense; and
(iii)    a program to make the homeowner’s insurance that is provided by the Association available to qualified applicants with the least possible administrative detail and expense;
(2)    to encourage the improvement of the condition of properties located in the State;
(3)    to further orderly community development in general;
(4)    to publicize the purposes and procedures of this subtitle so that no one fails to seek assistance from the Association because of ignorance;
(5)    to utilize fully the voluntary insurance market as a source of essential property insurance and homeowner’s insurance; and
(6)    to encourage the delivery of essential property insurance, and the homeowner’s insurance that is provided by the Association, at the most reasonable cost possible, provided that insurance pricing by the Association:
(i)    is actuarially self-supporting; and
(ii)    does not actively compete with insurance pricing in the voluntary insurance market.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 4 - Maryland Property Insurance Availability Act › Section 25-403 - Joint Insurance Association

(a)    (1)    There is a Joint Insurance Association.
(2)    The Association is an unincorporated association.
(b)    (1)    The Association consists of all insurers that are licensed to write in the State, on a direct basis, essential property insurance or a component of essential property insurance in multi-peril policies.
(2)    As a condition of its authority to transact essential property insurance business in the State, an insurer must be and remain an Association member.
(c)    The Association may:
(1)    establish a program of operation, subject to the approval of the Commissioner; and
(2)    cause policies to be issued and assume and cede reinsurance on risks written in conformity with the program of operation.
(d)    Each Association member shall participate in the Association’s expenses, profits, and losses in the proportion that the Association member’s premiums written bear to the aggregate premiums written by all Association members.
(e)    (1)    A Governing Committee shall administer the Association.
(2)    The Governing Committee consists of nine Association members.
(3)    All Association members annually shall elect the members of the Governing Committee.
(4)    Votes shall be weighted in accordance with the premiums written by each Association member.
(f)    (1)    An Association member, the Association or its agents or employees, the Board of Directors, and the Commissioner or the Commissioner’s representatives shall have the immunity from liability described in § 5-411(a) of the Courts Article.
(2)    An Association member, the Association, the Governing Committee, their agents or employees, the Commissioner, and the Commissioner’s authorized representatives shall have the immunity from liability described in § 5-411(b) of the Courts Article.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 4 - Maryland Property Insurance Availability Act › Section 25-404 - Legal Status of Association

(a)    (1)    The Association is not and may not be deemed a department, unit, agency, or instrumentality of the State.
(2)    All debts, claims, obligations, and liabilities incurred by the Association shall be the debts, claims, obligations, and liabilities of the Association only and not of the State or the State’s agencies, instrumentalities, officers, or employees.
(b)    (1)    The money of the Association is not part of the General Fund of the State.
(2)    The State may not budget for or provide General Fund appropriations to the Association.
(3)    The debts, claims, obligations, and liabilities of the Association are not debts of the State or pledges of the credit of the State.
(c)    The records, reports, and communications of the Association, the Governing Committee, the committees of the Association, and their representatives, agents, and employees are not public documents.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 4 - Maryland Property Insurance Availability Act › Section 25-406 - Insurance Available Through Association

A person with an insurable interest in real or tangible personal property at a fixed location may apply to the Association for essential property insurance or homeowner’s insurance if the person has been:
(1)    unable to obtain essential property insurance or homeowner’s insurance;
(2)    able to obtain essential property insurance or homeowner’s insurance only after application under § 11-210 or § 11-311 of this article; or
(3)    able to obtain only partial coverage for the value of the property.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 4 - Maryland Property Insurance Availability Act › Section 25-407 - Inspection of Property

(a)    The Association may inspect the property of an applicant for essential property insurance or homeowner’s insurance coverage.
(b)    (1)    Except as provided in paragraph (2) of this subsection, the Association shall inspect the property without cost to the owner.
(2)    If the Association is unable to complete an inspection of the property due to the fault of the owner or applicant, the Association may require the applicant to pay in advance the reasonable cost of subsequent efforts to inspect the property.
(c)    (1)    The applicant or representative of the applicant shall be afforded the opportunity to be present during the inspection.
(2)    The inspector does not have authority to advise whether the Association will provide coverage to the property being inspected.
(3)    The inspector may take photographs of the property during the inspection.
(d)    The inspection report shall:
(1)    cover pertinent structural and occupancy features and the general condition of the building and surrounding structures;
(2)    indicate the pertinent features of building, construction, maintenance, occupancy, and surrounding property; and
(3)    include a rate makeup statement that covers any condition charges or surcharges imposed:
(i)    as a result of the inspection;
(ii)    under the program of operation; or
(iii)    under a substandard rating plan approved by the Commissioner.
(e)    On request, the Association shall make available a copy of the inspection report to the applicant or the applicant’s licensed insurance producer.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 4 - Maryland Property Insurance Availability Act › Section 25-408 - Powers and Duties of Commissioner

(a)    The Commissioner shall have the same powers over the Association as are granted under this article with respect to domestic insurers that are authorized insurers.
(b)    If the Commissioner determines that the rate structure for policies of essential property insurance and homeowner’s insurance offered by or through the Association does not compete with the rate structure of the voluntary insurance market in the State, the Commissioner shall approve the rate structure.
(c)    (1)    The Commissioner shall monitor and review the financial condition of Association members to ensure that the Association members are able to pay assessments that the Association may levy on them.
(2)    The Commissioner may use the annual statements of Association members and other available data to monitor and review their financial condition.
2023 Maryland Statutes › Insurance › Title 25 - Alternative Market Mechanisms › Subtitle 4 - Maryland Property Insurance Availability Act › Section 25-409 - Appeals

(a)    (1)    An applicant for essential property insurance or homeowner’s insurance or an affected insurer may appeal to the Governing Committee.
(2)    A decision of the Governing Committee may be appealed to the Commissioner within 30 days after the decision.
(b)    An order or decision of the Commissioner made under this subtitle is subject to judicial review.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 1 - Definitions; General Provisions › Section 26-101 - Definitions

(a)    In this title the following words have the meanings indicated.
(b)    “Emergency road service” means the adjustment, repair, or replacement of the equipment, tires, or mechanical parts of a motor vehicle so that the motor vehicle may be operated under its own power.
(c)    “License” means a license issued by the Commissioner to provide motor club service.
(d)    “Licensee” means a motor club that is licensed by the Commissioner to provide motor club service.
(e)    “Member” means a member or subscriber of a motor club.
(f)    “Motor club” means a person engaged directly or indirectly in selling or offering for sale, furnishing, or procuring motor club service.
(g)    “Motor club service” means, in connection with the ownership, operation, use, or maintenance of a motor vehicle by a person, and in consideration of the person being or becoming a member of a motor club, affiliated with a motor club, or entitled to receive membership or other service from a motor club because of an agreement between the person and the motor club, the rendering, furnishing, or procuring of or the payment or reimbursement for, wholly or partly, any or all of the following services to the person:
(1)    emergency road service, including the replacement of a motor vehicle key or key fob if the key or key fob becomes inoperable or is lost or stolen;
(2)    bail bond service, which is the furnishing of or arranging for a cash deposit, bond, or other form of security required by law for a member accused of a violation of a motor vehicle law or traffic ordinance, to obtain the member’s release from custody pending trial;
(3)    financing service, which is the arranging for a loan or other advance of money to a member in connection with providing any other motor club service;
(4)    insurance service, which is the furnishing of coverage to a member under an approved group or blanket policy, subject to the limitations of this article, issued to the motor club by an authorized insurer;
(5)    legal reimbursement service, which is the payment for or reimbursement of a member of fees charged by an attorney for services rendered to the member in defense of a traffic offense;
(6)    theft service, which is the offering of assistance in locating, identifying, or recovering a stolen or missing motor vehicle owned by a member, or the offering of a reward for the purpose of detecting or apprehending the person guilty of the theft; and
(7)    towing service, which is the furnishing to a member of the means to move a motor vehicle, under power other than its own, from one place to another.
(h)    “Representative” means an individual who, for compensation, solicits or sells memberships, subscriptions, or franchises for a motor club.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 1 - Definitions; General Provisions › Section 26-102 - Scope of Title

(a)    (1)    The offering of motor club service is regulated under this title but is not engaging in insurance business.
(2)    This title does not otherwise exempt a licensee or its representatives from the requirements of the laws relating to insurance or insurance services.
(b)    This title does not apply to:
(1)    a motor vehicle manufacturer, distributor, or a wholly owned subsidiary of a manufacturer or distributor, as those terms are defined in § 15–201 of the Transportation Article, that offers for sale, furnishes, or procures emergency road service, towing service, or other service that may be offered by a licensed motor club under this title as part of a mechanical repair contract as defined in § 15–311.2 of the Transportation Article; or
(2)    a licensed vehicle dealer or any person that offers for sale, furnishes, or procures emergency road service, towing service, or other service that may be offered by a licensed motor club under this title as part of a mechanical repair contract if the provider of services maintains adequate insurance reserves as defined by the Commissioner and the mechanical repair contract is offered in compliance with § 15–311.2 of the Transportation Article.
(c)    This title does not limit or prohibit a motor club from selling, offering for sale, or furnishing to or procuring for members services or products not defined in this title.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 1 - Definitions; General Provisions › Section 26-103 - General Powers of Commissioner

(a)    The Commissioner may conduct investigations and examine the books, records, and accounts of a person at the person’s expense under this title to the same extent as is authorized with respect to insurers under this article.
(b)    The Commissioner may:
(1)    investigate possible violations of this title and subpoena persons and documents that the Commissioner considers appropriate in connection with the investigation;
(2)    require a licensee to stop doing business through a particular representative on finding, after notice and opportunity for a hearing, that the representative has intentionally or negligently made false or misleading statements about the services offered by the licensee; and
(3)    adopt regulations to administer, carry out, or enforce this title.
(c)    (1)    The Commissioner may approve or disapprove the name, trademarks, emblems, and forms that an applicant or licensee uses or proposes to use in connection with its business.
(2)    The Commissioner shall approve a name, trademark, or emblem if the name, trademark, or emblem:
(i)    is distinctive;
(ii)    is not similar to or in conflict with the name, trademark, or emblem of a local organization or a nationally registered or copyrighted name, trademark, or emblem;
(iii)    is not likely to confuse or mislead the public about the nature or identity of the applicant or licensee using or proposing to use the name, trademark, or emblem; and
(iv)    will not interfere with the transactions of a licensee already operating in the State.
(3)    The Commissioner may disapprove the use of, and order that the licensee stop using, a name, trademark, or emblem not approved under paragraph (2) of this subsection.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 2 - Licenses › Section 26-202 - Capital and Surplus Requirements

(a)    To qualify for a license to engage in the business of a motor club, a motor club with capital stock must have and maintain:
(1)    paid-in capital stock with a fixed nominal or par value in an amount not less than $5,000; and
(2)    surplus in an amount not less than $10,000.
(b)    A motor club formed under the laws of the State without paid-in capital stock shall have and maintain unencumbered assets, in addition to required reserves and other liabilities, in an amount equal to that required under subsection (a) of this section.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 2 - Licenses › Section 26-203 - Applications for Initial License

(a)    An applicant for an initial license shall:
(1)    file with the Commissioner an application on the form that the Commissioner provides; and
(2)    pay to the Commissioner an application fee of $200.
(b)    (1)    An applicant for a license shall submit to the Commissioner the information that the Commissioner considers reasonably necessary to determine, in accordance with this title, whether to issue a license to the applicant.
(2)    The application shall be executed under oath by the applicant or, if the applicant is not an individual, by an authorized officer of the applicant.
(c)    The application shall include:
(1)    if the applicant is a corporation:
(i)    a certificate of good standing from the Department of Assessments and Taxation;
(ii)    the names and addresses of the officers and directors of the corporation; and
(iii)    the names and addresses of each owner of more than 10% of the capital stock of the corporation issued and outstanding;
(2)    if the applicant is not a corporation:
(i)    a list of all the owners of interests in the applicant;
(ii)    a list of the officers of the applicant; and
(iii)    a list of the parties to any operating or management agreement that affects the applicant, together with a copy of the agreement;
(3)    a financial statement certified by a certified public accountant within the previous 6 months, that presents fairly, in accordance with generally accepted accounting principles, the financial position of the applicant and contains the information that the Commissioner requires;
(4)    a copy of the applicant’s service contract and the fees to be charged to members, as described in § 26–402 of this title; and
(5)    evidence of security in accordance with § 26–204 of this subtitle.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 2 - Licenses › Section 26-204 - Evidence of Security

(a)    An applicant for a license shall deposit with the Treasurer, who shall maintain in trust:
(1)    registered United States government bonds with a market value at all times not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000;
(2)    a corporate surety bond in the form that the Commissioner requires in a penal sum not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000; or
(3)    a letter of credit in the form that the Commissioner requires in an amount not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000.
(b)    (1)    The bond or letter of credit described under subsection (a)(2) or (3) of this section shall be:
(i)    in favor of the State for the members of the applicant that reside in the State;
(ii)    issued by a surety insurer or bank authorized to do business in the State; and
(iii)    conditioned on the faithful performance by the applicant of its obligations under this title, including payment of any fines, fees, or penalties imposed on it or restitution ordered under this title.
(2)    The total liability of the surety insurer under the bond may not exceed the penal sum of the bond.
(3)    The total liability of the bank under the letter of credit may not exceed the amount of the letter of credit.
(4)    (i)    The surety insurer or bank may cancel the bond or letter of credit after notifying the Commissioner at least 30 days before the effective date of the cancellation.
(ii)    Neither the surety insurer nor the bank is liable for any breach of condition that occurs after the effective date of the cancellation.
(5)    The Commissioner may adopt regulations that specify conditions for surety bonds and letters of credit required by this section and provide methods for their termination.
(c)    (1)    The security required by subsection (a) of this section shall be maintained as long as the licensee has any outstanding liability or obligation in the State.
(2)    Subject to approval by the Commissioner, the licensee may substitute any type of security required by subsection (a) of this section for any other type of security required by subsection (a) of this section.
(3)    On proof satisfactory to the Commissioner that the licensee has stopped doing business and that all of the licensee’s liabilities and obligations have been satisfied, the Commissioner shall authorize the Treasurer to return the security to the licensee.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 2 - Licenses › Section 26-205 - Issuance or Disapproval of License

(a)    Within a reasonable time after an application for a license is filed, the Commissioner shall issue a license to the applicant unless:
(1)    the applicant has not met all of the requirements of this title;
(2)    in the judgment of the Commissioner, the applicant does not have sufficient financial responsibility to engage in the business of a motor club; or
(3)    the applicant has failed to make a reasonable showing that all of its owners, managers, officers, directors, or representatives are persons of reliability and integrity.
(b)    If the Commissioner disapproves the application for a license, the Commissioner shall notify the applicant as soon as practicable of the reason for the disapproval and inform the applicant of its right to a hearing on the matter as provided in § 26-209 of this subtitle.
(c)    If an application for a license filed under this subtitle is disapproved, the Commissioner shall:
(1)    retain $50 of the application fee paid by the applicant; and
(2)    return the balance of the application fee to the applicant.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 2 - Licenses › Section 26-206 - Term and Renewal of License

(a)    A license expires on the first December 31 after its effective date unless it is renewed as provided in this section.
(b)    At least 1 month before a license expires, the Commissioner shall send to the licensee, at the last known address of the licensee or electronic mail address of the holder on record a notice that states:
(1)    the process for renewing the license;
(2)    the date by which the Commissioner must receive the renewal application; and
(3)    the amount of the renewal fee.
(c)    Before a license expires, the licensee may renew it for an additional 1–year term if the holder:
(1)    otherwise is entitled to a license;
(2)    files with the Commissioner a renewal application:
(i)    on the form that the Commissioner provides; or
(ii)    in an electronic format that the Commissioner approves;
(3)    files with the Commissioner the fees to be charged to members;
(4)    provides a financial statement as required under § 26–203(c)(3) of this subtitle; and
(5)    pays to the Commissioner a renewal fee of $100.
(d)    The Commissioner shall renew the license of each licensee that meets the requirements of this section.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 2 - Licenses › Section 26-207 - Service of Process

(a)    (1)    Each licensee must appoint the Commissioner as attorney for service of process issued against the licensee under this title.
(2)    The appointment of the Commissioner must:
(i)    be in writing; and
(ii)    state that the licensee agrees that:
1.    lawful process against the licensee that is served on the Commissioner, or in the Commissioner’s absence, on an employee in charge of the office of the Commissioner, has the same effect as if served on the licensee; and
2.    the authority of the Commissioner to act as attorney for service of process continues in force as long as any liability remains outstanding against the licensee under this title in the State.
(3)    A certified certificate of the appointment shall be filed with the Commissioner.
(b)    (1)    When lawful process against a licensee under this title is served on the Commissioner, three copies of the process shall be furnished to the Commissioner.
(2)    The Commissioner immediately shall forward:
(i)    one copy of the process to the licensee by certified mail, return receipt requested; and
(ii)    one copy of the process to the resident agent or other similar official, if any, of the licensee in the State.
(c)    (1)    At the time of the service, the plaintiff shall pay to the Commissioner a fee of $2 for each service of process.
(2)    If the plaintiff prevails in the suit, the plaintiff may recover, as part of the taxable costs, any fee paid under this subsection.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 2 - Licenses › Section 26-208 - Suspensions and Revocations

After notice and opportunity for a hearing, the Commissioner may suspend or revoke a license if the Commissioner finds that the licensee:
(1)    has violated any provision of this title;
(2)    has failed to maintain the standards required under this title for the issuance of an initial license;
(3)    is insolvent;
(4)    has liabilities that exceed its assets;
(5)    has engaged in a fraudulent or deceptive act; or
(6)    has entered into a service contract the form of which has not been approved by the Commissioner.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 2 - Licenses › Section 26-209 - Hearings; Judicial Review

(a)    An applicant for a license or a licensee is entitled to a hearing before the Commissioner if the application is denied or not acted on within a reasonable time or if the license is suspended or revoked.
(b)    An applicant or licensee that is adversely affected by an order of the Commissioner may seek judicial review of the order in accordance with § 2-215 of this article.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 3 - Representatives › Section 26-301 - Appointment of Representative

(a)    Through its proper officer or agent, each licensee promptly shall notify the Commissioner of the name, title, and address of each individual the licensee desires to appoint as a representative in the State.
(b)    The notice required by this section shall be:
(1)    filed with the Commissioner on the form that the Commissioner provides; and
(2)    accompanied by:
(i)    an initial registration fee of $5; and
(ii)    a statement in writing, by the appointee, that gives:
1.    the appointee’s name, age, residence address, business address, present occupation, and occupation for the 5 years immediately preceding the date of the notice;
2.    the names of motor clubs represented during the 5 years immediately preceding the date of the notice and where represented; and
3.    any other information the Commissioner requires.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 3 - Representatives › Section 26-302 - Issuance of Registration Certificate

The Commissioner shall issue a registration certificate to an appointee if it appears to the Commissioner that the appointee:
(1)    is a suitable and competent individual of good moral character;
(2)    intends to represent to the public in good faith that the appointee is a representative;
(3)    has not previously been denied registration or had a registration revoked under § 26-307 of this subtitle; and
(4)    otherwise meets the requirements of this subtitle.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 3 - Representatives › Section 26-305 - Term and Renewal of Registration

(a)    A registration expires on the first August 31 after its effective date unless it is renewed as provided in this section.
(b)    At least 1 month before a registration expires, the Commissioner shall send to the licensee, at the last known address of the licensee or electronic mail address of the licensee on record a notice that states:
(1)    the process for renewing the registration;
(2)    the date by which the Commissioner must receive the renewal application; and
(3)    the amount of the renewal fee.
(c)    Before a registration expires, the licensee may renew the registration of a representative for an additional 1–year term if:
(1)    the representative otherwise is entitled to a registration;
(2)    the licensee files with the Commissioner a renewal application:
(i)    on the form that the Commissioner provides; or
(ii)    in an electronic format that the Commissioner approves; and
(3)    the licensee pays to the Commissioner a registration renewal fee of $2.
(d)    The Commissioner shall renew the registration of a representative if the licensee and representative meet the requirements of this section.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 3 - Representatives › Section 26-307 - Denials and Revocations

(a)    Subject to subsection (c) of this section, the Commissioner shall deny a registration to an appointee or revoke the registration of a registered representative if the Commissioner, for cause and after a hearing, determines that the appointee or representative:
(1)    has made a false or misleading statement about the services offered by, or the business of, the licensee represented by the appointee or representative;
(2)    has been convicted of a crime involving moral turpitude; or
(3)    is otherwise unsuitable to act as a representative.
(b)    If the Commissioner denies or revokes a registration under this section, the Commissioner shall notify the licensee and the representative or appointee of the denial or revocation in writing.
(c)    The Commissioner need not deny or revoke a registration under this section if the Commissioner concludes, based on all the facts and circumstances, that the public interest would not be served by the denial or revocation.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 4 - Miscellaneous Provisions › Section 26-401 - Limitations on Advertising

A motor club may not:
(1)    refer to its license or approval from the Commissioner or the State in any advertising, circular, contract, or membership card; or
(2)    advertise or describe its motor club service in a manner that would lead the public to believe that its motor club services include motor vehicle insurance.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 4 - Miscellaneous Provisions › Section 26-402 - Service Contract and Membership Card

(a)    Each motor club shall provide to its members:
(1)    a service contract;
(2)    a membership card; and
(3)    the following information:
(i)    the exact name of the motor club;
(ii)    the street address of the motor club’s home office;
(iii)    the street address of the motor club’s principal place of business in the State;
(iv)    the telephone numbers of the motor club’s home and business offices; and
(v)    a description of the motor club services or benefits to which the member is entitled.
(b)    Unless a motor club provides and the Commissioner approves another form of service contract, the service contract consists of:
(1)    the completed application or renewal application of the motor club;
(2)    the filed fees to be charged to members of the motor club; and
(3)    the description of motor club services or benefits to which the members are entitled.
(c)    A service contract may not:
(1)    contain inconsistent, ambiguous, or misleading clauses, exceptions, or conditions that deceptively affect the risk purported to be assumed or the motor club service to be performed;
(2)    contain an inequitable provision that does not have a substantial benefit to the member;
(3)    require the payment of fees that are unreasonable in relation to the motor club service agreed to be performed; or
(4)    offer reimbursement only, unless the contract clearly states that emergency road service will not be provided.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 5 - Prohibited Acts; Penalties › Section 26-501 - Prohibited Acts

(a)    A person may not act as a representative of a licensee unless the person is registered under Subtitle 3 of this title.
(b)    A person may not sell, solicit, or act as a representative for an unlicensed motor club doing business in the State.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 5 - Prohibited Acts; Penalties › Section 26-501.1 - Prohibited Acts -- Unlicensed Persons Providing Services

(a)    This title does not apply to:
(1)    an authorized property and casualty insurer that provides emergency road service, towing service, or a similar type of indemnification under a policy that has been filed with and approved by the Commissioner; or
(2)    an obligor under a mechanical repair contract that provides emergency road service, towing service, or other service that may be offered by a licensed motor club under this title if the mechanical repair contract is offered in compliance with § 15–311.2 of the Transportation Article.
(b)    Unless a person holds a license issued by the Commissioner, the person may not represent to the public, by use of a title, including “motor club” or “licensed motor club”, by description of services, or otherwise, that the person is licensed or otherwise authorized to provide motor club service or engage in the business of a motor club in the State.
2023 Maryland Statutes › Insurance › Title 26 - Motor Clubs › Subtitle 5 - Prohibited Acts; Penalties › Section 26-502 - Penalties

(a)    A person that willfully violates this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both.
(b)    In addition to any other penalty provided in this title, the Commissioner after notice and hearing may impose on a licensee or representative for each violation of this title a penalty:
(1)    not exceeding $25,000 for a licensee; or
(2)    not exceeding $5,000 for a representative.
(c)    Instead of or in addition to a penalty imposed under this section, the Commissioner may require that restitution be made to any citizen who has suffered financial injury because of a violation of this title.
2023 Maryland Statutes › Insurance › Title 27 - Unfair Trade Practices and Other Prohibited Practices › Subtitle 1 - General Provisions › Section 27-101 - Purpose of Title

The purpose of this title is to regulate trade practices in the business of insurance in accordance with the intent of Congress expressed in the McCarran-Ferguson Act, 15 U.S.C. §§ 1011 through 1015, by defining, or providing for the determination of, all trade practices in the business of insurance in the State that are unfair methods of competition or unfair or deceptive acts or practices and by prohibiting those trade practices.
2023 Maryland Statutes › Insurance › Title 27 - Unfair Trade Practices and Other Prohibited Practices › Subtitle 1 - General Provisions › Section 27-102 - Unfair Trade Practices Prohibited

A person may not engage in the State in a trade practice that is defined in this title as, or determined under this title to be, an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.
2023 Maryland Statutes › Insurance › Title 27 - Unfair Trade Practices and Other Prohibited Practices › Subtitle 1 - General Provisions › Section 27-103 - Cease and Desist Orders

(a)    (1)    If the Commissioner finds that a person in the State has engaged or is engaging in an act or practice that is defined in or prohibited under this title, the Commissioner shall order the person to cease and desist from the act or practice.
(2)    The Commissioner shall hold a hearing before the Commissioner issues a cease and desist order under this subsection.
(3)    The Commissioner shall give the person notice of the hearing and the charges against the person.
(b)    The cease and desist order is final:
(1)    if no appeal is taken, when the time allowed for taking an appeal from an order of the Commissioner expires; or
(2)    if an appeal is taken, when the court issues a final decision that affirms the cease and desist order or dismisses the appeal.
(c)    If an appeal is taken, the court shall issue its own order that requires compliance with the terms of the cease and desist order to the extent that the cease and desist order is affirmed.
(d)    Violation of a cease and desist order issued under this section is deemed to be and is punishable as a violation of this article.
(e)    A cease and desist order issued under this section or an order of court that enforces it does not relieve any person affected by the order from any other liability, penalty, or forfeiture under law.
(f)    Regardless of whether a hearing is scheduled or held or a cease and desist order is issued, this section does not affect or prevent the imposition of a penalty provided by this article or other law for violation of another provision of this title.