Section 8-107 - Controlled insurers. - Maryland Statutes

§ 8-107. Controlled insurers.
 

(a)  Charging unjustifiably lower premiums prohibited.-  

(1) With respect to insurance business placed by its controlling insurance producer, the controlled insurer may not engage in a pattern of charging premiums that are unjustifiably lower than those being charged by the controlled insurer or other insurers for similar risks written during the same period and placed by noncontrolling insurance producers. 

(2) When determining whether premiums are unjustifiably lower than those prevailing in the market, the Commissioner shall take into consideration applicable industry or actuarial standards at the time the insurance business was written. 

(b)  Underwriting procedures.- With respect to insurance business placed by its controlling insurance producer, the controlled insurer shall establish underwriting procedures and may not deviate from them. 

(c)  Capitalization.- A controlled insurer's capitalization at the time insurance business is placed by the controlling insurance producer and with respect to that insurance business shall comply with: 

(1) criteria set by the Commissioner; and 

(2) all applicable insurance laws. 
 

[An. Code 1957, art. 48A, § 662; 1995, ch. 36; 2001, ch. 731, § 1.]