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Current as of December 31, 2021 | Updated by FindLaw Staff
(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.
Cite this article: FindLaw.com - Maryland Code, Insurance § 25-308 - last updated December 31, 2021 | https://codes.findlaw.com/md/insurance/md-code-insurance-sect-25-308/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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