2013 Maryland Code
INSURANCE
§ 24-305 - Schedule of premium rates


MD Ins Code § 24-305 (2013) What's This?

§24-305.

(a) The Company is not subject to Title 11 of this article.

(b) The Board shall:

(1) adopt a schedule of premium rates in accordance with sound actuarial practices; and

(2) ensure that the rates are not excessive, inadequate, or unfairly discriminatory.

(c) (1) The Board shall determine the schedule of premium rates by:

(i) classifying all of the policyholders of the Company on the basis of the respective level of hazard of their enterprises; and

(ii) setting a premium rate for each class on the basis of:

1. its level of hazard; and

2. incentives to prevent injuries to employees.

(2) To determine the schedule of premium rates, the Board shall use the rating system that, in the opinion of the Board:

(i) most accurately measures the level of hazard for each policyholder on the basis of the number of injuries that occur in the enterprises of the policyholder;

(ii) encourages the prevention of injuries; and

(iii) ensures the solvency of the Company from year to year.

(3) The Board may set minimum premium rates for policies issued by the Company.

(d) The Commissioner shall review the Company’s rates as part of an examination under § 2-205 of this article to determine whether the Company’s rate making practices produce actuarially sound rates.

Disclaimer: These codes may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.