2013 Maryland Code
INSURANCE
§ 7-802 - Civil penalty [Subject to amendment effective January 1, 2014; amended version follows this section].

§7-802.

(a) In addition to any other penalty provided by law, a person that willfully violates this title or any regulation adopted under this title is subject to a penalty of $1,000 for the first day of violation and $100 for each additional day that the violation continues.

(b) Before imposing a penalty under this subsection, the Commissioner:

(1) shall give the person that allegedly committed the violation notice and an opportunity for hearing; and

(2) must find that the person willfully committed the violation.

§ 7-802 - Civil penalty (Effective January 1, 2014)

(a) In general. -- In addition to any other penalty provided by law, a person that willfully violates this title or any regulation adopted under this title is subject to a penalty of up to $ 10,000 for the first day of violation and up to $ 1,000 for each additional day that the violation continues.

(b) Factors in determining amount of penalty. -- In determining the amount of any financial penalty to be imposed under this section, the Commissioner shall consider the following factors:

(1) the seriousness of the violation;

(2) the good faith of the violator;

(3) the violator's history of previous violations;

(4) the deleterious effect of the violation on the public and the insurance industry; and

(5) the assets of the violator.

(c) Limitation. -- Before imposing a penalty under this subsection, the Commissioner:

(1) shall give the person that allegedly committed the violation notice and an opportunity for hearing; and

(2) must find that the person willfully committed the violation.

§ 7-802 - 1. Violations of reporting and submissions requirements (Effective January 1, 2014)

(a) In general. -- A director or an officer of an insurance holding company system who knowingly participates in, assents to, or allows any of the officers or agents of an insurer to engage in transactions or investments that have not been properly reported or submitted under Subtitles 6 and 7 of this title, shall pay, in the director's or officer's individual capacity, a civil penalty in accordance with § 7-802 of this subtitle, after notice and an opportunity for hearing before the Commissioner.

(b) Factors in determining amount of penalty. -- In determining the amount of the civil penalty, the Commissioner shall take into account the factors in § 7-802(b) of this subtitle.

(c) Cease and desist prior to hearing; actions after hearing. --

(1) Whenever it appears to the Commissioner that an insurer subject to this title, or a director, an officer, an employee, or an agent of the insurer, has engaged in a transaction or entered into a contract that is subject to Subtitle 7 of this title and that would not have been approved if the approval had been requested, the Commissioner may order the insurer to cease and desist immediately any further activity under that transaction or contract.

(2) After notice and an opportunity for hearing, the Commissioner also may order the insurer to void any contracts and restore the status quo if, in the Commissioner's judgment, the action is in the best interest of the policyholders, the creditors, or the public.