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§ 11-402. Rate making principles

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 11. Insurance Rating Law
Subtitle 4. Title Insurance Rating (Refs & Annos)
MD Code, Insurance, § 11-402
§ 11-402. Rate making principles
Currentness
In general
(a) All title insurance rates shall be made in accordance with this section.
Rates reasonable and adequate for class of risks
(b) Rates shall be reasonable and adequate for the class of risks to which they apply.
Unfair discrimination between risks prohibited
(c) Rates may not discriminate unfairly between risks that involve essentially the same hazards and expense elements.
Factors for consideration in determining rates
(d) Due consideration shall be given to:
(1) past and prospective loss experience within and outside the State;
(2) a reasonable margin for profit and contingencies;
(3) the cost of participating insurance;
(4) the percentage to be allocated to reserve;
(5) operating expenses; and
(6) all other relevant factors fairly attributable to the business of title insurance.
Guarantees grouped by classifications
(e)(1) Guarantees may be grouped by classifications for the establishment of rates and minimum premiums.
(2) A special or unusual guarantee that is more hazardous to the title insurer than ordinary title guarantees because of an alleged irregularity or a difference in interpretation or application of law that might affect marketability of title, may be classified individually and separately according to the circumstances peculiar to each case.

Credits

Added by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997.
Formerly Art. 48A, § 242A.
MD Code, Insurance, § 11-402, MD INSURANCE § 11-402
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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