The Administration is directed by the Maryland Insurance Commissioner who ensures that all insurance laws of the State are faithfully executed. The Commissioner authorizes and licenses insurance companies, producers, adjusters, and advisors for fire, casualty, life, accident, health, title, bail bonds, and other insurance and annuities. The Commissioner also approves all insurance policies offered for sale in Maryland by authorized companies, authorizes rating bureaus and advisory organizations, and approves or rejects the rates for most lines of insurance. With Senate advice and consent, the Commissioner is appointed by the Governor.
Periodically, the Administration examines all companies organized under the laws of Maryland and scrutinizes nonresident companies doing business in the State. The Administration also investigates and resolves consumer complaints and questions concerning insurance companies operating in Maryland (Code 1957, Art. 48A, secs. 14-16).
The Administration is organized into seven sections: Administration; Compliance and Enforcement; Consumer Complaint Investigation; Examination and Auditing; Insurance Fraud Division; Life and Health; and Property and Casualty.
HUMAN RESOURCES
LICENSING
The Section monitors the behavior of insurance companies in Maryland by reviewing sales practices, advertising and materials, underwriting practices, claims processing, and nonforfeiture values. The Section also investigates insurance producers and other unauthorized entities for compliance with insurance laws and regulations.
The Section works through three units: Appeals and Grievances; Life and Health; and Property and Casualty.
Under the Section are Company Licensing, Financial Analysis, Financial Examination, and Premium Tax.
In cooperation with the Department of State Police and the Office of the Attorney General, the Unit investigates and prosecutes individuals who commit insurance fraud.
Under the Section are four units: Administration; Managed Care; Medical Director and Private Review Agent Oversight; and Rates and Forms Review.
The Section oversees two units: Administration; and Rates and Forms Review.
ADMINISTRATION
Formed in 2001, Administration consist of three units: Fiscal Services; Human Resources; and Licensing.
Human Resources started as Professional and Consumer Services and adopted its present name in 2000. The office conducts administrative services, including personnel management, training, and facility support services.
Created in 1997, the Licensing office licenses insurance producers and other professionals (including bail bondsmen), and reviews and approves continuing education courses. The office also conducts background investigations of applicants for agent and broker certificates of qualification, as well as of officers, directors and major stockholders of insurance companies licensed in Maryland. The office verifies that agents and brokers meet continuing education requirements. For Maryland residents applying for licenses in other states, Licensing issues letters of certification or clearance.
PRODUCER LICENSING UNIT
The Producer Licensing Unit began as the Agent and Broker Licensing Unit and adopted its present name in July 2001. The Unit administers qualifying examinations for insurance producers, advisors, and public adjusters. To those who qualify, it issues certificates. The Unit also renews certificates of qualification, and processes insurance company requests for agent appointments and terminations.COMPLIANCE & ENFORCEMENT SECTION
The Compliance and Enforcement Section was formed in 2002 when the Agent Enforcement and Market Conduct Examination units of the Life and Health Section merged with those of the Property and Casualty Section.
CONSUMER COMPLAINT INVESTIGATION SECTION
In September 1997, the Consumer Complaint Investigation Section was formed by merging the Inquiry and Investigation units of the Life and Health Section and the Property and Casualty Section. The Consumer Complaint Investigation Section investigates and resolves complaints made by insurance policyholders, claimants, and beneficiaries. The Section also provides insurance information to the public.
EXAMINATION & AUDITING SECTION
The Examination and Auditing Section licenses all insurance companies conducting business in Maryland. It conducts financial examinations of licensed insurers as often as the Commissioner deems advisable, but at least every five years. In addition, the Section performs audits of the annual statements and quarterly and annual premium tax reports of insurers.
INSURANCE FRAUD DIVISION
The Insurance Fraud Division was established as a unit within the Department of Licensing and Regulation in 1992 by the Governor (Executive Order 01.01.1992.24). The unit transferred to the Office of the Governor in 1993 (Chapter 538, Acts of 1993; Executive Order 01.01.1994.16). In July 1995, the unit became part of the Maryland Insurance Administration.
LIFE & HEALTH SECTION
The Life and Health Section reviews every life, health and dental insurance policy used in Maryland. The Section also reviews each annuity contract and each health maintenance organization (HMO) subscriber and provider contract used in Maryland. To ensure that premium rates are not excessive, inadequate, or discriminatory, the Section reviews initial rate filings by insurers.
PROPERTY & CASUALTY SECTION
The Property and Casualty Section reviews policy forms for property, casualty, surety, mortgage guaranty and title insurance used in Maryland. The Section reviews rate filings to ensure the fairness of premium rates. The Section also reviews nonfinancial activities of property and casualty insurers.
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e-mail: mdmanual@mdarchives.state.md.us