Md. Code Regs. 31.05.11.17

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.05.11.17 - Exemptions and Effective Dates

A. Upon written application of any insurer, the Commissioner may grant an exemption from compliance with provisions of this chapter if:

(1) The exemption is not prohibited by statute; and

(2) The Commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organizational hardship upon the insurer.

B. The Commissioner may grant exemption at any time and from time to time for a specified period or periods.

C. The insurer may request in writing a hearing on its application for an exemption within 10 days from a denial of an insurer's written request for an exemption from this chapter.

D. The hearing requested in §C of this regulation, shall be held in accordance with COMAR 31.02.01.

E. Domestic insurers retaining a certified public accountant on the effective date of this chapter who qualify as independent shall comply with this chapter for the year ending December 31, 2010, and each year thereafter, unless the Commissioner permits otherwise:

F. Domestic insurers not retaining a certified public accountant on the effective date of this chapter who qualifies as independent shall meet the following schedule for compliance unless the Commissioner permits otherwise.

(1) As of December 31, 2010, file with the Commissioner an audited financial report; and

(2) For the year ending December 31, 2010, and each year thereafter, file with the Commissioner all reports and communication required by this regulation.

G. Foreign insurers shall comply with this regulation for the year ending December 31, 2010, and each year thereafter, unless the Commissioner permits otherwise.

H. The requirements of Regulation .06D of this chapter shall become effective July 1, 2010, and shall be in effect for audits of the year beginning January 1, 2010, and thereafter.

I. The requirements of Regulation .13 of this chapter are to be in effect January 1, 2010.

J. An insurer or group of insurers that is not required pursuant to Regulation .13 of this chapter to have independent audit committee members or only a majority of independent audit committee members, as opposed to a supermajority, because the total written and assumed premium is below the threshold and subsequently becomes subject to one of the independence requirements due to changes in premium, shall have 1 year following the year the threshold is exceeded, but not earlier than January 1, 2010, to comply with the independence requirements.

K. An insurer that becomes subject to one of the independence requirements of Regulation .13 of this chapter as a result of a business combination shall have 1 calendar year following the date of acquisition or combination to comply with the independence requirements.

L. Reporting Requirements.

(1) The requirements of Regulation .15 of this chapter are effective beginning with the reporting period ending December 31, 2010, and each year thereafter.

(2) An insurer or group of insurers that is not required to file a report because the total written premium is below the threshold and subsequently becomes subject to the reporting requirements, shall have 2 years following the year the threshold is exceeded (but not earlier than December 31, 2010) to file a report.

(3) An insurer acquired in a business combination shall have 2 calendar years following the date of acquisition or combination to comply with the reporting requirements.

M. The requirements of Regulation .14 of this chapter are effective as of January 1, 2019. If an insurer or group of insurers that are exempt from Regulation .14 of this chapter no longer qualifies for that exemption, it shall have one year after the year the threshold is exceeded to comply with the requirements of this chapter.

Md. Code Regs. 31.05.11.17

Regulation .17 recodified from .16 effective 45:24 Md. R. 1163, eff. 12/6/2018