Sec. 31.02.01.10. Default Orders

A. This regulation does not apply to unauthorized insurers.

B. A hearing officer may issue a default order against a party other than the Administration that, after receiving proper notice, fails to appear at a hearing if:

(1) In a hearing arising out of a charging document, order, or notice issued by the Commissioner, the party failing to appear is the person against whom the charging document, order, or notice was issued;

(2) In a hearing arising out of a determination involving an administrative complaint, the party failing to appear is a necessary party under Regulation .07C of this chapter; or

(3) In any other contested case hearing, the party failing to appear is the person that requested the hearing.

C. In a hearing arising out of a charging document, order, or notice issued by the Administration, the default order shall:

(1) State the facts supporting the finding of proper notice to the person against whom the charging document, order, or notice was issued;

(2) Adopt the facts and violations of law as alleged by the Administration in its charging document, order, or notice as if by admission of the person against whom the charging document, order or notice was issued; and

(3) Adopt the sanction requested by the Administration at the hearing.

D. In a hearing arising out of a determination, including a determination involving an administrative complaint, the hearing officer shall:

(1) If the nondefaulting party is requesting that the determination be upheld, issue a default order that:

(a) States the facts supporting the finding of proper notice to the party failing to appear; and

(b) Upholds the determination; or

(2) If the nondefaulting party is requesting that the determination be reversed or modified:

(a) Allow the party to present its case as to why the determination should be reversed or modified; and

(b) Issue a default order that:

(i) States the facts supporting the finding of proper notice to the party failing to appear;

(ii) Makes any appropriate findings of fact or law; and

(iii) Orders relief as appropriate under the relevant provisions of the Health-General Article or Insurance Article, Annotated Code of Maryland.

E. In a hearing on a proposed examination report, the default order shall:

(1) State the facts supporting the finding of proper notice to the person that was examined;

(2) Adopt the facts and violations of law as alleged by the Administration in the proposed examination report as if by admission of the person that was examined; and

(3) Adopt the sanctions included with the proposed examination report.

F. The hearing officer shall serve the default order directly on the parties by certified mail.

G. Within 15 days after service of a default order, the party in default may submit to the hearing officer a written motion:

(1) Requesting that the default order be vacated or modified; and

(2) Stating the grounds for the request.

H. If the hearing officer finds that there is:

(1) Good cause to excuse the default, the hearing officer may:

(a) Vacate or modify the default order, and

(b) Schedule the case for further appropriate proceedings; or

(2) Not good cause to excuse the default, the Commissioner shall:

(a) Deny the motion, and

(b) Affirm the default order as the final order.