Sec. 31.04.19.06. Use of Noncompliant Forms

A. If an insurer uses a form which becomes effective under a file and use method and the form is found by the Commissioner to be noncompliant, the Commissioner may:

(1) Disapprove the form by:

(a) Giving notice of the disapproval;

(b) Showing cause for the disapproval; and

(c) Stating the effective date of the disapproval in the notice; and

(2) Impose a penalty as provided under Insurance Article, §4-113, Annotated Code of Maryland.

B. The Commissioner may remove file and use authority from an insurer upon a finding that the insurer has made inappropriate or noncompliant filings under this method with such frequency as to constitute a business practice.