1. A. With respect to hearings conducted on behalf of the Exchange, a hearing officer may issue a proposed default order against a party other than the Exchange that, after receiving proper notice, fails to appear at a hearing if:

   1. (1) Notice is issued by the Office, and the party failing to appear is the person against whom the notice was issued; or
   2. (2) In any other contested case hearing, the party failing to appear is the person that requested the hearing.

2. B. In a hearing arising out of a notice or determination issued by the Exchange, the proposed default order shall:

   1. (1) State the facts supporting the finding of proper notice to the person against whom the notice or determination was issued;
   2. (2) Adopt the facts and violations of law as alleged by the Exchange in its notice or determination as if by admission of the person against whom the charging document, order or notice was issued; and
   3. (3) Adopt the sanction requested by the Exchange at the hearing.
3. C. The hearing officer shall serve the proposed default order directly on the parties by certified mail.

4. D. Within 15 calendar days after service of a proposed default order, the party in default may submit to the Board a written motion:

   1. (1) Requesting that the proposed default order be vacated or modified; and
   2. (2) Stating the grounds for the request.

5. E. If the Board finds that there is:

   1. (1) Good cause to excuse the default, the Board may:

      1. (a) Vacate or modify the default order; and
      2. (b) Schedule the case for further appropriate proceedings; or

   2. (2) No good cause to excuse the default, the Board shall:

      1. (a) Deny the motion; and
      2. (b) Affirm the proposed default order as the final order.

Authority: Insurance Article, §§31-106(c)(1)(iv), 31-112, and 31-113; State Government Article, Title 10, Subtitle 2; Annotated Code of Maryland

Effective date: June 8, 2015 (42:11 Md. R. 725)

Regulation .01C amended effective November 29, 2021 (48:24 Md. R. 1025)

Chapter revised effective July 10, 2023 (50:13 Md. R. 513)

Regulation .01C amended effective August 18, 2025 (52:16 Md. R. 848)