380/Maryland Manual

The Insurance Division was created in 1872 as
the Insurance Department under the Comptroller ofrne
Treasury (Chapter 388, Acts of 1872). Renamed the
State Insurance Department, it became an independent
agency in 1878 (Chapter 106, Acts of 1878). In 1970,
the Division by its present name was placed within the
Department ofTJcensing and Regulation (Chapter 402,
Acts of 1970).
The Division is directed by the Scare Insurance
Commissioner who ensures that all laws of the State
governing insurance companies or relating to the
business of insurance are faithfully executed. The
Commissioner authorizes and licenses insurance com-
panies, agents, brokers, approved attorneys, and ad-
visors for fire, casualty, life, accident, health, ride and
other insurance and annuities. The Commissioner also
approves all insurance policies offered for sale in
Maryland by authorized companies, authorizes raring
bureaus and advisory organizations, and approves or
rejects the rates for most lines of insurance.
Periodically the Division examines all companies
organized under the laws of Maryland and scrutinizes
from rime to rime nonresident companies doing busi-
ness in the State. The Division also investigates and
resolves consumer complaints and questions concern-
ing insurance companies doing business in the State
(Code 1957, Art. 48A, sees. 14-16).
The Division is organized into three sections:
Operations, Life and Health, and Property and
Casualty The Operations Section oversees Con-
sumer Affairs, Examination and Auditing, and
Licensing and Enforcement.
The State Insurance Commissioner is appointed
by the Secretary of Licensing and Regulation with
the approval of the Governor and Senate advice and
consent. Authorization for the Insurance Division
and the State Insurance Commissioner continues
until July 1,1993 (Code 1957, Art. 48A).

DIVISION OF FINANCIAL
REGULATION

The Division of Financial Regulation includes
the Scare Bank Commissioner, the Division of
Savings and Loan Associations, the State of
Maryland Deposit Insurance Fund Corporation,
the Commissioner of Consumer Credit, and the
Financial Audit Services Team (FAST).

STATE BANK COMMISSIONER
Margie H. Muller, State Bank Commissioner
Henry L. Bryson, Deputy State Bank Commissioner

501 St. Paul Place
Baltimore, MD 21202 333-6330
toll free: 1-800-492-7521

The office of the State Bank Commissioner was
created in 1910 (Chapter 219, Acts of 1910). The

Commissioner's office has general supervision over
all banking institutions in the State except national
banks. It must examine each institution at least once
every calendar year, at such other times as the
Commissioner deems expedient, and at any rime
upon request of the board of directors of the institu-
tion. These examinations may be made in conjunc-
tion with federal regulatory agencies.
Every bank, trust company and mutual savings
bank is required to submit under oath to the State
Bank Commissioner at least two reports in each
calendar year. The reports must exhibit in detail the
resources and liabilities of the institution. These
reports are published in local newspapers.
All new State banking institutions must incor-
porate under the supervision of the State Bank
Commissioner and must obtain a certificate before
opening for business. The Commissioner must ap-
prove all applications for a branch office made by a
State bank, trust company, or mutual savings bank,
and must pass upon all amendments to their
charters as well as the establishment of affiliates and
subsidiaries. The Commissioner also must approve
any mergers or voluntary liquidations and acquisi-
tions of State-chartered or national banks by out-
of-scare bank holding companies. On June 30 of
each year, the Commissioner submits a written
report to the Governor (Code Financial Institutions
Article, sees. 2-101 through 5-1007).

Under the Credit Union Law, any seven or more
Maryland residents sharing common occupational,
residential or social experiences or characteristics
may act as incorporators to form a credit union and
apply co the Scare Bank Commissioner for permis-
sion to organize.
The Scace Bank Commissioner supervises all
Stare-chartered credit unions and is required to
examine these institutions at least once each year.
All credit unions must report annually to the Com-
missioner (Code Financial Institutions Article, sees.
6-101 through 6-704).
State-chartered credit unions may be insured by
the National Credit Union Administration or the
Credit Union Insurance Corporation (Chapter 658,
Acts of 1973). The Stare Bank Commissioner must
certify to the Corporation a credit union's financial
affairs, solvency management, and directorship as
being approved for insurance of its members' shares
and deposit accounts (Code Financial Institutions
Article, sees. 7-101 through 7-117).
The Sellers of Money Orders and Traveler's
Checks Law requires the State Bank Commissioner
to supervise and regulate persons issuing checks,
drafts, and money orders for a fee. Persons who
wish to transact such business in Maryland must
procure an annual license from the Commissioner.
All such persons must report periodically to the
Commissioner on agent charges, financial structure,
and other conditions relative to their functions