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Session Laws, 1969
Volume 692, Page 623   View pdf image
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MARVIN MANDEL, Governor                        623

land (1968 Supplement), title "Insurance Code," subtitle "Un-
authorized Insurers," to correct certain technical errors contained
therein.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 202, 208 (a) and 211A of Article 48A of the Anno-
tated Code of Maryland (1968 Supplement), title "Insurance Code,"
subtitle "Unauthorized Insurers," be and they are hereby repealed
and re-enacted, with amendments, to read as follows:

202.

The purpose of this subtitle is to subject certain persons and
insurers to the jurisdiction of the Commissioner, [of] in proceed-
ings before the Commissioner, and [of] to the courts of this State
in suits by or on behalf of the State and insureds or beneficiaries un-
der insurance contracts. The General Assembly declares that it is a
subject of concern that many residents of this State hold policies of in-
surance issued by persons and insurers not authorized to do insurance
business in this State, thus presenting to such residents the often
insuperable obstacle of asserting their legal rights under such
policies in forums foreign to them under laws and rules of practice
with which they are not familiar. The General Assembly declares
that it is also concerned with the protection of residents of the State
against acts by persons and insurers not authorized to do an insur-
ance business in this State, by the maintenance of fair and honest
insurance markets, by protecting the premium tax revenues of this
State, by protecting authorized persons and insurers, which are
subject to strict regulation, from unfair competition by unauthor-
ized persons and insurers and by protecting against the evasion of
the insurance regulatory laws of the State. In furtherance of such
State interest, the General Assembly herein provides methods for
substituted service of process upon such persons or insurers in any
proceeding, suit or action in any court and substitute service of
any notice, order, pleading or process upon such persons or insurers
in any proceeding before the Commissioner to enforce or effect full
compliance with the insurance and tax statutes of the State, and
declares in so doing it exercises its power to protect residents of
this State and to define what constitutes doing an insurance business
in this State, and also exercises powers and privileges available to
the State by virtue of Public Law 15, 79th Congress of the United
States, (Chapter 20, 1st Sess., S. 340), as amended, which declares
that the business of insurance and every person engaged therein
shall be subject to the laws of the several states.

208.

(a) Except as to premiums on lawfully procured surplus lines
insurance and premiums on independently procured insurance on
which a tax has been paid pursuant to Section [211] 209 of this
Article, every unauthorized insurer shall pay to the Commissioner
before March 1 next succeeding the calendar year in which the
insurance was so effectuated, continued or renewed a premiu