1004                            Laws of Maryland                       Ch. 430

(f)    "Insurance holding company" means any company which
directly or indirectly controls an insurance company or controls any
other company which controls an insurance company.

(g)    "Insurance holding company system" consists of two or more
affiliated persons, one or more of which is an insurance company.

(h) "Material" shall include any asset change which exceeds in
value the lesser of (1) five (5) per cent of such insurer's surplus as
regards policy holders, or (2) the net gain from operations of a life
insurer or the net investment income of an insurer other than a life
insurer, determined as of the 31st day of December next preceding.

[(h)] (i) "Person" means an individual, partnership, corpora-
tion, firm, association, joint stock company, business trust, unincor-
porated organization, any similar entity or any group or combination
of the foregoing acting in concert.

[(i)] (j) "Subsidiary" of a specified person is an affiliate con-
trolled by such person directly, or indirectly, through one or more
intermediaries.

Sec. 2. Be it further enacted, That Section 495 (k) of Article
48A be and it is hereby repealed:

[(k) As used in this subsection "material" shall include any
asset change which exceeds in value the lesser of (1) five (5) per
cent of such insurer's surplus as regards policyholder's, or (2) the
net gain from operations of a life insurer or the net investment
income of any insurer other than a life insurer, determined as of the
31st day of December next preceding.]

Sec. 3. And be it further enacted, That this Act shall take effect
July 1, 1970.

Approved April 28, 1970

CHAPTER 430
(House Bill 570)

AN ACT to repeal and re-enact with amendments Section 270 of
Article 48A of the Annotated Code of Maryland (1968 Replace-
ment Volume) changing the surplus requirements for mutual in-
surers converting to stock insurers when such insurers commenced
doing business in the State of Maryland on or after July 1, 1966.
, TITLE "INSURANCE CODE," SUBTITLE "STOCK AND
MUTUAL INSURERS," TO CHANGE THE SURPLUS RE-
QUIREMENTS FOR DOMESTIC MUTUAL INSURERS CON-
VERTING TO STOCK INSURERS.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 270 of Article 48A of the Annotated Code of Maryland
(1968 Replacement Volume), TITLE "INSURANCE CODE," SUB-
TITLE "STOCK AND MUTUAL INSURERS," be and the same is
hereby repealed and re-enacted with amendments to read as follows: