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Session Laws, 1963
Volume 671, Page 1126   View pdf image (33K)
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1128                           LAWS OF MARYLAND                      [CH. 553

(b)   The Commissioner shall approve such agreement within a
reasonable time after filing if he finds it to be fair and equitable to
each domestic insurer involved, and that such reinsurance if effec-
tuated would not substantially reduce the protection or service to its
policyholders. If the Commissioner does not so approve, he shall so
notify each insurer involved in writing specifying his reasons there-

(c)   The plan and agreement for such reinsurance must be ap-
proved by vote of not less than two-thirds of each domestic mutual
insurer's members voting thereon at meetings of members called for
the purpose, pursuant to such reasonable notice and procedure as the
Commissioner may approve. If a life insurer, right to vote may be
limited to members whose policies are other than term or group
policies, and have been in effect for more than one year.

(d)   If for reinsurance of a mutual insurer in a stock insurer, the
agreement must provide for payment in cash to each member of the
insurer entitled thereto as upon conversion of such insurer pursuant
to section 270, of his equity in the business reinsured as determined
under a fair formula approved by the Commissioner, which equity
shall be based upon such member's equity in the reserves, assets
(whether or not "admitted" assets), and surplus, if any, of the mu-
tual insurer to be taken over by the stock insurer.

275.    Solicitations in Other States.

(a)   No domestic insurer shall knowingly solicit insurance busi-
ness in any reciprocating state in which it is not then licensed as an
authorized insurer.

(b)   This section shall not prohibit advertising through publica-
tion and radio, television and other broadcasts originating outside
such reciprocating state, if the insurer is licensed in a majority of
the states in which such advertising is disseminated, and if such
advertising is not specifically directed to residents of such reciprocat-
ing state.

(c)   This section shall not prohibit insurance, covering persons
or risks located in a reciprocating state, under contracts solicited and
issued in states in which the insurer is then licensed. Nor shall it
prohibit insurance effectuated by the insurer as an unauthorized in-
surer in accordance with the laws of the reciprocating state.

(d)   A "reciprocating" state, as used herein, is one under the laws
of which a similar prohibition is imposed upon and enforced against
insurers domiciled in that state.

(e)   The Commissioner shall suspend or revoke the certificate of
authority of a domestic insurer found by him, after a hearing, to
have violated this section.


276.    Scope of Subtitle—Existing Insurers.

(a)   Except as otherwise expressly provided in this subtitle, the
provisions of this subtitle shall apply to all reciprocal insurers, both
foreign and domestic.

(b)   Existing authorized reciprocal insurers shall after the effec-
tive date of this article comply with the provisions of this subtitle,


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Session Laws, 1963
Volume 671, Page 1126   View pdf image (33K)
 Jump to  

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