998                               LAWS OF MARYLAND                        [CH. 553

3. INSURERS: AUTHORIZATION AND
GENERAL REQUIREMENTS

42.    Certificate of Authority Required; In General.

(1)   No person shall act as an insurer and no insurer shall engage
in the insurance business in this State except as authorized by a
subsisting certificate of authority issued to it by the Commissioner,
unless such transactions are expressly otherwise provided for in
this article.

(2)   No insurer shall have or maintain in Maryland any office,
representative, or other facilities for the solicitation or servicing of
any kind of insurance in any other state unless it is then authorized
to engage in the same kind of insurance business in this State.

43.    Exceptions, Certificate of Authority Requirement.

A certificate of authority shall not be required of an insurer with
respect to the following:

(1)   Transactions relative to its policies lawfully written in Mary-
land, or liquidation of assets and liabilities of the insurer (other
than collection of new premiums), all as resulting from its former
authorized operations in Maryland.

(2)   Transactions subsequent to issuance of a policy covering only
subjects of insurance not resident, located, or expressly to be per-
formed in Maryland at time of issuance, or covering property in the
course of transportation by land, air or water to, from or through
Maryland and including any preparation or storage incidental there-
to, and which coverage was lawfully solicited, written, and delivered
outside Maryland.

(3)   Transactions pursuant to surplus lines coverages lawfully
written pursuant to subtitle 13 of this article.

(4)   Reinsurance transactions, except as to domestic reinsurers.

44.    General Eligibility of Insurers.

(1)   To engage in the insurance business in this State an insurer
must be in compliance with this article and with its charter powers,
and must be an incorporated stock insurer, or an incorporated mutual
insurer, or a reciprocal insurer.

(2)   No foreign insurer the voting control or ownership of which
is held in whole or substantial part by any government or govern-
mental agency, or which is operated for or by any such government
or agency, shall be authorized to engage in the insurance business
in this State. Membership in a mutual insurer, or subscribership in a
reciprocal insurer, or ownership of stock of an insurer by the alien
property custodian or similar official of the United States, or super-
vision of an insurer by public insurance supervisory authority shall
not be deemed to be an ownership, control, or operation of the
insurer for the purposes of this subsection.

(3)   No Lloyds underwriters shall hereafter be organized in this
State and no foreign or alien Lloyds underwriters shall be author-
ized to engage in an insurance business in this State.

(i) Within the meaning of this subsection, the term "Lloyds