652                                LAWS OF MARYLAND                       [CH. 461

ment company or owned or controlled subsidiary of such insurer,
and each rating organization, as often as he deems advisable. He
shall so examine each domestic insurer not less frequently than every
[four (4)] three (3) years. YEARS IN THE CASE OF LIFE IN-
SURERS, AND THREE (3) YEARS IN THE CASE OF OTHER
THAN LIFE INSURERS. Examination of an alien insurer may be
limited to its insurance transactions and affairs in the United States.
Examination of a reciprocal insurer may also include examination
of its attorney in fact insofar as the transactions of the attorney in
fact relate to the insurer.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1965.

Approved April 8, 1965.

CHAPTER 461
(Senate Bill 20)

AN ACT to repeal and re-enact, with amendments, Section 271 (c)
of Article 48A of the Annotated Code of Maryland (1964 Replace-
ment Volume), title "Insurance Code," subtitle "17. Stock and
Mutual Insurers," and to add new Section 272(e) to the said
Article and subtitle of the Code, to follow immediately after
Section 272 (d) thereof, to change the requirements and conditions
for approval of articles of consolidation or merger of stock insur-
ance companies and for approval of agreements of consolidation
or merger of mutual insurance companies by the State Insurance
Commissioner.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 271 (c) of Article 48A of the Annotated Code of Mary-
land (1964 Replacement Volume), title "Insurance Code," subtitle
"17. Stock and Mutual Insurers," be and it is hereby repealed and
re-enacted, with amendments; and that a new Section 272(e) be and
it is hereby added to said Article and subtitle of the Code, to follow
immediately after Section 272(d) thereof, and all to read as follows:

271.

(c) [No such articles of consolidation or merger shall be opera-
tive until the Commissioner, by written endorsement thereon, ap-
proves the articles as being in accordance with the insurance laws of
Maryland.] Prior to approval of the articles of consolidation or
merger, the Commissioner shall conduct such examination and review
of the affairs of companies involved in the consolidation or merger
as he finds to be necessary or to be desirable and may hold a hearing
upon the proposed consolidation or merger after giving such notice
as he deems appropriate. If the Commissioner finds the articles to be
in accordance with this Code and he is satisfied that the policyholders
in the surviving or consolidated insurer are protected through ade-
quate reserves and assets for losses and claims then anticipated, he
shall approve the articles by written endorsement thereon before the