SPIRO T. AGNEW, Governor                        907

202.

The purpose of this subtitle is to subject certain persons and
insurers to the jurisdiction of the Commissioner, of proceedings
before the Commissioner, and of the courts of this State in suits
by or on behalf of the State and insureds or beneficiaries under
insurance contracts. The General Assembly declares that it is a sub-
ject of concern that many residents of this State hold policies of
insurance issued by persons and insurers not authorized to do in-
surance 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 in-
surance 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 unauthorized
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 sub-
stituted 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.

203.

(a) Any of the following acts in this State, effected by mail or
otherwise, is defined to be doing an insurance business in this State.
The venue of an act committed by mail is at the point where the
matter transmitted by mail is delivered and takes effect:

(1)    The making of or proposing to make, as an insurer, an in-
surance contract.

(2)    The making of or proposing to make, as guarantor or surety,
any contract of guaranty or suretyship as a vocation and not merely
incidental to any other legitimate business or activity of the guar-
antor or surety.

(3)    The taking or receiving of any application for insurance.

(4)    The receiving or collection of any premium, commission,
membership fees, assessments, dues or other consideration for any
insurance or any part thereof.

(5)    The issuance or delivery of contracts of insurance to resi-
dents of this State or to persons authorized to do business in this
State.