MARVIN MANDEL, Governor                          603

ume and 1968 Supplement), title "Insurance Code," to follow im-
mediately after Section 490 thereof, and to be under the new sub-
title "Maryland Insurance Acquisitions Disclosure and Control
Act," to require persons seeking to acquire domestic insurance
companies to disclose information with respect to such acquisi-
tion, to require domestic insurers to disclose material transactions
and relationships between the insurer and its affiliates, to require
disclosure of information concerning changes in the control of do-
mestic insurers and imposing penalties for failure to comply with
the provisions of this Act.

AN ACT TO ADD NEW SECTIONS 491 THROUGH 503, INCLU-
SIVE, TO ARTICLE 48A OF THE ANNOTATED CODE OF
MARYLAND (1968 REPLACEMENT VOLUME AND 1968
SUPPLEMENT), TITLE "INSURANCE CODE," TO FOLLOW
IMMEDIATELY AFTER SECTION 490 THEREOF, AND TO
BE UNDER THE NEW SUBTITLE "MARYLAND INSUR-
ANCE ACQUISITION DISCLOSURE AND CONTROL ACT,"
TO AUTHORIZE DOMESTIC INSURERS TO INVEST IN OR
ACQUIRE SUBSIDIARIES ENGAGED IN VARIOUS BUSI-
NESSES, TO REQUIRE PERSONS SEEKING TO ACQUIRE
DOMESTIC INSURANCE COMPANIES OR CERTAIN INSUR-
ANCE HOLDING COMPANIES TO DISCLOSE INFORMA-
TION WITH RESPECT TO SUCH ACQUISITION, TO RE-
QUIRE INSURERS WHICH ARE PART OF INSURANCE
HOLDING COMPANY SYSTEMS TO DISCLOSE MATERIAL
TRANSACTIONS AND RELATIONSHIP BETWEEN THE IN-
SURER AND ITS AFFILIATES, TO REQUIRE EVERY LI-
CENSED INSURER WHICH IS A MEMBER OF AN INSURANCE
HOLDING COMPANY SYSTEM TO REGISTER WITH THE
COMMISSIONER, TO PROVIDE STANDARDS FOR TRANSAC-
TIONS BY INSURERS WITH THEIR AFFILIATES, TO RE-
QUIRE ADVANCE NOTICE OF THE PROPOSED PAYMENT OF
CERTAIN DIVIDENDS, TO IMPOSE PENALTIES FOR FAIL-
URE TO COMPLY WITH THE PROVISIONS OF THIS ACT,
AND RELATING GENERALLY TO INSURERS AND THEIR
RELATIONSHIP WITH AFFILIATES.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 491 to 503 inclusive be and they are hereby added to
Article 48A of the Annotated Code of Maryland (1968 Replacement
Volume and 1968 Supplement) title "Insurance Code," to follow im-
mediately after Section 490 thereof, and to be under the new sub-
title "Maryland Insurance Acquisitions Disclosure and Control Act,"
and to read as follows:

MARYLAND INSURANCE ACQUISITIONS DISCLOSURE

AND CONTROL ACT
491.

(a) It is hereby found and declared that the public interest and
the interest of policyholders and shareholders STOCKHOLDERS
are or may be adversely affected when:

(1) control of an insurer is sought by persons who would utilize
such control adversely to the best interest of policyholders or sharp
holders STOCKHOLDERS;