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612 laws of Maryland [Ch. 173
(h) Failure to file the registration statement or to keep the
registration statement current shall constitute a violation of this
subtitle.
(I) ANY PERSON MAY FILE WITH THE COMMISSIONER
A DISCLAIMER OF AFFILIATION WITH ANY AUTHORIZED
INSURER OR SUCH A DISCLAIMER MAY BE FILED BY SUCH
INSURER OR ANY MEMBER OF AN INSURANCE HOLDING
COMPANY SYSTEM. THE DISCLAIMER SHALL FULLY DIS-
CLOSE ALL MATERIAL RELATIONSHIPS AND BASES FOR
AFFILIATION BETWEEN SUCH PERSON AND SUCH IN-
SURER AS WELL AS THE BASIS FOR DISCLAIMING SUCH
AFFILIATION. AFTER A DISCLAIMER HAS BEEN FILED,
THE INSURER SHALL BE RELIEVED OF ANY DUTY TO REG-
ISTER OR REPORT UNDER THIS SECTION WHICH MAY
ARISE OUT OF THE INSURER'S RELATIONSHIP WITH SUCH
PERSON UNLESS AND UNTIL THE COMMISSIONER DISAL-
LOWS SUCH A DISCLAIMER. THE COMMISSIONER SHALL
DISALLOW SUCH A DISCLAIMER ONLY AFTER FURNISHING
ALL PARTIES IN INTEREST WITH NOTICE AND OPPORTUN-
ITY TO BE HEARD, AND AFTER MAKING SPECIFIC FIND-
INGS OF FACT TO SUPPORT SUCH DISALLOWANCE,
(J) ANY SUCH MATERIAL TRANSACTION WHICH, AFTER
NOTICE AND AN OPPORTUNITY TO BE HEARD, IS FOUND
TO BE NOT IN CONFORMITY WITH THIS SECTION SHALL
CONSTITUTE A VIOLATION OF THIS SUBTITLE, AND IN AD-
DITION TO THE PENALTIES CONTAINED IN SECTION 400,
MAY BE SET ASIDE AND RESCINDED AT THE INITIATIVE
OF THE COMMISSIONER OR OTHERWISE UNDER APPLICA-
BLE LAW; PROVIDED, HOWEVER, THAT NOTICE OF ANY
PROPOSED ACTION BY THE COMMISSIONER TO SET ASIDE
OR RESCIND A MATERIAL TRANSACTION SHALL BE GIVEN
TO THE INSURER WITHIN NINETY DAYS OF THE DATE
SUCH MATERIAL TRANSACTION IS COMMUNICATED TO
THE COMMISSIONER.
(K) AS USED IN THIS SUBSECTION "MATERIAL" SHALL
INCLUDE ANY ASSET CHANGE WHICH EXCEEDS IN VALUE
THE LESSER OF (1) FIVE (5) PERCENT OF SUCH INSURER'S
SURPLUS AS REGARDS POLICYHOLDERS, OR (2) THE NET
GAIN FROM OPERATIONS OF A LIFE INSURER OR THE NET
INVESTMENT INCOME OF AN INSURER OTHER THAN A
LIFE INSURER, DETERMINED AS OF THE 31ST DAY OF
DECEMBER NEXT PRECEDING.
496.
(a) Transactions by insurers with their affiliates are subject to
the following standards:
(1) The terms shall be fair and reasonable in consideration of
the purposes of this act;
(2) The books, accounts, and records of each party shall be so
maintained as to clearly and accurately disclose the precise nature
and details of the transactions; and
(3) The insurer's assets and surplus as regards policyholders
following any such transactions including dividends or distributions
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