Marvin Mandel, Governor                          1003

fine the term "material" as used in this subtitle in subdivision (2)
of subsection (b) Section 492, subdivision (c) subsection (b) Sec-
tion 495, subsection (c) Section 495, subsection (i) Section 495, sub-

division (j) Section 495, and elsewhere that said term may be

used in this subtitle WHERE THE TERM MAY BE USED either
presently or hereafter; and by the repeal of subsection (k) Section
495, to remove the restriction of the definition of said LIMITA-
TION OF THE DEFINITION OF THE term to subsection (k)
Section 495 of this subtitle.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 492 of Article 48A of the Annotated Code of Maryland
(1968 Replacement Volume 1969 SUPPLEMENT) title "Insurance
Code," subtitle "Maryland Insurance Acquisition ACQUISITIONS,
Disclosure and Control Act," be and it is hereby repealed and re-
enacted with amendments to read as follows:

492.

As used in this subtitle, the following terms shall have the respec-
tive meanings hereinafter set forth unless the context shall other-
wise require:

(a)    An "affiliate" is a person that directly, or indirectly, through
one or more intermediaries, controls, or is controlled by, or is under
the common control with another person.

(b)    "Company" means any corporation, partnership, trust, recip-
rocal, joint stock company, association, society or similar organiza-
tion.

(c)    "Control" (including the terms "controlling," "controlled
by" and "under common control with") means the possession, direct
or indirect, of the power to direct or cause the direction of the man-
agement and policies of a person, whether through the ownership of
voting securities, through the ownership of securities convertible
into voting securities, by contract other than a commercial contract
for goods or non-management services, or otherwise. Control shall
be presumed to exist if any person, directly or indirectly, owns, con-
trols, holds with power to vote, or holds proxies, representing
fifteen per cent (15%) or more of the voting securities of any other
person; provided, however, that such control shall not be presumed
to exist where proxies have been obtained by an official of such per-
son solely in connection with voting at any meeting of the owners of
such person. This presumption may be rebutted by showing that
control does not exist in fact. Notwithstanding the presumption of
control, the Commissioner, upon application of the insurance com-
pany, may determine that the insurance company or company is not
controlled by the person presumed to control it. In addition, the
Commissioner, after notice and an opportunity to be heard, may
determine that a person not presumed to have control does control
an insurance company or company.

(d)    "Department" means the Insurance Department, the Insur-
ance Commissioner or his authorized representative.

(e)    "Insurance company or insurer" means a company qualified
and licensed by the Department to transact the business of insurance
in this State.