MARVIN MANDEL, Governor                                 1901

Senate Bill No. 658 -Insurance Commissioner - Cease and Desist Orders

AN ACT to add a new Section 55(3) to Article 48A of the Annotated Code of
Maryland (1972 Replacement Volume), title "Insurance Code," subtitle
"Insurers: Authorization and General Requirements," to follow immediately
after Section 55(2) thereof, to permit the Insurance Commissioner to issue a
cease and desist order [[where there are grounds for the Commissioner to
refuse to issue or renew or suspend or revoke an insurer's certificate of
authority and the Commissioner further finds that the insurer's continued
writing of insurance would result in irreparable harm, and generally relating to
the procedures of issuing such cease and desist orders]] against an insurer under
certain conditions.

June 1. 1-973.

Honorable William S. James

President of the Senate

State House

Annapolis, Maryland 21404

Dear Mr. President:

In accordance with Article II, Section 17, of the Maryland Constitution, I have
today vetoed Senate Bill 658.

This bill authorizes the Insurance Commissioner, under certain conditions, to
issue, without notice and before a hearing, an order requiring the insurer to cease
and desist from writing any further insurance in the State.

House Bill 534, which was enacted by the General Assembly, and signed by me
on May 24, 1973, accomplishes the same purpose.

Additionally, the Attorney General has advised me, in an opinion which is to be
considered part of this message, of a conflict in form between Senate Bill 658 and
House Bill 534.

Because of the conflict in form between Senate Bill 658 and House Bill 534. and
because House Bill 534 accomplishes the same purpose as Senate Bill 658, I have
decided to veto Senate Bill 658.

Sincerely,

/s/ Marvin Mandel
Governor

Letter from Attorney General on Senate Bill No. 658

April 26, 1973

The Honorable Marvin Mandel

Governor of Maryland

State House

Annapolis, Maryland 21404

Re: Senate Bill No. 658 and
House Bill No. 534

Dear Governor Mandel:

Both Senate Bill No. 658 and House Bill No. 534 would enact a new
subsection 55(3) to Article 48A of the Annotated Code of Maryland (1972
Replacement Volume). Both bills would authorize the Insurance Commissioner to
issue a cease and desist order, without notice and before hearing, in certain cases
where an insurer is in a precarious financial condition. The texts of both bills
generally are identical. However, Senate Bill No. 658 would authorize a cease and