1876

LAWS OF MARYLAND

[Ch. 311

ARTICLES OF INCORPORATION AND ARTICLES OF AMENDMENT
ARE NOT EFFECTIVE [[UNTIL]] UNLESS THE COMMISSIONER, BY
WRITTEN ENDORSEMENT ON [[IT, APPROVES]] THEM, HAS
APPROVED THE ARTICLES AS BEING IN ACCORDANCE WITH THE
INSURANCE LAWS OF THE STATE.

REVISOR'S NOTE: This section presently appears as
Art. 48A, §251.

In subsection (b) of this section,      the word

"effective" is substituted for     the word

"operative" to conform to general      usage in
this article.

The only other changes are in style.

6-505. PREREQUISITES TO SOLICITATION OF APPLICATIONS OF
PREMIUMS BY PROSPECTIVE MUTUAL INSURER.

(A)  SOLICITATIONS OF APPLICATIONS OR PREMIUMS FOR
PROSPECTIVE POLICIES.

A PERSON PROPOSING TO FORM A MUTUAL INSURER MAY NOT
SOLICIT IN THE STATE APPLICATIONS OR PREMIUMS FOR
POLICIES OF THE PROSPECTIVE INSURER UNTIL THE PROSPECTIVE
INSURER HAS FURNISHED THE COMMISSIONER WITH EVERY
PARTICULAR RELATING TO THE METHODS AND PROPOSED COST OF
THE PROMOTION.

(B)    FUNDS REQUIRED BEFORE SOLICITING APPLICATIONS.

(1) BEFORE A PERSON SOLICITS APPLICATIONS OR
PREMIUMS FOR POLICIES OF A PROSPECTIVE MUTUAL INSURER, HE
SHALL HAVE IN HIS POSSESSION FUNDS ACQUIRED IN ACCORDANCE
WITH THE PROVISIONS OF ARTICLE 48A, § 266 OF THE CODE IN
THE AMOUNT OF:

(I)     $125,000, IF HE IS TO SOLICIT
APPLICATIONS OR PREMIUMS FOR ANY ONE KIND OF INSURANCE
BUSINESS, AS SET OUT IN ARTICLE 48A, § 48 OF THE CODE; OR

(II)   $250,000, IF THE SOLICITATION IS TO BE
FOR TWO OR MORE KINDS OF INSURANCE BUSINESS.

(2) THE FUNDS SHALL BE HELD IN CASH OR IN
INVESTMENTS AUTHORIZED FOR CAPITAL AND RESERVE UNDER
SUBTITLE 7 OF ARTICLE 48A OF THE CODE.

(C)    LICENSE REQUIRED; INVESTIGATION OF APPLICANT'S
RECORD.

(1) A LICENSE FROM THE COMMISSIONER IS
REQUIRED FOR ANY PERSON PROPOSING TO FORM A MUTUAL
INSURER.