MARVIN MANDEL, Governor                               1877

(2) BEFORE THE COMMISSIONER ISSUES THE
LICENSE, HE SHALL INVESTIGATE THE RECORD OF THE
APPLICANT. IF THE APPLICANT IS HONEST AND TRUSTWORTHY,
THE COMMISSIONER SHALL ISSUE THE LICENSE.

REVISOR'S NOTE: This section presently appears as
Art. 48A, §254.

The references to "corporation" are deleted as
unnecessary in light of the definition of
"person" contained in Title 1 of this article.

The only other changes are in style.

6-506. MEMBERS IN MUTUAL INSURERS.

(A)        EACH POLICYHOLDER A MEMBER.

EACH POLICYHOLDER OF A DOMESTIC MUTUAL INSURER,
OTHER THAN THE HOLDER OF A REINSURANCE CONTRACT, IS A
MEMBER OF THE INSURER, WITH EVERY RIGHT AND OBLIGATION OF
MEMBERSHIP. EACH POLICY SHALL SPECIFY THIS FACT.

(B)   WHO MAY BE A MEMBER.

ANY INDIVIDUAL, GOVERNMENT OR GOVERNMENTAL AGENCY,
STATE OR POLITICAL SUBDIVISION, PUBLIC OR PRIVATE
CORPORATION, BOARD, ASSOCIATION, FIRM, ESTATE, TRUSTEE,
OR FIDUCIARY, OR OTHER PERSON MAY BE A MEMBER OF A
DOMESTIC, FOREIGN, OR ALIEN MUTUAL INSURER.

(C)   INDIVIDUAL ACTING IN REPRESENTATIVE CAPACITY.

AN OFFICER, STOCKHOLDER, TRUSTEE, OR LEGAL
REPRESENTATIVE OF A MEMBER MAY BE RECOGNIZED AS ACTING
FOR OR ON ITS BEHALF FOR THE PURPOSE OF THE MEMBERSHIP,
AND IS NOT PERSONALLY LIABLE ON THE INSURANCE CONTRACT
FOR ACTING IN THAT REPRESENTATIVE CAPACITY.

(D)   RIGHT OF MARYLAND CORPORATION TO BE MEMBER.

A MARYLAND CORPORATION MAY PARTICIPATE AS A MEMBER
OF A MUTUAL INSURER AS AN INCIDENTAL PURPOSE FOR WHICH
THE CORPORATION IS ORGANIZED.

REVISOR'S NOTE: This section presently appears as
Art. 48A, §257.

In subsection (d) of this section, the phrase
"and such right is as much granted as the
rights and powers expressly conferred" is
deleted as unnecessary.

The only other changes are in style.