1878

LAWS OF MARYLAND

[Ch. 311

6-507. VOTING BY MEMBERS OF MUTUAL INSURERS.

(A)   MEMBERS ENTITLED TO VOTE.

EACH MEMBER OF A DOMESTIC MUTUAL INSURER IS ENTITLED
TO ONE VOTE, OR TO THE NUMBER OF VOTES THE BYLAWS
PROVIDE, BASED ON:

(1)   THE INSURANCE IN FORCE;

(2)   THE NUMBER OF POLICIES HELD; OR

(3)   THE AMOUNT OF PREMIUM PAID.

(B)   POLICY HOLDERS.

UNDER ANY GROUP POLICY, ONLY THE POLICYHOLDER SHALL
BE A MEMBER OF THE MUTUAL INSURER ENTITLED TO VOTE AT THE
MEETINGS OF THE MUTUAL INSURER.

REVISOR'S NOTE: This section presently appears as
Art. 48A, §258.

In subsection (b) of this section, for
purposes of conformity, the term "mutual
insurer" is substituted for "company."

The only other changes are in style.

6-508. NUMBER OF DIRECTORS.

THE BOARD OF DIRECTORS OF A DOMESTIC INSURER SHALL
BE COMPOSED OF AT LEAST NINE MEMBERS.

REVISOR'S NOTE: This section presently appears as
Art. 48A, §266A.

The only changes are in style.

6-509. CONTINGENT LIABILITY OF MEMBERS OF MUTUAL
INSURERS.

(A) PROPORTIONATE LIABILITY FOR DISCHARGE OF
OBLIGATIONS.

EXCEPT AS PROVIDED IN ART. 48A, §262 OF THE CODE
WITH RESPECT TO NONASSESSABLE POLICIES, EACH MEMBER OF A
DOMESTIC MUTUAL INSURER OTHER THAN A LIFE INSURER SHALL
BE CONTINGENTLY LIABLE ON A PRO RATA BASIS FOR THE
DISCHARGE OF THE LIABILITIES OF THE INSURER. THE
CONTINGENT LIABILITY SHALL BE EXPRESSED IN THE POLICY.

(B) EFFECT OF TERMINATION OF POLICY.