2658

LAWS OF MARYLAND

Ch. 710

through the ownership of securities convertible into voting
securities, by contract other than a commercial contract for
goods or nonmanagement services, or otherwise, WHETHER OR
NOT SUCH POWER IS EXERCISED OR SOUGHT TO BE EXERCISED.
Control shall be presumed to exist if any person, directly
or indirectly, owns, controls, holds with the power to vote,
or holds proxies, representing [fifteen] 15 percent 10
percent [(15%)] or more of the voting securities of any
other person[; provided, however, that such]. HOWEVER, THE
control [shall] MAY not be presumed to exist where proxies
have been obtained by an official of such person solely in
connection with voting at any meeting of the owners of such
person. This presumption may be rebutted by [showing]
ESTABLISHING BY A PREPONDERANCE OF THE EVIDENCE that control
does not exist in fact. Notwithstanding the presumption of
control, the Commissioner, upon application of the insurance
company, 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.

494.

(g) (ii) Effectuation of or any attempt to effectuate
an acquisition of, ACTUAL OR PRESUMED, control of, or merger
with, a domestic insurer or insurance holding company which
controls one or more domestic insurers within the sixty-day
period referred to in subsection (e) unless the Commissioner
has given his approval thereto, or after disapproval of such
acquisition of control or merger by the Commissioner, shall
constitute a violation of this subtitle.

SECTION 2. AND BE IT FURTHER ENACTED, That the
provisions of this Act do not apply to any person who,
directly or indirectly, owns, controls, holds with power to
vote, or holds proxies, representing more than 10 percent
and less than 15 percent of the voting securities of any
other person on or before the date of the introduction of
this Act.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act is
hereby declared to be an emergency measure and necessary for
the immediate preservation of the public health and safety
and having been passed by a yea and nay vote supported by
three-fifths of all the members elected to each of the two
Houses of the General Assembly, the same shall take effect
from the date of its passage.

Approved May 19, 1981.