3496

VETOES

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 492(c) and 494(g)(ii)

Annotated Code of Maryland

(1979 Replacement Volume and 1980 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A - Insurance Code

492.

As used in this subtitle, the following terms shall
have the respective meanings hereinafter set forth unless
the context shall otherwise require:

(c) "Control" (including the terms "controlling,"
"controlled by" and "under common control with") means the
possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a
person, whether through the ownership of voting securities,
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] 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-]
60 day period referred to in subsection (e) unless the