3674

VETOES

AN ACT concerning

Insurance - Maryland Insurance Acquisitions Disclosure

and Control Act

FOR the purpose of further regulating certain transactions among
subsidiaries of an insurance holding company; providing that
domestic insurers may invest in certain stocks, obligations
and securities of subsidiaries subject to certain standards;
providing that persons seeking to acquire a domestic insurer
or persons controlling any domestic insurer shall disclose
certain information with respect to such acquisition to the
Insurance Commissioner; providing that certain acquisitions
in which there is a change in control of an insurer licensed
in Maryland be subject to the Commissioner's review;
providing that the Commissioner shall disapprove certain
acquisitions if the effect of any acquisition may
substantially lessen competition in insurance in Maryland;
providing standards of measuring competition; providing
certain standards for exempting certain transactions from
the Commissioner's review provided that certain information
is filed with the Commissioner; providing that the
Commissioner may retain at the acquiring person's expense
certain experts to assist the Commissioner; providing that
certain registration statements and summaries by certain
insurers be filed annually to contain certain information;
providing certain hearing procedures; providing the courts
of the State with certain jurisdictions; providing certain
penalties for failure to comply with the subtitle; providing
certain standards for transactions by insurers with
affiliates; providing that the Commissioner under certain
circumstances may proceed to take possession of an insurer
and conduct its business; providing that a receiver of a
controlled insurer may recover certain unlawful or
unreasonable distributions; defining certain terms; and
generally relating to insurers and their relationship with
affiliates, subsidiaries, and controlling persons.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 493(b), 494, 495, 496, 497(b), and 499

Annotated Code of Maryland

(1979 Replacement Volume and 1985 Supplement)

BY adding to

Article 48A - Insurance Code

Section 494A, 497(b-1), 500A, and 500B

Annotated Code of Maryland

(1979 Replacement Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows: