3690                                                       VETOES

[(f)] (H) The Commissioner may allow or require any insurer
which is authorized to do business in this State and which is
part of an insurance holding company system to register on behalf
of any affiliated insurer which is required to register under
subsection (a) and to file all information and material required
to be filed under this subtitle.

[(g)] (I) The provisions of this section shall not apply to
any insurer or affiliate if and to the extent that the
Commissioner by rule or regulation or by order shall exempt the
same from the provisions of this section as not comprehended
within the purpose of this section.

[(h)] (J) Failure to file the registration statement or [to
keep the registration statement current] ANY SUMMARY OF THE
REGISTRATION STATEMENT REQUIRED BY THIS SECTION WITHIN THE TIME
SPECIFIED FOR SUCH FILING shall constitute a violation of this
subtitle.

[(i)] (K) Any person may file with the Commissioner a
disclaimer of affiliation with any authorized insurer or such a
disclaimer may be filed by such insurer or any member of an
insurance holding company system. The disclaimer shall fully
disclose all material relationships and bases for affiliation
between such person and such insurer as well as the basis for
disclaiming such affiliation. After a disclaimer has been filed,
the insurer shall be relieved of any duty to register or report
under this section which may arise out of the insurer's
relationship with such person unless and until the Commissioner
disallows such a disclaimer. The Commissioner shall disallow
such a disclaimer only after furnishing all parties in interest
with notice and opportunity to be heard, and after making
specific findings of fact to support such disallowance.

[(j)] (L) Any such material transaction which, after notice
and an opportunity to be heard, is found to be not in conformity
with this section shall constitute a violation of this subtitle,
and in addition to the penalties contained in § 500, may be set
aside and rescinded at the initiative of the Commissioner or
otherwise under applicable law; provided, however, that notice of
any proposed action by the Commissioner to set aside or rescind a
material transaction shall be given to the insurer within ninety
days of the date such material transaction is communicated to the
Commissioner.

496.

(a) Transactions [by insurers with their affiliates] WITHIN
A HOLDING COMPANY SYSTEM TO WHICH AN INSURER SUBJECT TO
REGISTRATION IS A PARTY are subject to the following standards:

(1)  The terms shall be fair and reasonable in
consideration of the purposes of this subtitle;

(2)  The books, accounts, and records of each party
shall be so maintained as to clearly and accurately disclose the