HARRY HUGHES, Governor                                         875

CHAPTER 199

(House Bill 322)

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