884

LAWS OF MARYLAND

Ch. 199

(2)  "ACQUISITION" MEANS ANY AGREEMENT, ARRANGEMENT OR
ACTIVITY THE CONSUMMATION OF WHICH RESULTS IN A PERSON ACQUIRING
DIRECTLY OR INDIRECTLY THE CONTROL OF ANOTHER PERSON, AND
INCLUDES BUT IS NOT LIMITED TO THE ACQUISITION OF VOTING
SECURITIES, THE ACQUISITION OF ASSETS, BULK REINSURANCE, AND
MERGERS.

(3)  "INVOLVED INSURER" INCLUDES AN INSURER WHICH
EITHER ACQUIRES OR IS ACQUIRED, IS AFFILIATED WITH AN ACQUIRER OR
ACQUIRED, OR IS THE RESULT OF A MERGER.

(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, THIS SECTION APPLIES TO ANY ACQUISITION IN WHICH
THERE IS A CHANGE IN CONTROL OF AN INSURER AUTHORIZED TO DO
BUSINESS IN THIS STATE.

(2) THIS SECTION DOES NOT APPLY TO THE FOLLOWING:

(I)  AN ACQUISITION SUBJECT TO APPROVAL OR
DISAPPROVAL BY THE COMMISSIONER PURSUANT TO § 494 OF THIS
ARTICLE;

(II)  A PURCHASE OF SECURITIES SOLELY FOR
INVESTMENT PURPOSES SO LONG AS SUCH SECURITIES ARE NOT USED FOR
VOTING OR OTHERWISE TO CAUSE OR ATTEMPT TO CAUSE THE SUBSTANTIAL
LESSENING OF COMPETITION IN ANY INSURANCE MARKET IN THIS STATE.
IF A PURCHASE OF SECURITIES RESULTS IN A PRESUMPTION OF CONTROL
UNDER § 492(C) OF THIS ARTICLE, IT IS NOT SOLELY FOR INVESTMENT
PURPOSES UNLESS THE INSURANCE COMMISSIONER OF THE INSURER'S STATE
OF DOMICILE ACCEPTS A DISCLAIMER OF CONTROL OR AFFIRMATIVELY
FINDS THAT CONTROL DOES NOT EXIST AND SUCH DISCLAIMER ACTION OR
AFFIRMATIVE FINDING IS COMMUNICATED BY THE DOMICILIARY
COMMISSIONER TO THE MARYLAND INSURANCE COMMISSIONER;

(III)  THE ACQUISITION OF A PERSON BY ANOTHER
PERSON WHEN BOTH PERSONS ARE NEITHER DIRECTLY NOR THROUGH
AFFILIATES PRIMARILY ENGAGED IN THE BUSINESS OF INSURANCE, IF
PRE-ACQUISITION NOTIFICATION IS FILED WITH THE COMMISSIONER IN
ACCORDANCE WITH § 494A(C)(1) OF THIS ARTICLE THIRTY (30) DAYS
PRIOR TO THE PROPOSED EFFECTIVE DATE OF THE ACQUISITION.
HOWEVER, SUCH PRE-ACQUISITION NOTIFICATION IS NOT REQUIRED FOR
EXCLUSION FROM THIS SECTION IF THE ACQUISITION WOULD OTHERWISE BE
EXCLUDED FROM THIS SECTION BY ANY OTHER SUBPARAGRAPH OF §
494A(B)(2) OF THIS ARTICLE;

(IV)  THE ACQUISITION OF ALREADY AFFILIATED
PERSONS;

(V)  AN ACQUISITION IF, AS AN IMMEDIATE RESULT
OF THE ACQUISITION:

1. IN NO MARKET WOULD THE COMBINED MARKET
SHARE OF THE INVOLVED INSURERS EXCEED 5 PERCENT OF THE TOTAL
MARKET;