WILLIAM DONALD SCHAEFER, Governor

H.B. 422

Sincerely,

William Donald Schaefer

Governor

AN ACT concerning

House Bill No. 422

Insurance - Regulation

FOR the purpose of altering the requirement for authorizing the Insurance
Commissioner to retain certain persons for conducting certain examinations and
providing for the expense of the examinations; requiring approval of the Insurance
Commissioner before certain purchases, mergers, or other acquisitions of a
domestic insurer or certain other persons may be made; altering and expanding the
factors used in determining the reasonableness and adequacy of an insurer's assets and
surplus; altering the conditions for determining an extraordinary dividend or
distribution of certain insurers; altering provisions that relate to extraordinary
dividends or distributions; requiring notification of the Insurance Commissioner
before payment of certain dividends; conforming the standard for presumption of
control of an insurer by a broker to the standard for determining control of an
insurer by an insurance holding company or by certain other insurers or persons;
altering the time period in the definition of managing general agent for determining
whether the person is acting as a managing general agent; extending for a certain
period provisions relating to the Insurance Division and the regulation of insurance;
providing for the licensing and regulation of reinsurance intermediaries by the
Insurance Commissioner; requiring reinsurance intermediaries to meet certain
requirements to be licensed; providing for the term and renewal of a license;
authorizing the Insurance Commissioner to deny a license or suspend, revoke, or
refuse to renew a license under certain circumstances; providing for the duties of
reinsurance intermediaries, authorized insurers that use a reinsurance broker, and
reinsurers that use a reinsurance manager; establishing certain penalties; and
generally relating to the regulation of insurance and reinsurance intermediaries.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code

Section 15A, 32(3), 494(e), 496(b), 497, 661(c) and 665(2)(i)
Annotated Code of Maryland
(1991 Replacement Volume and 1992 Supplement)

BY repealing and reenacting, without amendments,
Article 48A - Insurance Code
Section 7(1) and 661(a)
Annotated Code of Maryland
(1991 Replacement Volume and 1992 Supplement)

BY adding to

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