Ch. 36

1995 LAWS OF MARYLAND

(2)      REQUIRING DISCLOSURES OF MATERIAL TRANSACTIONS,
RELATIONSHIPS BETWEEN AN INSURER AND ITS AFFILIATES, AND DIVIDENDS TO
STOCKHOLDERS PAID BY INSURERS;

(3)      REQUIRING DISCLOSURES OF RELEVANT INFORMATION ABOUT
CHANGES IN CONTROL OF INSURERS; AND

(4)     ESTABLISHING PENALTIES FOR FAILURE TO DISCLOSE AND
PROVIDING FOR THE DISAPPROVAL OF CERTAIN TRANSACTIONS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 491(a) and (b).

In the introductory language of subsection (a) of this section, the former
reference to the General Assembly having "declared" its finding is deleted as
unnecessary in light of the word "finds".

Also in the introductory language of subsection (a) of this section, the former
reference to interests that "are" adversely affected is deleted as unnecessary
in light of the reference to those that "may be" adversely affected.

In subsection (a)(3) of this section, the word "enters" is substituted for the
former phrase "is caused to enter" to avoid a possible misinterpretation that
an adverse effect would not result if the insurer entered the transaction on its
own volition.

In the introductory language of subsection (b) of this section, the word
"include" is substituted for the former phrase "but not in' limitation" for
brevity. See Art. 1, § 30.

Also in the introductory language of subsection (b) of this section, the former
reference to the "policies" of this title is deleted as included in the reference
to its "purposes".

In subsection (b)(1) of this section, the reference to disclosures "in
acquisitions or mergers" is substituted for the former reference to disclosures
"by acquiring or merging companies" for clarity, reflecting that an acquired
person is also authorized to make certain disclosures.

In subsection (b)(2) of this section, the former reference to requiring
disclosures "by insurers" is deleted as surplusage.

In subsection (b)(4) of this section, the reference to providing for the
"disapproval" of transactions is substituted for the former reference to
providing for the "opportunity to disapprove" certain transactions to reflect
that the Commissioner is given explicit authority in this title to disapprove
certain transactions.

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