PARRIS N. GLENDENING, Governor

Ch. 36

Defined terms: "Affiliate" § 7-101
"Control" § 1-101
"Insurance business" § 1-101
"Insurance holding company system" § 7-101
"Insurer" § 1-101
"Person" § 1-101

7-103. SCOPE OF TITLE.

(A)     IN GENERAL.

EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED, THE PROVISIONS OF THIS
TITLE ARE INTENDED TO APPLY TO AUTHORIZED INSURERS.

(B)     NONPROFIT HEALTH SERVICE PLANS.

THE PROVISIONS OF THIS TITLE THAT APPLY TO AUTHORIZED INSURERS AND
DOMESTIC INSURERS ALSO APPLY TO NONPROFIT HEALTH SERVICE PLANS
LICENSED UNDER § 14-XXX OF THIS ARTICLE [SUBTITLE 20 OF ART. 48A].

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 492(e).

Former Art. 48A, § 492(e)(1) defined an "[i]nsurance company or insurer" as
a company "qualified and licensed ... to transact the business of insurance in
this State". Although former Art. 48A, § 492(e) was a definition of
"[i]nsurance company or insurer", it served only to delimit the scope of this
title. It is revised to clarify that function. The former term "insurer" was not
used as it was defined in the former law. Instead, the phrase "insurer
authorized to do business in this State" was used where appropriate in the
former law. Accordingly, the defined term "authorized insurer" is substituted
in the revision for the former phrase "insurer authorized to do business in this
State". The Insurance Article Review Committee notes these changes for the
consideration of the General Assembly. No substantive change is intended.

In subsection (a) of this section, the limitation "[e]xcept as otherwise
specifically provided" is added to indicate that exceptions exist.

Defined terms: "Authorized insurer" § 1-101
"Domestic insurer" § 1-101

7-104. PRESUMPTION OF CONTROL; LIMITATION.

(A) IN GENERAL.

(1)      CONTROL IS PRESUMED TO EXIST IF A PERSON DIRECTLY OR
INDIRECTLY OWNS, DIRECTS THE VOTING OF, HOLDS WITH THE POWER TO VOTE,
OR HOLDS PROXIES REPRESENTING 10% OR MORE OF THE VOTING SECURITIES OF
ANOTHER PERSON.

(2)      HOWEVER, CONTROL IS NOT PRESUMED TO EXIST IF PROXIES HAVE
BEEN OBTAINED BY AN OFFICIAL OF THE PERSON SOLELY IN CONNECTION WITH
VOTING AT A MEETING OF THE OWNERS OF THE PERSON.

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