Ch. 36                                      1995 LAWS OF MARYLAND

(B)     REBUTTAL OF PRESUMPTION.

THE PRESUMPTION OF CONTROL MAY BE REBUTTED BY SHOWING BY A
PREPONDERANCE OF THE EVIDENCE THAT CONTROL DOES NOT EXIST IN FACT.

(C)     FINDING BY COMMISSIONER.

(1)     NOTWITHSTANDING THE PRESUMPTION OF CONTROL, THE
COMMISSIONER, ON APPLICATION OF AN INSURER, MAY FIND THAT A PERSON
PRESUMED TO CONTROL AN INSURER OR PERSON DOES NOT HAVE CONTROL OF
THE INSURER OR PERSON.

(2)      IN ADDITION, THE COMMISSIONER, AFTER NOTICE AND AN
OPPORTUNITY TO BE HEARD, MAY FIND THAT A PERSON NOT PRESUMED TO HAVE
CONTROL OF AN INSURER OR PERSON DOES HAVE CONTROL OF THE INSURER OR
PERSON.

REVISOR'S NOTE: This section is new language derived without substantive
change from the second through sixth sentences of former Art. 48A, § 492(c).

In subsection (a)(1) of this section, the word "directs" is substituted for the
former word "controls" so as not to use the word "control" in stating the
presumption of control.

In subsection (c)(1) and (2) of this section, the defined term "insurer" is
substituted for the former term "insurance company" to use the defined term.

Also in subsection (c)(1) and (2) of this section, the defined term "person" is
substituted for the former word "company" in each instance to conform to the
references to control of "another person" or of a "person" in subsection (a)(1)
and (2) of this section, respectively.

Defined terms: "Commissioner" § 1-101
"Control" § 1-101
"Insurer" § 1-101
"Person" § 1-101

7-105. STANDARDS FOR REASONABLENESS OF ASSETS AND SURPLUS AS REGARDS
POLICYHOLDERS.

(A) IN GENERAL.

FOR PURPOSES OF THIS TITLE, IN DETERMINING WHETHER AN INSURER'S
ASSETS AND SURPLUS AS REGARDS POLICYHOLDERS ARE REASONABLE IN
RELATION TO THE INSURER'S OUTSTANDING LIABILITIES AND ADEQUATE TO ITS
FINANCIAL NEEDS, THE FOLLOWING FACTORS, AMONG OTHERS, SHALL BE
CONSIDERED:

(1) THE SIZE OF THE INSURER AS MEASURED BY ITS ASSETS, CAPITAL
AND SURPLUS, RESERVES, PREMIUM WRITINGS, INSURANCE IN FORCE, AND OTHER
APPROPRIATE CRITERIA;

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