Ch. 36

1995 LAWS OF MARYLAND

7-109. CONFLICT WITH OTHER LAWS.

ALL LAWS AND PARTS OF LAWS OF THE STATE THAT ARE INCONSISTENT WITH
THIS TITLE ARE SUPERSEDED TO THE EXTENT OF THE INCONSISTENCY.

REVISOR'S NOTE: This section formerly was Art. 48A, § 503.

The only changes are in style.

SUBTITLE 2. ACQUISITIONS AND INVESTMENTS — IN GENERAL.

7-201. AUTHORITY TO ACQUIRE SUBSIDIARY.

IN ADDITION TO ANY OTHER INVESTMENT ALLOWED ELSEWHERE IN THIS
ARTICLE, A DOMESTIC INSURER, EITHER ALONE OR WITH ANOTHER PERSON, MAY
INVEST IN OR OTHERWISE ACQUIRE A SUBSIDIARY THAT ENGAGES IN OR IS
REGISTERED TO ENGAGE IN ONE OR MORE OF THE FOLLOWING INSURANCE
BUSINESSES OR BUSINESS ACTIVITIES THAT ARE ANCILLARY TO AN INSURANCE
BUSINESS:.

(1)      CONDUCTING AN INSURANCE BUSINESS THAT IS AUTHORIZED BY
THE JURISDICTION WHERE THE SUBSIDIARY IS INCORPORATED;

(2)      ACTING AS AN INSURANCE AGENCY FOR ITS PARENT, ITS PARENT'S
INSURER SUBSIDIARIES, OR ITS PARENT'S INTERMEDIATE INSURER SUBSIDIARIES;

(3)      INVESTING, REINVESTING, OR TRADING IN SECURITIES FOR ITSELF,
ITS AFFILIATE, ITS PARENT, OR ANOTHER SUBSIDIARY OF ITS PARENT;

(4)      MANAGING AN INVESTMENT COMPANY THAT IS SUBJECT TO THE
INVESTMENT COMPANY ACT OF 1940, INCLUDING MANAGING RELATED SALES AND
SERVICES OF THE INVESTMENT COMPANY;

(5)      ACTING AS A BROKER-DEALER THAT IS SUBJECT TO THE
SECURITIES EXCHANGE ACT OF 1934;

(6)      PROVIDING INVESTMENT ADVICE TO GOVERNMENTS,
GOVERNMENTAL UNITS, CORPORATIONS, OR OTHER ORGANIZATIONS OR GROUPS;

(7)      PERFORMING OTHER SERVICES RELATED TO THE OPERATIONS OF
AN INSURANCE BUSINESS, INCLUDING ACTUARIAL, LOSS PREVENTION, SAFETY
ENGINEERING, DATA PROCESSING, ACCOUNTING, CLAIMS, APPRAISAL, AND

, COLLECTION SERVICES;

(8)      OWNING AND MANAGING ASSETS THAT ITS PARENT MAY OWN AND
MANAGE;

(9)      ACTING AS ADMINISTRATIVE AGENT FOR A GOVERNMENTAL UNIT
THAT PERFORMS AN INSURANCE FUNCTION;

(10)    FINANCING INSURANCE PREMIUMS;

- 1020 -