PARRIS N. GLENDENING, Governor                                  Ch. 36

7-203. DISPOSAL OF ASSETS WHEN CONTROL ENDS.

(A)     REQUIRED.

(1)      EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, WITHIN
3 YEARS AFTER A DOMESTIC INSURER ENDS ITS CONTROL OF A SUBSIDIARY, THE
DOMESTIC INSURER SHALL DISPOSE OF ALL INVESTMENTS IN THE SUBSIDIARY
THAT WERE MADE UNDER § 7-202 OF THIS SUBTITLE.

(2)      THE COMMISSIONER MAY EXTEND THE TIME FOR DISPOSAL OF THE
INVESTMENTS.

(B)     EXCEPTION.

A DOMESTIC INSURER IS NOT REQUIRED TO DISPOSE OF AN INVESTMENT
UNDER SUBSECTION (A) OF THIS SECTION IF, AFTER THE INVESTMENT IS MADE:

(1)      THE INVESTMENT MEETS THE REQUIREMENTS FOR INVESTMENT
UNDER ANOTHER PROVISION OF THIS ARTICLE; AND

(2)      THE DOMESTIC INSURER NOTIFIES THE COMMISSIONER THAT THE
INVESTMENT MEETS THE OTHER REQUIREMENTS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 493(c).

Subsection (a)(2) of this section is revised to state expressly the
Commissioner's authority to extend the time for disposing of investments.

Defined terms: "Commissioner" § 1-101
"Control" § 1-101
"Domestic insurer" § 1-101
"Subsidiary" § 7-101

SUBTITLE 3. ACQUISITION OF CONTROL OF DOMESTIC INSURER OR INSURANCE

HOLDING COMPANY.

7-301. SCOPE OF SUBTITLE.

(A)     IN GENERAL.

EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THIS SUBTITLE APPLIES
TO ANY PURCHASE, EXCHANGE, MERGER, OR OTHER TRANSACTION THAT WOULD
RESULT IN THE ACQUISITION OF DIRECT OR INDIRECT CONTROL OF A DOMESTIC
INSURER OR OF AN INSURANCE HOLDING COMPANY CONTROLLING A DOMESTIC
INSURER.

(B)     EXEMPTION BY COMMISSIONER.

THIS SUBTITLE DOES NOT APPLY TO AN OFFER FOR OR INVITATION FOR
TENDER OF VOTING SECURITIES, OR TO AN AGREEMENT TO EXCHANGE SECURITIES
FOR OR OTHERWISE TO ACQUIRE CONTROL OF A DOMESTIC INSURER OR OF AN
INSURANCE HOLDING COMPANY CONTROLLING A DOMESTIC INSURER, TO THE

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