PARRIS N. GLENDENING, Governor

Ch. 36

(I)       IN WHICH BOTH THE ACQUIRING AND ACQUIRED PERSONS
ARE NOT, EITHER DIRECTLY OR THROUGH AFFILIATES, PRIMARILY ENGAGED IN
THE INSURANCE BUSINESS; AND

(II)     FOR WHICH A PRE-ACQUISITION NOTIFICATION:

1.        IS FILED WITH THE COMMISSIONER UNDER § 7-403 OF
THIS SUBTITLE; OR

2.        IS NOT REQUIRED BECAUSE THE ACQUISITION
OTHERWISE IS EXCLUDED FROM THIS SUBTITLE BY ANOTHER PROVISION OF THIS
SUBSECTION;

(5)      AN ACQUISITION IN WHICH THE ACQUIRING AND ACQUIRED
PERSONS ALREADY ARE AFFILIATED;

(6)      CONSIDERING "MARKET" TO BE THE DIRECT WRITTEN INSURANCE
PREMIUM IN THE STATE FOR A LINE OF BUSINESS AS CONTAINED IN THE ANNUAL
STATEMENT REQUIRED TO BE FILED BY AUTHORIZED INSURERS, AN ACQUISITION
THAT WOULD NOT RESULT IMMEDIATELY IN:

(I)       AN INCREASE IN ANY MARKET SHARE;

(II)     A COMBINED MARKET SHARE OF THE ACQUIRING AND
ACQUIRED INSURERS, THEIR AFFILIATES, AND THE PERSON RESULTING FROM A
MERGER THAT EXCEEDS 5% OF ANY ONE MARKET; OR

(III)    IN ANY ONE MARKET:

1.        A MARKET SHARE INCREASE OF MORE THAN 2%; AND

2.        A COMBINED MARKET SHARE OF THE ACQUIRING AND
ACQUIRED INSURERS, THEIR AFFILIATES, AND THE PERSON RESULTING FROM A
MERGER THAT EXCEEDS 12%;

(7)      AN ACQUISITION FOR WHICH A PRE-ACQUISITION NOTIFICATION
WOULD BE REQUIRED UNDER THIS SUBTITLE ONLY BECAUSE OF THE RESULTING
EFFECT ON THE OCEAN MARINE INSURANCE LINE OF BUSINESS; OR

(8)      AN ACQUISITION AS TO WHICH THE COMMISSIONER OF THE STATE
OF DOMICILE OF THE ACQUIRED INSURER AFFIRMATIVELY FINDS AND INFORMS
THE COMMISSIONER THAT:

(I)      THE ACQUIRED INSURER IS IN FAILING CONDITION;

(II)     THERE IS A LACK OF FEASIBLE ALTERNATIVES TO IMPROVING
THE FAILING CONDITION OF THE ACQUIRED INSURER; AND

(III)    THE PUBLIC BENEFITS FROM IMPROVING THE ACQUIRED
INSURER'S CONDITION THROUGH THE ACQUISITION OUTWEIGH THE PUBLIC
BENEFITS FROM NOT LESSENING COMPETITION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 494A(a)(3) and (b)(2) and (3).

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