Ch. 36

1995 LAWS OF MARYLAND

(II) THE DAY ON WHICH THE COMMISSIONER ENDS THE WAITING
PERIOD.

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

In subsection (b)(2) of this section, the reference to the period under
subsection (a) being "extended" is substituted for the former reference to the
period "end[ing]" on a certain date for clarity.

Defined term: "Commissioner" § 1-101

7-405. ORDERS BY COMMISSIONER.

(A)     IN GENERAL.

(1)      EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, THE
COMMISSIONER MAY ENTER AN ORDER UNDER THIS SECTION WITH RESPECT TO AN
ACQUISITION SUBJECT TO THIS SUBTITLE IF:

(I)       THERE IS SUBSTANTIAL EVIDENCE THAT THE EFFECT OF THE
ACQUISITION MAY BE SUBSTANTIALLY TO LESSEN COMPETITION IN ANY LINE OF
INSURANCE IN THE STATE OR TEND TO CREATE A MONOPOLY; OR

(II)     THE INSURER FAILS TO FILE ADEQUATE INFORMATION IN
COMPLIANCE WITH § 7-403 OF THIS SUBTITLE.

(2)      THE ORDER MAY:

(I)       REQUIRE AN ACQUIRING OR ACQUIRED INSURER, ITS
AFFILIATES, OR THE PERSON RESULTING FROM A MERGER TO CEASE AND DESIST
FROM DOING BUSINESS IN THE STATE WITH RESPECT TO THE LINE OF INSURANCE
INVOLVED IN THE VIOLATION; OR

(II)     DENY THE APPLICATION OF AN ACQUIRING OR ACQUIRED
INSURER FOR A CERTIFICATE OF AUTHORITY.

(B)     LIMITATIONS.

THE COMMISSIONER MAY NOT ENTER AN ORDER UNDER THIS SECTION WITH
RESPECT TO AN ACQUISITION SUBJECT TO THIS SUBTITLE IF:

(1)      THE ACQUISITION WILL YIELD SUBSTANTIAL ECONOMIES OF SCALE
OR ECONOMIES IN RESOURCE UTILIZATION THAT CANNOT BE ACHIEVED FEASIBLY
IN ANY OTHER WAY, AND PUBLIC BENEFITS FROM THOSE ECONOMIES OUTWEIGH
THE PUBLIC BENEFITS FROM NOT LESSENING COMPETITION; OR

(2)      THE ACQUISITION WILL INCREASE SUBSTANTIALLY THE
AVAILABILITY OF INSURANCE, AND PUBLIC BENEFITS FROM THAT INCREASE
OUTWEIGH THE PUBLIC BENEFITS FROM NOT LESSENING COMPETITION.

(C)     DETERMINING VIOLATIONS.

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