PARRIS N. GLENDENING, Governor

Ch. 36

In subsection (h)(2) of this section, the phrase "in violation of paragraph (1)
of this subsection" is substituted for the former phrase "for such purpose" for
clarity.

Defined terms: "Affiliate" § 7-101
"Commissioner" § 1-101
"Domestic insurer" § 1-101
"Insurance holding company system" § 7-101
"Insurer" § 1-101
"Life insurer" § 1-101
"Person" § 1-101
"Premium" § 1-101
"Reinsurance" § 1-101

7-704. NOTICE TO COMMISSIONER OF INVESTMENT IN ONE CORPORATION.

A DOMESTIC INSURER SHALL NOTIFY THE COMMISSIONER WITHIN 30 DAYS
AFTER MAKING ANY INVESTMENT IN ONE CORPORATION IF THE TOTAL
INVESTMENT IN THE CORPORATION BY THE DOMESTIC INSURER'S INSURANCE
HOLDING COMPANY SYSTEM EXCEEDS 10% OF THE CORPORATION'S VOTING
SECURITIES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 496(f).

This section is revised in the active voice to clarify that a domestic insurer has
the duty to notify the Commissioner.

Defined terms: "Commissioner" § 1-101
"Domestic insurer" § 1-101
"Insurance holding company system" § 7-101

7-705. REGULATION OF DIVIDENDS AND DISTRIBUTIONS - IN GENERAL.

(A)     NOTICE REQUIRED.

EXCEPT AS PROVIDED IN § 7-706 OF THIS SUBTITLE, BEFORE AN INSURER
SUBJECT TO REGISTRATION UNDER SUBTITLE 6 OF THIS TITLE PAYS A DIVIDEND OR
MAKES A DISTRIBUTION TO ITS SHAREHOLDERS, THE INSURER SHALL NOTIFY THE
COMMISSIONER OF ITS INTENTION TO PAY THE DIVIDEND OR MAKE THE
DISTRIBUTION.

(B)     TIME OF NOTICE.

THE INSURER SHALL NOTIFY THE COMMISSIONER UNDER SUBSECTION (A) OF
THIS SECTION:

(1)     WITHIN 5 BUSINESS DAYS AFTER THE DECLARATION; AND

(2)     AT LEAST 10 DAYS BEFORE THE PAYMENT OR DISTRIBUTION DATE.

(C)     CONFIDENTIALITY OF NOTICE.

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