Ch. 36

1995 LAWS OF MARYLAND

.(E) TIME OF NOTICE.

THE INSURER SHALL NOTIFY THE COMMISSIONER UNDER SUBSECTION (D) OF
THIS SECTION AT LEAST 30 DAYS BEFORE THE EXTRAORDINARY DIVIDEND IS TO BE
PAID OR THE EXTRAORDINARY DISTRIBUTION IS TO BE MADE.

(F)      PAYMENT AUTHORIZED.

THE INSURER MAY PAY AN EXTRAORDINARY DIVIDEND OR MAKE AN
EXTRAORDINARY DISTRIBUTION TO ITS SHAREHOLDERS ONLY IF, WITHIN 30 DAYS
AFTER THE COMMISSIONER RECEIVES THE NOTICE, THE COMMISSIONER EITHER
APPROVES THE PAYMENT OR DISTRIBUTION, OR DOES NOT DISAPPROVE THE
PAYMENT OR DISTRIBUTION.

(G)     CONDITIONAL DECLARATIONS.

(1)      NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN INSURER
SUBJECT TO REGISTRATION UNDER SUBTITLE 6 OF THIS TITLE MAY DECLARE AN
EXTRAORDINARY DIVIDEND OR. EXTRAORDINARY DISTRIBUTION CONDITIONED
ON THE COMMISSIONER'S APPROVAL.

(2)      A CONDITIONAL DECLARATION' CONFERS NO RIGHTS ON
SHAREHOLDERS UNLESS, WITHIN 30 DAYS AFTER THE COMMISSIONER RECEIVES
THE NOTICE UNDER SUBSECTION (D) OF THIS SECTION, THE COMMISSIONER EITHER
APPROVES THE PAYMENT OR DISTRIBUTION, OR DOES NOT DISAPPROVE THE
PAYMENT OR DISTRIBUTION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 497(a) through (c).

In the introductory language of subsection (b) and subsection (c)(2) of this
section, the references to "determining whether an extraordinary dividend or
extraordinary distribution exists" are added to clarify the purpose of the
calculations under those subsections.

In subsection (b)(2)(ii) of this section, the former parenthetical "(Article 48A,
Subtitle 36 of the Code)" is deleted as surplusage.

In subsection (c)(2) of this section, the reference to "an insurer described in
paragraph (1) of this subsection" is added for clarity.

In subsection (c)(2)(ii)2 of this section, the reference to an insurer "other than
a life insurer" is substituted for the former reference to an insurer that is "not
a life insurer" for consistency.

Subsections (d) and (e) of this section are rephrased to state expressly that
which only was implied in the former law, i.e., that an insurer must notify the
Commissioner 30 days before paying an extraordinary dividend or making an
extraordinary distribution to its shareholders.

In subsections (d), (e), and (f) of this section, references to "extraordinary
distributions" are added for consistency.

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