Ch. 36                                          1995 LAWS OF MARYLAND

(I)       AN ACTION TO ENJOIN THE SOCIETY FROM CONDUCTING
INSURANCE BUSINESS; OR

(II)     AN ACTION SEEKING A MANDATORY INJUNCTION.

(3)      THE COURT SHALL SCHEDULE A HEARING AND NOTIFY THE
OFFICERS OF THE SOCIETY OF THE HEARING.

(4)      IF, AFTER A FULL HEARING, THE COURT FINDS THAT A VIOLATION
HAS OCCURRED UNDER SUBSECTION (A) OF THIS SECTION, THE COURT SHALL PASS
AN ORDER:

(I)       ENJOINING THE SOCIETY FROM CONDUCTING INSURANCE
BUSINESS;

(II)     LIQUIDATING THE SOCIETY; OR

(III)    APPOINTING THE COMMISSIONER AS RECEIVER OF THE
SOCIETY.

(D)     DISSOLUTION OF INJUNCTION.

A SOCIETY ENJOINED FROM CONDUCTING INSURANCE BUSINESS UNDER THIS
SECTION MAY NOT CONDUCT INSURANCE BUSINESS UNTIL:

(1)      THE COMMISSIONER FINDS THAT THE VIOLATION HAS BEEN
CORRECTED;

(2)      THE COSTS OF THE ACTION HAVE BEEN PAID BY THE SOCIETY, IF
THE COURT FINDS THAT THE SOCIETY WAS IN DEFAULT;

(3)      THE COURT HAS DISSOLVED THE INJUNCTION; AND

(4)      THE COMMISSIONER HAS REINSTATED THE SOCIETY'S CERTIFICATE
OF AUTHORITY.

(E)     LIQUIDATION OF SOCIETY.

IF A COURT ORDERS A SOCIETY TO BE LIQUIDATED:

(1)      THE SOCIETY MAY NOT CONDUCT ANY FURTHER INSURANCE
BUSINESS; AND                 

(2)      THE RECEIVER OF THE SOCIETY IMMEDIATELY SHALL:

(I)       TAKE POSSESSION OF THE BOOKS, PAPERS, MONEY, AND
OTHER ASSETS OF THE SOCIETY; AND

(II)     CLOSE THE AFFAIRS OF THE SOCIETY AND DISTRIBUTE ITS
FUNDS TO THOSE ENTITLED TO THE FUNDS UNDER THE DIRECTION OF THE COURT.

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