PARRIS N. GLENDENING, Governor

Ch. 36

Also in subsection (a) of this section, the reference to "duties" of a
corporation is substituted for the former reference to "obligations imposed
on" a corporation to conform to the terminology used in other revised articles
to refer to statutorily imposed requirements. See, e.g., BR §§ 8-214 and
11-214.

Also in subsection (b) of this section, the date "December 31, 1963", which is
the effective date of Chapter 553 of the Laws of 1963, is substituted for the
former erroneous reference to "June 1, 1963".

Defined term: "Domestic insurer" § 1-101

3-103. FORMATION OF DOMESTIC INSURERS.

(A)     IN GENERAL.

A DOMESTIC INSURER MAY BE FORMED FOR INSURANCE PURPOSES UNDER
TITLE 2 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE.

(B)     MUTUAL INSURERS AND STOCK INSURERS.

A DOMESTIC INSURER MAY BE FORMED EITHER AS A MUTUAL INSURER OR
STOCK INSURER, AS STATED IN ITS ARTICLES OF INCORPORATION.

(C)     MEMBERS OF MUTUAL INSURER.

(1)      EACH POLICYHOLDER OF A DOMESTIC MUTUAL INSURER, OTHER
THAN A HOLDER OF A REINSURANCE CONTRACT, IS A MEMBER OF THE MUTUAL
INSURER, WITH EACH RIGHT AND OBLIGATION OF MEMBERSHIP.

(2)      EACH POLICY SHALL STATE THE PROVISIONS OF PARAGRAPH (1) OF
THIS SUBSECTION.

(3)      ANY PERSON, GOVERNMENT, GOVERNMENTAL UNIT, STATE, OR
POLITICAL SUBDIVISION MAY BE A MEMBER OF A DOMESTIC, FOREIGN, OR ALIEN
MUTUAL INSURER.

(4)      AN OFFICER, STOCKHOLDER, TRUSTEE, OR LEGAL
REPRESENTATIVE OF A MEMBER:

(I)       MAY BE RECOGNIZED AS ACTING IN A REPRESENTATIVE
CAPACITY FOR OR ON BEHALF OF THE MEMBER FOR THE PURPOSE OF THE
MEMBERSHIP; AND

(II)     IS NOT PERSONALLY LIABLE ON THE INSURANCE CONTRACT
FOR ACTING IN THAT REPRESENTATIVE CAPACITY.

(5)      A MARYLAND CORPORATION MAY PARTICIPATE AS A MEMBER OF A
MUTUAL INSURER INCIDENTALLY TO THE PURPOSE FOR WHICH THE CORPORATION
IS ORGANIZED.

(D)     VOTING BY MEMBERS OF MUTUAL INSURER.

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