PARRIS N. GLENDENING, Governor                                   Ch. 36

understands that a mortgage loan may only be made on the principal
residence of a director or officer, not on a vacation home or other home. The
Committee notes this substitution for consideration by the General Assembly.

Defined terms: "Authorized insurer" § 1-101
"Insurance contract" § 1-101
"Insurer" § 1-101
"Life insurer" § 1-101
"Policy" § 1-101

3-118. AGREEMENTS TO PAY EXPENSES OF MANAGEMENT.

A DOMESTIC STOCK INSURER OR DOMESTIC MUTUAL INSURER MAY NOT
ENTER INTO AN AGREEMENT IN WHICH A PERSON AGREES TO PAY ALL OR PART OF
THE EXPENSES OF MANAGEMENT OF THE DOMESTIC STOCK INSURER OR DOMESTIC
MUTUAL INSURER IN CONSIDERATION OF AN AGREEMENT TO PAY TO THE PERSON
COMMISSIONS ON PREMIUMS DUE THE DOMESTIC STOCK INSURER OR DOMESTIC
MUTUAL INSURER OR ANY OTHER COMPENSATION FOR THE PERSON'S SERVICES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 268A(a).

The former terms "partnership" and "corporation" are deleted as included in
the defined term "person". As to the definition of "person", see § 1-101 of this
article.

The references to a "domestic stock insurer" and a "domestic mutual insurer"
are substituted for the former references to "this insurer" and "the insurer"
for consistency.

Former Art. 48A, § 268A(b), which allowed agreements in effect on June 1,
1965 to be extended to June 1, 1970, is deleted as obsolete.

Defined terms: "Domestic insurer" § 1-101
"Mutual insurer" § 1-101
"Person" § 1-101
"Premium" § 1-101
"Stock insurer" § 1-101

3-119. RESTRICTIONS ON PURCHASE AND SALE OF EQUITY SECURITIES OF
DOMESTIC STOCK INSURERS.

(A) "EQUITY SECURITY" DEFINED.

IN THIS SECTION, "EQUITY SECURITY" MEANS:

(1)      STOCK OR A SIMILAR SECURITY;

(2)      A SECURITY CONVERTIBLE, WITH OR WITHOUT CONSIDERATION,
INTO STOCK OR A SIMILAR SECURITY;

(3)      A SECURITY CARRYING A WARRANT OR RIGHT TO SUBSCRIBE TO
OR PURCHASE STOCK OR A SIMILAR SECURITY;

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