PARRIS N. GLENDENING, Governor

Ch. 36

(II) TRANSACTIONS MADE IN THE ORDINARY COURSE OF
BUSINESS AND INCIDENT TO THE ESTABLISHMENT OR MAINTENANCE OF A
PRIMARY OR SECONDARY MARKET.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 250A.

Throughout this section, references to a "domestic stock insurer" are
substituted for former references to "such insurer" and "the insurer" to
clarify that this section applies to domestic stock insurers.

As to the substitution in subsections (a)(5) and (c)(1)(i) of this section of the
reference "regulations" for the former reference to "rules and regulations",
see the General Revisor's Note to this article.

As to subsection (b)(2)(ii) of this section, the former convoluted language of
Art. 48A, § 250A(7) allowed an exception if the domestic insurer "would be
subject to ... this section" but had fewer than 100 holders of record in the
previous year. The former provision has been rephrased for clarity in
subsection (b)(2)(ii) of this section.

In subsection (d)(1) and (2) of this section, the former references to filing in
"the office of the Commissioner are deleted as surplusage.

In subsection (d)(1) of this section, the former reference to initial filings of
information with the Commissioner "on or before the first day of July,
nineteen hundred sixty-five" is deleted as obsolete.

In subsection (e)(3)(i) of this section, the former phrase "at law or in equity"
is deleted as surplusage.

Defined terms: "Commissioner" § 1-101
"Domestic insurer" § 1-101
"Insurer" § 1-101
"Person" § 1-101
"Stock insurer" § 1-101

3-120. CONVERSION OF STOCK INSURER TO MUTUAL INSURER.

(A)     SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO MUTUALIZATION UNDER A COURT ORDER
IN CONNECTION WITH THE REHABILITATION OR REORGANIZATION OF AN INSURER
UNDER TITLE 9, SUBTITLE 2 OF THIS ARTICLE.

(B)     AUTHORIZED.

A DOMESTIC STOCK INSURER, OTHER THAN A TITLE INSURER, MAY BECOME A
MUTUAL INSURER UNDER A PLAN AND PROCEDURE THAT IS APPROVED BY THE
COMMISSIONER AFTER A HEARING.

(C)     STANDARDS FOR APPROVAL.

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