PARRIS N. GLENDENING, Governor                                   Ch. 36

(I)       ON AN EFFECTIVE DATE, IF ANY, STATED IN THE AGREEMENT,
IF THE EFFECTIVE DATE IS AFTER THE DATE OF APPROVAL BY THE COMMISSIONER;
OR

(II)     ON THE DATE ON WHICH THE LAST CERTIFICATE OF
APPROVAL IS EXECUTED BY THE INSURANCE SUPERVISORY OFFICIAL OF THE
STATE OF DOMICILE OF ANY OF THE PARTIES TO THE AGREEMENT.

(2) WITHIN 15 DAYS AFTER A CONSOLIDATION OR MERGER
AGREEMENT BECOMES EFFECTIVE, A COPY OF THE AGREEMENT SHALL BE FILED
OF RECORD IN A PUBLIC OFFICE WHERE ARTICLES OF INCORPORATION ARE
REQUIRED TO BE FILED BY THE LAWS OF THE STATE OF DOMICILE OF ANY PARTY
TO THE AGREEMENT.

(F) EFFECT OF CONSOLIDATION OR MERGER.

AFTER A CONSOLIDATION OR MERGER, THE FOLLOWING CONDITIONS APPLY:

(1)      THE SUCCESSOR MUTUAL INSURER MAY REQUIRE THE RETURN OF
THE ORIGINAL POLICIES HELD BY EACH POLICYHOLDER IN EACH OF THE MUTUAL
INSURERS CONSOLIDATED OR MERGED AND MAY ISSUE REPLACEMENT POLICIES AS
THE POLICYHOLDERS MAY BE ENTITLED TO RECEIVE;

(2)      ALL RIGHTS AND PROPERTIES OF THE PARTIES TO THE AGREEMENT
SHALL ACCRUE TO AND BECOME THE RIGHTS AND PROPERTIES OF THE SUCCESSOR
MUTUAL INSURER, AND THE SUCCESSOR MUTUAL INSURER SHALL SUCCEED TO
AND ASSUME ALL THE OBLIGATIONS AND LIABILITIES OF THE CONSOLIDATED OR
MERGED MUTUAL INSURERS IN THE SAME MANNER AS IF INCURRED OR
CONTRACTED BY THE SUCCESSOR MUTUAL INSURER;

(3)      THE POLICYHOLDERS OF THE CONSOLIDATED OR MERGED
MUTUAL INSURERS SHALL CONTINUE TO BE SUBJECT TO ALL THE LIABILITIES,
CLAIMS, AND DEMANDS EXISTING AGAINST THEM AT OR BEFORE THE
CONSOLIDATION OR MERGER;

(4)      AN ACTION OR PROCEEDING THAT IS PENDING WHEN THE
CONSOLIDATION OR MERGER OCCURS AND TO WHICH ANY OF THE CONSOLIDATED
OR MERGED MUTUAL INSURERS IS A PARTY IS NOT ABATED OR DISCONTINUED
BECAUSE OF THE CONSOLIDATION OR MERGER, BUT THE ACTION OR PROCEEDING
MAY BE PROSECUTED TO FINAL JUDGMENT AS IF THE SUCCESSOR MUTUAL
INSURER WERE SUBSTITUTED FOR ANY INSURER CONSOLIDATED OR MERGED BY
ORDER OF THE COURT IN WHICH THE ACTION OR PROCEEDING IS PENDING;

(5)      IF THE SUCCESSOR MUTUAL INSURER IS A FOREIGN INSURER THAT
MUST COMPLY WITH THE LAWS OF THIS STATE ON DEPOSITS THAT ARE REQUIRED
OF A FOREIGN INSURER, ALL DEPOSITS THAT WERE MADE IN THIS STATE BY ANY
MUTUAL INSURER THAT IS A PARTY TO THE CONSOLIDATION OR MERGER
AGREEMENT SHALL BE DELIVERED TO THE SUCCESSOR MUTUAL INSURER; AND

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