Ch. 36

1995 LAWS OF MARYLAND

In subsection (e)(2)(i) of this section, the requirement that the Commissioner
hold a hearing within 30 days is added to state explicitly the requirement that
only was implied in the former law.

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

3-128. SOLICITATIONS IN OTHER STATES.

(A)     "RECIPROCATING STATE" DEFINED.

IN THIS SECTION, "RECIPROCATING STATE" MEANS A STATE UNDER THE LAWS
OF WHICH A PROHIBITION ON SOLICITATION SIMILAR TO THAT IMPOSED AGAINST
DOMESTIC INSURERS UNDER THIS SECTION IS IMPOSED ON AND ENFORCED
AGAINST INSURERS DOMICILED IN THAT STATE.

(B)      SOLICITATION IN RECIPROCATING STATE PROHIBITED.

A DOMESTIC INSURER MAY NOT KNOWINGLY SOLICIT INSURANCE BUSINESS IN
A RECIPROCATING STATE IN WHICH THE DOMESTIC INSURER IS NOT LICENSED AS
AN AUTHORIZED INSURER.

(C)     ADVERTISING AUTHORIZED.

THIS SECTION DOES NOT PROHIBIT ADVERTISING THROUGH PUBLICATION OR
BY RADIO, TELEVISION, OR OTHER BROADCASTS ORIGINATING OUTSIDE THE
RECIPROCATING STATE IF:                                                                                 

(1)      THE INSURER IS LICENSED TO ENGAGE IN THE^: INSURANCE
BUSINESS IN A MAJORITY OF THE STATES IN WHICH THE ADVERTISING IS
DISSEMINATED; AND

(2)      THE ADVERTISING IS NOT SPECIFICALLY DIRECTED TO RESIDENTS
OF THE RECIPROCATING STATE.

(D)     EFFECT OF SECTION.

THIS SECTION DOES NOT PROHIBIT:

(1)      INSURANCE COVERING PERSONS OR RISKS LOCATED IN A
RECIPROCATING STATE UNDER CONTRACTS SOLICITED AND ISSUED IN STATES IN
WHICH THE INSURER IS THEN LICENSED; OR

(2)      INSURANCE EFFECTUATED BY THE INSURER AS AN UNAUTHORIZED
INSURER UNDER THE LAWS OF THE RECIPROCATING STATE.

(E)     SUSPENSION OR REVOCATION OF CERTIFICATE OF AUTHORITY.

IF THE COMMISSIONER FINDS, AFTER A HEARING, THAT A DOMESTIC INSURER
HAS VIOLATED THIS SECTION, THE COMMISSIONER SHALL SUSPEND OR REVOKE
THE CERTIFICATE OF AUTHORITY OF THE DOMESTIC INSURER.

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