Ch. 36

1995 LAWS OF MARYLAND

(2)     TRANSACTIONS THAT OCCUR AFTER ISSUANCE OF A. POLICY THAT
COVERS ONLY SUBJECTS OF INSURANCE NOT RESIDENT, LOCATED, OR EXPRESSLY
TO BE PERFORMED IN THE STATE AT THE TIME OF ISSUANCE, OR THAT COVERS
PROPERTY IN THE COURSE OF TRANSPORTATION BY LAND, AIR, OR WATER TO,
FROM, OR THROUGH THE STATE, INCLUDING ANY INCIDENTAL PREPARATION AND
STORAGE, AND THE COVERAGE WAS LAWFULLY SOLICITED, WRITTEN, AND
DELIVERED OUTSIDE THE STATE;

(3)     TRANSACTIONS THAT RELATE TO. SURPLUS LINES COVERAGES
LAWFULLY WRITTEN UNDER TITLE 3, SUBTITLE 3 OF THIS ARTICLE; OR

(4)      REINSURANCE TRANSACTIONS, EXCEPT AS TO DOMESTIC
REINSURERS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 42 and 43.

In subsection (a)(1) of this section, the word "subsisting", which formerly
modified "certificate of authority", is deleted as surplusage.

As to subsection (b)(1) of this section, the Insurance Article Review
Committee notes, for the consideration of the General Assembly, that the
reference to the "collection of premiums on existing policies" is substituted for
the former exception for the "collection of new premiums". This substitution
clarifies that an insurer formerly authorized to engage in insurance business in
the State may collect, e.g., renewal premiums without obtaining a certificate of
authority.

Defined terms: "Certificate of authority" § 1-101
"Commissioner" § 1-101
"Insurance" § 1-101

"Insurance business" § 1-101                                           

"Insurer" § 1-101
"Person" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Reinsurance" § 1-101
"State" § 1-101
"Surplus lines insurance" § 1-101

4-102. QUALIFICATIONS OF INSURERS.

(A) IN GENERAL.

TO ENGAGE IN THE INSURANCE BUSINESS IN THE STATE, AN INSURER MUST:

(1)      BE IN COMPLIANCE WITH ITS CHARTER POWERS AND WITH THIS
ARTICLE; AND                                                       

(2)      BE AN INCORPORATED STOCK INSURER, INCORPORATED MUTUAL
INSURER, OR RECIPROCAL INSURER.

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