PARRIS N. GLENDENING, Governor

Ch. 36

"Life insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Reinsurance" § 1-101
"Surplus lines insurance" § 1-101

4-202. LEGISLATIVE POLICY.

(A)     LEGISLATIVE FINDINGS.

THE GENERAL ASSEMBLY FINDS THAT:

(1)      MANY RESIDENTS OF THE STATE HOLD POLICIES ISSUED BY
INSURERS AND OTHER PERSONS NOT AUTHORIZED TO DO INSURANCE BUSINESS IN
THE STATE;

(2)      THESE RESIDENTS FACE THE OFTEN INSURMOUNTABLE OBSTACLE
OF ASSERTING THEIR LEGAL RIGHTS UNDER THOSE POLICIES IN FORUMS THAT ARE
FOREIGN TO THEM AND UNDER LAWS AND RULES OF PRACTICE THAT ARE
UNFAMILIAR TO THEM; AND

(3)      PROTECTION FROM THE ACTS OF INSURERS AND OTHER PERSONS
NOT AUTHORIZED TO DO INSURANCE BUSINESS IN THE STATE CAN BE ACHIEVED
BY:

(I)       MAINTAINING FAIR AND HONEST INSURANCE MARKETS;

(II)     PROTECTING THE PREMIUM TAX REVENUES OF THE STATE;

(III)    PROTECTING AUTHORIZED INSURERS, WHICH ARE SUBJECT
TO STRICT REGULATION, FROM UNFAIR COMPETITION BY UNAUTHORIZED
PERSONS AND UNAUTHORIZED INSURERS; AND

(IV)    PROTECTING AGAINST EVASION OF THE INSURANCE
REGULATORY LAWS OF THE STATE.

(B)     LEGISLATIVE INTENT AND GOALS.

(1)      THE GENERAL ASSEMBLY INTENDS TO SUBJECT CERTAIN INSURERS
AND OTHER PERSONS TO THE JURISDICTION OF THE COMMISSIONER, IN
PROCEEDINGS BEFORE THE COMMISSIONER, AND TO THE COURTS OF THE STATE IN
SUITS BY OR FOR THE STATE AND INSUREDS OR BENEFICIARIES UNDER INSURANCE
CONTRACTS.

(2)      TO CARRY OUT THIS INTENT, THE GENERAL ASSEMBLY PROVIDES
FOR SUBSTITUTED SERVICE OF PROCESS ON CERTAIN INSURERS AND OTHER
PERSONS IN ANY PROCEEDING IN A COURT AND SUBSTITUTED SERVICE OF ANY
NOTICE, ORDER, PLEADING, OR PROCESS ON CERTAIN INSURERS AND OTHER
PERSONS IN ANY PROCEEDING BEFORE THE COMMISSIONER TO ENFORCE OR
EFFECT FULL COMPLIANCE WITH THE INSURANCE AND TAX LAWS OF THE STATE.

(C)     POWERS EXERCISED BY GENERAL ASSEMBLY.

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