PARRIS N. GLENDENING, Governor

Ch. 11

(7)      AFTER REASONABLE NOTICE, HAS FAILED PROMPTLY AND
EFFECTIVELY TO TERMINATE THE EMPLOYMENT, STATUS, AND INFLUENCE OVER
THE MANAGEMENT OF THE INSURER OF A PERSON THAT HAS EXECUTIVE
AUTHORITY IN FACT OVER THE INSURER AND HAS REFUSED TO BE EXAMINED
UNDER OATH ABOUT THE AFFAIRS OF THE INSURER IN THE STATE OR ELSEWHERE;

(8)      HAS BEEN OR IS THE SUBJECT OF AN APPLICATION FOR
APPOINTMENT OF A RECEIVER, TRUSTEE, CUSTODIAN, SEQUESTRATOR, OR SIMILAR
FIDUCIARY OF THE INSURER OR ITS PROPERTY IN AN ACTION NOT FILED UNDER
THIS ARTICLE, REGARDLESS OF WHETHER THE APPOINTMENT:

(I)       HAS BEEN MADE;

(II)     MIGHT DENY THE COURTS OF THE STATE OF JURISDICTION;
OR

(III)    MIGHT PREJUDICE AN ORDERLY DELINQUENCY PROCEEDING
UNDER THIS SUBTITLE;

(9)      HAS CONSENTED TO THE ORDER FOR CONSERVATION OR
REHABILITATION THROUGH A MAJORITY OF ITS DIRECTORS, STOCKHOLDERS,.
MEMBERS, OR SUBSCRIBERS;

(10)    HAS FAILED TO PAY A FINAL JUDGMENT RENDERED AGAINST IT IN
THE STATE ON AN INSURANCE CONTRACT ISSUED OR ASSUMED BY THE INSURER,
WITHIN 60 DAYS AFTER THE LATEST OF:

(I)       THE DAY ON WHICH THE JUDGMENT BECAME FINAL;

(II)     THE DAY ON WHICH THE TIME FOR TAKING AN APPEAL
EXPIRED; AND

(III) THE DAY ON WHICH AN APPEAL WAS DISMISSED BEFORE
FINAL TERMINATION;

(11)    AFTER EXAMINATION BY THE COMMISSIONER, IS FOUND TO BE IN A
CONDITION IN WHICH FURTHER TRANSACTION OF ITS BUSINESS WILL BE
HAZARDOUS TO ITS POLICYHOLDERS, BONDHOLDERS, CREDITORS, OR THE PUBLIC;

(12)    HAS FAILED TO REMOVE A PERSON THAT HAS EXECUTIVE
AUTHORITY IN FACT OVER THE INSURER AFTER THE COMMISSIONER HAS FOUND
THAT PERSON TO BE DISHONEST OR UNTRUSTWORTHY IN A MANNER THAT MIGHT
AFFECT THE BUSINESS OF THE INSURER;

(13)    HAS REASONABLE CAUSE TO KNOW, OR SHOULD KNOW, THAT
THERE HAS BEEN:

(I)       EMBEZZLEMENT FROM THE INSURER;

(II)     WRONGFUL SEQUESTRATION OR DIVERSION OF ASSETS OF
THE INSURER;

(III)    FORGERY OR FRAUD THAT AFFECTS THE INSURER; OR

- 255 -