PARRIS N. GLENDENING, Governor

Ch. 35

(2) NOTWITHSTANDING A COMBINATION CONTRACT, TYING
AGREEMENT, UNDERSTANDING, OR CONDITION TO THE CONTRARY, THE PERSON
REQUIRED TO BUY OR PAY FOR INSURANCE OR TO BID EX-INSURANCE MAY
SUBSTITUTE AT ANY TIME OTHER INSURANCE FROM AGENTS, BROKERS, OR
INSURERS CHOSEN BY THE PERSON, OR MAY DECLINE FURTHER INSURANCE
COVERAGE IF THE INSURANCE IS OTHER THAN TO PROTECT THE INTEREST OF A
LENDER, PROPERTY OWNER, OR OTHER PERSON.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 228(a), (b), and (c).

Former Art. 48A, § 228(d), which provided that former § 228 may not be
construed to invalidate any other provision of Art. 48A, is deleted as
unnecessary. This revised section contains no implication that it invalidates
any other provision of this article.

Defined terms: "Agent" § 1-101
"Broker" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101
"Person" § 1-101

27-215. INTERLOCKING OWNERSHIP OR MANAGEMENT.

(A) IN GENERAL.

AN INSURER MAY RETAIN, INVEST IN, OR ACQUIRE ALL OR PART OF THE
CAPITAL STOCK OF ANOTHER INSURER OR HAVE COMMON MANAGEMENT WITH
ANOTHER INSURER, UNLESS THE RETENTION, INVESTMENT, ACQUISITION, OR
COMMON MANAGEMENT IS INCONSISTENT WITH ANOTHER PROVISION OF THIS
ARTICLE OR CAUSES THE BUSINESS OF THE INSURERS WITH THE PUBLIC TO BE
CONDUCTED IN A MANNER THAT SUBSTANTIALLY LESSENS COMPETITION
GENERALLY IN THE INSURANCE BUSINESS OR TENDS TO CREATE A MONOPOLY IN
THE INSURANCE BUSINESS.

(B) COMMON DIRECTORS.

AN INDIVIDUAL OTHERWISE QUALIFIED MAY BE DIRECTOR OF TWO OR MORE
INSURERS THAT ARE COMPETITORS, UNLESS THE EFFECT SUBSTANTIALLY LESSENS
COMPETITION BETWEEN INSURERS GENERALLY OR TENDS MATERIALLY TO
CREATE A MONOPOLY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 229.

In subsection (b) of this section, the reference to an "individual" otherwise
qualified is substituted for the former reference to a "person" because
individuals qualify to be directors of insurers.

Defined terms: "Insurance business" § 1-101
"Insurer" § 1-101

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