PARRIS N. GLENDENING, Governor

Ch. 35

(3) IN FURTHERANCE OF THIS STATE INTEREST, THE GENERAL
ASSEMBLY PROVIDES A METHOD OF SUBSTITUTED SERVICE OF PROCESS ON THOSE
UNAUTHORIZED INSURERS DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION.

(4) THE GENERAL ASSEMBLY DECLARES THAT BY ENACTING THIS
SUBTITLE, THE GENERAL ASSEMBLY IS EXERCISING:

(I) ITS POWER TO PROTECT THE RESIDENTS OF THE STATE; AND

(II) ITS POWERS AND PRIVILEGES UNDER THE
MCCARRAN-FERGUSON ACT, 15 U.S.C. §§ 1011 THROUGH 1015.

(B) ADDITIONAL POWER.

THE AUTHORITY PROVIDED IN THIS SUBTITLE IS IN ADDITION TO ANY OTHER
POWERS OF THE STATE.

(C) LIBERAL CONSTRUCTION.

THIS SUBTITLE SHALL BE CONSTRUED LIBERALLY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 236.

In subsection (a)(1) of this section, the phrase "by placing in or sending into
the State false advertising designed to induce residents of the State to buy
insurance from them" is substituted for the former phrase "in the manner set
forth in the preceding sentence" for clarity.

In subsection (a)(4)(ii) of this section, the reference to the
"McCarran-Ferguson Act, 15 U.S.C. §§ 1011 through 1015" is substituted for
the former reference to "Public Law 15, 79th Congress of the United States,
Chapter 20, 1st Session, s. 340, which declares that the business of insurance
and every person engaged therein shall be subject to the laws of the several
states" to use the short title of the Act and the commonly used citation for
that Act.

Defined terms: "Commissioner" § 1-101
"Insurance" § 1-101
"Resident" § 27-701
"Unauthorized insurer" § 1-101

27-703, MISREPRESENTATION BY UNAUTHORIZED INSURER PROHIBITED.

AN UNAUTHORIZED FOREIGN INSURER OR UNAUTHORIZED ALIEN INSURER
MAY NOT MAKE, ISSUE, CIRCULATE, OR CAUSE TO BE MADE, ISSUED, OR
CIRCULATED TO RESIDENTS OF THE STATE AN ESTIMATE, ILLUSTRATION,
CIRCULAR, PAMPHLET, OR LETTER, OR CAUSE TO BE MADE IN A NEWSPAPER,
MAGAZINE, OR OTHER PUBLICATION OR OVER A RADIO OR TELEVISION STATION
AN ANNOUNCEMENT OR STATEMENT TO RESIDENTS THAT MISREPRESENTS THE
INSURER'S FINANCIAL CONDITION, THE TERMS OF OR BENEFITS OR ADVANTAGES
PROMISED BY INSURANCE CONTRACTS ISSUED OR TO BE ISSUED, OR THE

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