PARRIS N. GLENDENING, Governor

Ch. 108

(F) "POLICY" INCLUDES AN ANNUITY CONTRACT.

(G) "STOCK COMPANY" MEANS A STOCK INSURANCE COMPANY THAT MEETS
ALL OF THE CURRENT REQUIREMENTS FOR ADMISSION TO DO BUSINESS AS A
DOMESTIC INSURER.

3-402.

(A) IN ADDITION TO OTHER REQUIREMENTS ESTABLISHED UNDER THIS
SUBTITLE, TO BECOME EFFECTIVE, A PLAN SHALL:

(1) MEET THE REQUIREMENTS OF § 3-403 OF THIS SUBTITLE; AND

(2) HAVE BEEN ADOPTED BY AFFIRMATIVE VOTE OF NOT LESS THAN
TWO-THIRDS OF THE BOARD OF DIRECTORS OF THE MUTUAL INSURER.

(B) AT ANY TIME BEFORE APPROVAL OF A PLAN BY THE COMMISSIONER, THE
MUTUAL COMPANY MAY AMEND OR WITHDRAW THE PLAN BY THE AFFIRMATIVE
VOTE OF NOT LESS THAN TWO-THIRDS OF ITS BOARD OF DIRECTORS.

(C) (1) BEFORE ELIGIBLE MEMBERS MAY VOTE ON APPROVAL OF A PLAN,
THE BOARD OF DIRECTORS SHALL HAVE ADOPTED THE PLAN AND FILED THE
FOLLOWING DOCUMENTS WITH THE COMMISSIONER WITHIN 90 DAYS AFTER
ADOPTION:

(I) THE PLAN, INCLUDING THE INDEPENDENT EVALUATION OF
PRO-FORMA MARKET VALUE REQUIRED BY § 3-403(D) OF THIS SUBTITLE;

(II) THE FORM OF NOTICE REQUIRED BY SUBSECTION (G) OF THIS

SECTION;

(III) THE FORM OF PROXY TO BE SOLICITED FROM ELIGIBLE
MEMBERS UNDER SUBSECTION (II) OF THIS SECTION;

(IV) THE FORM OF NOTICE REQUIRED BY § 3-408 OF THIS SUBTITLE
TO PERSONS WHOSE POLICIES ARE ISSUED AFTER ADOPTION OF THE PLAN BUT
BEFORE ITS EFFECTIVE DATE;

(V) THE PROPOSED AMENDED ARTICLES OF INCORPORATION AND
BYLAWS OF THE CONVERTED STOCK COMPANY;

(VI) THE ACQUISITION OF CONTROL STATEMENT, AS REQUIRED BY
§ 7-304 OF THIS ARTICLE; AND

(VII) ANY OTHER INFORMATION REQUESTED BY THE

COMMISSIONER.

(2) ON FILING OF THE DOCUMENTS ENUMERATED UNDER PARAGRAPH
(1) OF THIS SUBSECTION, THE MUTUAL COMPANY SHALL SEND TO ELIGIBLE
MEMBERS A NOTICE ADVISING THEM:

(I) THE ADOPTION AND FILING OF THE PLAN,

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