S.B. 844

VETOES

SECTION 5. 9. AND BE IT FURTHER ENACTED, That, subject to the
provisions of Section 7 of this Act, Sections 1 and 3 of this Act shall take effect October
1, 1997.

May 22, 1997

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today

vetoed Senate Bill 844.

This bill authorizes, subject to the approval of the Insurance Commissioner, a domestic
mutual insurance company to acquire or form a subsidiary insurance holding company.

House Bill 1318, which was passed by the General Assembly and signed by me on April
29, 1997, accomplishes the same purpose. Therefore, it is not necessary for me to sign
Senate Bill 844.

Sincerely,

Parris N. Glendening

Governor

Senate Bill No. 844

AN ACT concerning

Insurance Regulation - Domestic Mutual Companies and Stock Companies

FOR the purpose of eliminating the maximum interest rate allowed for certain loans to
mutual companies under certain circumstances; repealing a certain prohibition
against a commission or promotion expense being paid in connection with a loan or
advance to a stock insurer or mutual insurer under certain circumstances; altering a
certain requirement that agreements involving mergers or consolidations of certain
domestic mutual insurers be submitted to members and subject to a certain vote by
members; authorizing a domestic mutual insurance company to acquire or form a
subsidiary holding company under certain circumstances; making this Act an
emergency measure; and generally relating to regulation of mutual insurers and
stock insurers.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 266(a) and 272(a)
Annotated Code of Maryland
(1994 Replacement Volume and 1996 Supplement)

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