Section 3-116 – Loans to Insurers
(a) (1) A director, officer, or member of a stock insurer or mutual insurer or any other person may lend or advance to the stock insurer or mutual insurer any money necessary to enable it to comply with a surplus requirement or any other requirement of law. (2) The instrument evidencing a loan or advance under this subsection […]
Section 3-117 – Loans to and Guarantees of Obligations of Directors and Officers
(a) (1) Except as provided in subsection (d) of this section, an authorized insurer or its subsidiary may not make, directly or indirectly, a loan to a director or executive officer of the authorized insurer unless the loan: (i) is a bona fide mortgage loan made on a principal residence of the director or executive officer; and (ii) is […]
Section 3-118 – Agreements to Pay Expenses of Management
A domestic stock insurer or domestic mutual insurer may not enter into an agreement in which a person agrees to pay all or part of the expenses of management of the domestic stock insurer or domestic mutual insurer in consideration of an agreement to pay to the person commissions on premiums due the domestic stock […]
Section 3-119 – Restrictions on Purchase and Sale of Equity Securities of Domestic Stock Insurers
(a) In this section, “equity security” means: (1) stock or a similar security; (2) a security convertible, with or without consideration, into stock or a similar security; (3) a security carrying a warrant or right to subscribe to or purchase stock or a similar security; (4) any other warrant or right to subscribe to or purchase stock or a similar […]
Section 3-120 – Conversion of Stock Insurer to Mutual Insurer
(a) This section does not apply to mutualization under a court order in connection with the rehabilitation or reorganization of an insurer under Title 9, Subtitle 2 of this article. (b) A domestic stock insurer, other than a title insurer, may become a mutual insurer under a plan and procedure that is approved by the Commissioner after […]
Section 3-121 – Conversion of Mutual Insurer to Stock Insurer
(a) A domestic mutual insurer may become a stock insurer under a plan and procedure that is approved by the Commissioner. (b) The Commissioner may not approve a plan or procedure for conversion of a mutual insurer to a stock insurer unless: (1) the plan or procedure is equitable to the insurer’s members; (2) the plan is subject to […]
Section 3-121.1 – Mutual Insurer Reorganization as Stock Insurer; Establishment of Mutual Insurance Holding Company
(a) (1) In this section the following words have the meanings indicated. (2) “Mutual insurance holding company” means a nonstock corporation that: (i) is incorporated in the State in accordance with a plan of reorganization adopted and approved under this section; and (ii) is the parent of a reorganized stock insurer. (3) “Reorganized stock insurer” means the stock corporation into which […]
Section 3-122 – Consolidations, Mergers, and Share Exchanges of Stock Insurers
(a) Except as otherwise provided in this section, the provisions of the Corporations and Associations Article on the consolidation, merger, and share exchange of stock corporations apply to the consolidations, mergers, and share exchanges of domestic stock insurers and domestic and foreign stock insurers. (b) The articles of consolidation, merger, or share exchange of stock insurers must […]
Section 3-123 – Consolidations and Mergers of Mutual Insurers
(a) (1) One or more mutual insurers organized under the laws of any state may consolidate or merge with one or more domestic mutual insurers to form a domestic mutual insurer. (2) The successor mutual insurer may continue the corporate existence of one or more of the domestic parties to the consolidation or merger. (b) (1) Mutual insurers consolidating or […]
Section 3-123.1 – Mutual Insurers Forming a Business Combination
(a) Unless otherwise prohibited under this article and subject to the prior approval of the Commissioner, one or more mutual insurers organized under the laws of any state may form a business combination with one or more domestic mutual insurers for the purpose of purchasing reinsurance or other financial services. (b) (1) Mutual insurers forming a business combination […]