Section 3-127 – Sale of Securities
(a) (1) In this section the following words have the meanings indicated. (2) “Offer to sell” has the meaning stated in the Maryland Securities Act. (3) “Register” means to register securities with the Division of Securities in the Office of the Attorney General in accordance with §§ 11–502 and 11–504 of the Corporations and Associations Article. (4) “Sale” has the […]
Section 3-114 – Participating Policies
(a) A domestic stock insurer or domestic mutual insurer may: (1) issue any or all of its policies with or without participation in profits, savings, or unabsorbed parts of premiums; (2) classify policies issued on a participating and nonparticipating basis; and (3) determine the right to participate and the extent of participation of any class of policies. (b) The classification […]
Section 3-128 – Solicitations in Other States
(a) In this section, “reciprocating state” means a state under the laws of which a prohibition on solicitation similar to that imposed against domestic insurers under this section is imposed on and enforced against insurers domiciled in that state. (b) A domestic insurer may not knowingly solicit insurance business in a reciprocating state in which the domestic […]
Section 3-115 – Dividends
(a) The directors of a domestic mutual insurer periodically may apportion and pay or credit to its members dividends only out of that part of surplus funds that represents net realized savings and net realized earnings in excess of the surplus required by law to be maintained. (b) A dividend that is otherwise proper may be payable […]
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 […]