Section 3-101 – Scope of Subtitle
This subtitle applies to each stock insurer and each mutual insurer that engages in or proposes to engage in the insurance business in the State.
Section 3-102 – Applicability of General Corporation Statutes and Insurance Article
(a) Except as otherwise specifically provided in this article, each domestic insurer shall comply with the applicable provisions of the Corporations and Associations Article that relate to formation, powers vested in, and duties of corporations formed under the general provisions of the Corporations and Associations Article. (b) Unless a class of corporations to which this subtitle applies […]
Section 3-103 – Formation of Domestic Insurers
(a) A domestic insurer may be formed for insurance purposes under Title 2 of the Corporations and Associations Article. (b) A domestic insurer may be formed either as a mutual insurer or stock insurer, as stated in its articles of incorporation. (c) (1) Each policyholder of a domestic mutual insurer, other than a holder of a reinsurance contract, is […]
Section 3-104 – Approval of Articles of Incorporation and Charter
(a) The articles of incorporation of each domestic insurer and any amendment to its charter must be submitted to the Commissioner for examination and approval before they may be accepted for record by the Department of Assessments and Taxation. (b) Articles of incorporation and articles of amendment are not effective unless the Commissioner, by written endorsement on […]
Section 3-105 – Prerequisites to Solicitation by Prospective Mutual Insurer
(a) A person proposing to form a mutual insurer may not solicit in the State applications or premiums for policies of the proposed mutual insurer until the person provides the Commissioner with specific information about the methods and proposed cost of the promotion. (b) (1) Before a person proposing to form a mutual insurer solicits applications or premiums […]
Section 3-106 – Assets Required for Mutual Insurer — in General
To qualify for a certificate of authority to engage in the insurance business, a mutual insurer must: (1) meet the requirements of § 3-105 of this subtitle; and (2) have received applications and collected cash premiums in an amount that, when added to any other legally available funds, results in unencumbered assets greater than all required reserves […]
Section 3-107 – Assets Required for Mutual Insurer — Engaging in Business on Assessable Basis
(a) A mutual insurer that proposes to or writes assessable policies must comply with all applicable requirements of this article except that the financial requirements of this section apply instead of the requirements of §§ 4-104, 4-105, and 4-106 and Title 5, Subtitle 10 of this article. (b) (1) The mutual insurer must have applications for insurance on […]
Section 3-108 – Engaging in Additional Kinds of Insurance Business
After being authorized to engage in one kind of insurance business, a mutual insurer may be authorized by the Commissioner to engage in additional kinds of insurance business as allowed by § 4-111 of this article if the mutual insurer otherwise complies with this article.
Section 3-109 – Impairment of Required Surplus
(a) If the minimum surplus of a stock insurer required to be maintained by § 4-105 of this article becomes impaired, or if the assets of a mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by §§ 3-106 and 3-107 of this subtitle for authority to engage […]
Section 3-110 – Contingent Liability of Members
(a) (1) Except as provided in § 3-113 of this subtitle for nonassessable policies, each member of a domestic mutual insurer other than a life insurer is contingently liable on a pro rata basis for the discharge of the liabilities of the domestic mutual insurer. (2) The contingent liability provided for by this subsection shall be expressly stated […]