(a) The General Assembly finds that the public interest and the interest of policyholders and stockholders may be adversely affected when:
(1) control of an insurer is sought by a person that would use that control adversely to the best interest of policyholders or stockholders;
(2) acquisition of control of an insurer would substantially lessen competition or create a monopoly in the insurance business in the State;
(3) an insurer that is part of an insurance holding company system enters into transactions or relationships with affiliates on terms that are not fair and reasonable; or
(4) an insurer pays to stockholders dividends that jeopardize the financial condition of the insurer.
Purposes of title
(b) The purposes of this title include promoting the public interest by:
(1) requiring disclosures in acquisitions or mergers;
(2) requiring disclosures of material transactions, relationships between an insurer and its affiliates, and dividends to stockholders paid by insurers;
(3) requiring disclosures of relevant information about changes in control of insurers;
(4) providing standards governing material transactions between an insurer and its affiliates; and
(5) establishing penalties for failure to disclose and providing for the disapproval of certain transactions.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2013, c. 115, § 1, eff. Jan. 1, 2014.
Formerly Art. 48A, § 491.
MD Code, Insurance, § 7-102, MD INSURANCE § 7-102
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
