§ 3-120. Conversion of stock insurer to mutual insurer
West's Annotated Code of MarylandInsurance
MD Code, Insurance, § 3-120
§ 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 a hearing.
(c) The Commissioner may not approve a plan or procedure for mutualization unless:
(2) the plan is subject to approval by vote of the holders of at least three-fourths of the insurer's outstanding capital stock with voting rights and by vote of at least two-thirds of the insurer's policyholders who vote on the plan in person, by proxy, or by mail under the notice and procedure approved by the Commissioner;
(5) the plan provides for the purchase of the stock of an objecting stockholder in the same manner and subject to the same applicable conditions provided by Title 3, Subtitle 2 of the Corporations and Associations Article for the rights of objecting stockholders with respect to consolidation or merger of corporations;
(7) the mutualization leaves the insurer with surplus funds that are reasonably adequate for the security of its policyholders and to enable the insurer to continue successfully in business in the states where it is then authorized to transact insurance business for the kinds of insurance included in its certificates of authority in those states.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 269.
MD Code, Insurance, § 3-120, MD INSURANCE § 3-120
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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