§ 3-121. Conversion of mutual insurer to stock insurer
West's Annotated Code of MarylandInsurance
MD Code, Insurance, § 3-121
§ 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:
(9) the plan provides for payment to each policyholder who elects not to apply the policyholder's equity in the insurer for or on the purchase price of stock to which the policyholder is preemptively entitled, in cash in an amount that equals not less than 50% of the amount of the policyholder's equity that was not used for the purchase of stock, and which payment, together with any stock purchased, constitutes full payment and discharge of the policyholder's equity as an owner of the insurer; and
(c) Within 60 days of the filing of a plan that contains all of the information required under this section and any regulations adopted under this section, the Commissioner shall approve or disapprove the plan.
(d) At the expense of the mutual insurer, the Commissioner may retain any qualified expert who is not a part of the staff of the Commissioner to assist in reviewing the plan.
(e) After written notice to the mutual insurer and any other interested person, the Commissioner may hold a hearing on whether the terms of the plan comply with this section.
(f)(1) If a mutual insurer is insolvent or, in the judgment of the Commissioner, is in a hazardous financial condition, the board of directors of the mutual insurer, by a majority vote, may request by a petition, as provided under paragraph (2) of this subsection, that the Commissioner waive the requirements concerning notice to, and approval by, policyholders of the planned conversion.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 108, § 2, eff. Oct. 1, 1997.
Formerly Art. 48A, § 270.
MD Code, Insurance, § 3-121, MD INSURANCE § 3-121
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.
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