Home Table of Contents

§ 3-127. Filing and registration requirements for sale of securities

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 1. Stock Insurers and Mutual Insurers (Refs & Annos)
MD Code, Insurance, § 3-127
§ 3-127. Filing and registration requirements for sale of securities
Currentness
Definitions
(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 meaning stated in the Maryland Securities Act.1
Application of filing requirements
(b)(1) The filing requirements of subsections (c) and (d) of this section apply to a person that engages in, proposes to engage in, or assists in the promotion or formation of:
(i) a domestic insurer;
(ii) an insurance holding corporation; or
(iii) a corporation that finances:
1. a domestic insurer or the production of its business; or
2. an insurance holding corporation or the production of its business.
(2) This section does not apply to a person that is or will be an affiliate of an authorized insurer that is a member of an insurance holding company registered with the Commissioner under § 7-601 of this article.
Copy of registration filed with Commissioner
(c) Within 5 days after a registration is filed with the Division of Securities, a person that is required to register a proposed sale or offer to sell securities under the Maryland Securities Act shall file with the Commissioner a copy of that registration.
Construction with Corporations and Associations Article
(d) At least 30 days before the proposed sale or offer to sell securities, a person that is exempt under § 11-602(9) and (10) of the Corporations and Associations Article from the registration requirements of §§ 11-502 and 11-504 of the Corporations and Associations Article shall file with the Commissioner the information otherwise required by § 11-502 or § 11-504 of the Corporations and Associations Article.
Cease and desist orders
(e)(1) If the Commissioner determines that a person has engaged in or is about to engage in an act or practice that violates this section, the Commissioner, without notice and before a hearing, may issue and cause to be served on the person an order to cease and desist from engaging in the acts for which filing is required under this section.
(2)(i) Unless postponed by mutual consent of the parties, the Commissioner shall hold a hearing within 30 days after the date of the order.
(ii) The Commissioner shall provide notice of the hearing to each party.
Enforcement by Commissioner
(f) The Commissioner has the enforcement powers listed in §§ 2-201 and 2-203 of this article.
Civil penalties for violation of section
(g)(1) In addition to any penalty otherwise applicable under this article, the Commissioner may impose a civil penalty not exceeding $500 for each violation of this section.
(2) Each day a violation of this section continues is a separate violation.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2017, c. 62, § 6.
Formerly Art. 48A, § 31A.

Footnotes

1
Corporations and Associations, § 11-101 et seq.
MD Code, Insurance, § 3-127, MD INSURANCE § 3-127
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.
End of Document