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§ 3-212. Attorneys in fact and powers of attorney

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 2. Reciprocal Insurers (Refs & Annos)
MD Code, Insurance, § 3-212
§ 3-212. Attorneys in fact and powers of attorney
Currentness
Individual, firm, or corporation as attorney in fact
(a) The attorney in fact of a reciprocal insurer may be an individual, firm, or corporation.
Attorney in fact of foreign or alien reciprocal insurers
(b) The attorney in fact of a foreign or alien reciprocal insurer that is authorized to engage in the insurance business in the State is not considered to be doing business in the State within the meaning of any law of the State that applies to foreign firms or corporations merely because the attorney in fact performs its duties as attorney in fact with respect to the reciprocal insurer's transactions in the State.
Rights and powers provided by subscribers
(c) The attorney in fact of a reciprocal insurer has the rights and powers provided in the power of attorney given the attorney in fact by the subscribers.
Reasonable and equitable terms
(d) The terms of a power of attorney or agreement collateral to the power of attorney must be reasonable and equitable.
Requirements of power of attorney
(e) The power of attorney must state:
(1) the powers of the attorney in fact;
(2) that the attorney in fact is authorized to accept service of process on behalf of the reciprocal insurer in an action against the reciprocal insurer on contracts exchanged;
(3) the general services to be performed by the attorney in fact;
(4) the maximum amount to be deducted from advance premiums or deposits to be paid to the attorney in fact and the general items of expense in addition to losses, to be paid by the reciprocal insurer; and
(5) except as to nonassessable policies, a provision for a contingent several liability of each subscriber in the amount specified in § 3-216 of this subtitle.
Scope of power of attorney
(f) The power of attorney may:
(1) provide for the right of substitution of the attorney in fact and revocation of the power of attorney;
(2) restrict the exercise of the power of attorney as agreed by the subscribers;
(3) provide for the exercise of any right reserved to the subscribers directly or through their advisory committee; and
(4) contain any other lawful provisions considered advisable.
Collateral power of attorney or agreements
(g) For a domestic reciprocal insurer, a power of attorney or agreement collateral to the power of attorney is not effective and may not be used until approved by the Commissioner.

Credits

Added by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997.
Formerly Art. 48A, §§ 281, 285.
MD Code, Insurance, § 3-212, MD INSURANCE § 3-212
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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