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§ 3-103. Formation of domestic insurers

West's Annotated Code of MarylandInsuranceEffective: October 1, 2019

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 1. Stock Insurers and Mutual Insurers (Refs & Annos)
Effective: October 1, 2019
MD Code, Insurance, § 3-103
§ 3-103. Formation of domestic insurers
Currentness
In general
(a) A domestic insurer may be formed for insurance purposes under Title 2 of the Corporations and Associations Article.
Formed as mutual or stock insurer
(b) A domestic insurer may be formed either as a mutual insurer or stock insurer, as stated in its articles of incorporation.
Rights and obligations of policyholders
(c)(1) Each policyholder of a domestic mutual insurer, other than a holder of a reinsurance contract, is a member of the mutual insurer, with each right and obligation of membership.
(2) Each policy shall state the provisions of paragraph (1) of this subsection.
(3) Any person, government, governmental unit, state, or political subdivision may be a member of a domestic, foreign, or alien mutual insurer.
(4) An officer, stockholder, trustee, or legal representative of a member:
(i) may be recognized as acting in a representative capacity for or on behalf of the member for the purpose of the membership; and
(ii) is not personally liable on the insurance contract for acting in that representative capacity.
(5) A Maryland corporation may participate as a member of a mutual insurer incidentally to the purpose for which the corporation is organized.
Members of domestic mutual insurers entitled to vote
(d)(1) Each member of a domestic mutual insurer is entitled to one vote, or to the number of votes the bylaws provide, based on:
(i) the insurance in force;
(ii) the number of policies held; or
(iii) the amount of premium paid.
(2) Only the policyholder under a group policy is a member of the mutual insurer and is entitled to vote at the meetings of the mutual insurer.
Board of directors
(e)(1) Except as provided in paragraph (2) of this subsection, the board of directors of a domestic insurer shall have at least nine members.
(2) The board of directors of a domestic financial guaranty insurance company that is prohibited from issuing new policies of financial guaranty insurance shall have at least five members.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2019, c. 234, § 1, eff. Oct. 1, 2019.
MD Code, Insurance, § 3-103, MD INSURANCE § 3-103
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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