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§ 3-221. Mergers and conversions

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, § 3-221
§ 3-221. Mergers and conversions
Currentness
In general
(a) A domestic reciprocal insurer may merge with another reciprocal insurer or be converted to a stock insurer or mutual insurer if:
(1) at least two-thirds of the subscribers who vote on the merger or conversion after notice vote in favor of the merger or conversion; and
(2) the Commissioner approves the terms of the merger or conversion.
Grounds for approval by Commissioner
(b) The Commissioner may not approve a plan for merger or conversion unless:
(1) the plan is equitable to subscribers; and
(2) for conversion to a stock insurer, the plan gives each subscriber:
(i) preferential right to acquire stock of the proposed stock insurer proportionate to the subscriber's interest in the reciprocal insurer; and
(ii) a reasonable length of time to exercise the preferential right.
Capital or surplus requirements of successor insurer
(c) If a domestic reciprocal insurer converts to a stock insurer or mutual insurer, the successor stock insurer or mutual insurer is subject to the same capital or surplus requirements and has the same rights as a like domestic insurer that transacts like kinds of insurance business.

Credits

Added by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997.
Formerly Art. 48A, § 300.
MD Code, Insurance, § 3-221, MD INSURANCE § 3-221
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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