reglab/housing_qa huggingface dataset:
MD. Insurance Code Ann. §  3-204 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-204 - Organization and Application for Certificate of Authority

    (a)    Twenty-five or more persons domiciled in the State may organize a domestic reciprocal insurer and may apply to the Commissioner for a certificate of authority to engage in the insurance business as a reciprocal insurer.    (b)    The proposed attorney in fact of the reciprocal insurer shall fulfill the requirements of and shall execute, verify under oath, and file with the Commissioner when applying for a certificate of authority, a declaration that includes:        (1)    the name of the reciprocal insurer;        (2)    the location of the reciprocal insurer’s principal office and of any other office from which policies will be issued;        (3)    each kind of insurance business in which the reciprocal insurer intends to engage;        (4)    the appointment of the Commissioner as agent for service of process in accordance with § 4-107 of this article;        (5)    the name and address of each original subscriber;        (6)    the appointment of the proposed attorney in fact and a copy of the power of attorney;        (7)    the name and address of each officer and each director of the attorney in fact, if the attorney in fact is a corporation, or of each member of the attorney in fact, if the attorney in fact is a firm;        (8)    the powers of the subscribers’ advisory committee;        (9)    the name and term of office of each member of the subscribers’ advisory committee;        (10)    a statement that, after deducting any sum payable to the attorney in fact, all money paid to the reciprocal insurer shall be held in the name of the reciprocal insurer for the purposes stated in the subscribers' agreement;        (11)    a copy of the subscribers' agreement;        (12)    a statement that:            (i)    each original subscriber has applied in good faith for insurance of a kind in which the reciprocal insurer intends to engage; and            (ii)    the reciprocal insurer has received from each original subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than 6 months, at a rate that has been filed with and approved as adequate by the Commissioner;        (13)    a statement of the financial condition of the reciprocal insurer, a schedule of its assets, and a statement that the surplus required by § 3-203 of this subtitle is available; and        (14)    a copy of each policy, endorsement, and application form that the reciprocal insurer proposes to issue or use.    (c)    When applying for a certificate of authority, the proposed attorney in fact shall pay to the Commissioner the applicable fee required by § 2-112 of this article.
MD. Insurance Code Ann. §  3-205 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-205 - Bond of Attorney in Fact

    (a)    (1)    When filing the declaration required by § 3-204 of this subtitle, the attorney in fact of a domestic reciprocal insurer shall file with the Commissioner a bond that:            (i)    is in favor of the State for the benefit of all persons damaged as a result of a breach of the conditions of the bond by the attorney in fact;            (ii)    is in the penal sum of $100,000;            (iii)    is aggregate in form;            (iv)    is executed by the attorney in fact and an authorized corporate surety insurer; and            (v)    is conditioned that the attorney in fact:                1.    will account faithfully for all money and other property of the reciprocal insurer that comes into the possession of the attorney in fact; and                2.    will not withdraw or appropriate for the use of the attorney in fact from the funds of the reciprocal insurer, any money or property to which the attorney in fact is not entitled under the power of attorney.        (2)    The bond is subject to the approval of the Commissioner.    (b)    (1)    An action on the bond of the attorney in fact may be brought at any time by:            (i)    one or more subscribers who suffer loss through a violation of the conditions of the bond; or            (ii)    a receiver or liquidator of the reciprocal insurer.        (2)    Any amount recovered in the action shall be deposited in the funds of the reciprocal insurer.        (3)    The total liability of the surety insurer under the bond may not exceed the penal sum of the bond.    (c)    The bond shall provide that the surety insurer may not cancel the bond unless the surety insurer gives written notice of cancellation to the attorney in fact and the Commissioner at least 30 days before canceling the bond.
MD. Insurance Code Ann. §  3-206 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-206 - Issuance of Certificate of Authority

    After payment of the applicable fee required by § 2-112 of this article, the Commissioner shall issue to the attorney in fact of each reciprocal insurer that meets the requirements of this subtitle a certificate of authority in the name of the reciprocal insurer.
MD. Insurance Code Ann. §  3-207 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-207 - Scope of Certificate of Authority

    (a)    A certificate of authority authorizes a reciprocal insurer to engage in one kind or a combination of kinds of insurance business, except for life insurance and health insurance other than as supplementary coverage in policies of liability insurance.    (b)    A certificate of authority authorizes a reciprocal insurer to purchase reinsurance and grant reinsurance as to any kind of insurance business in which the reciprocal insurer is authorized to engage.
MD. Insurance Code Ann. §  3-208 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-208 - Denials, Suspensions, and Revocations

    In addition to any other grounds for denial, suspension, or revocation of a certificate of authority, the Commissioner may deny, suspend, or revoke a certificate of authority if the attorney in fact of a reciprocal insurer fails to comply with any provision of this article.
MD. Insurance Code Ann. §  3-209 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-209 - Business Name; Authority to Sue

    A reciprocal insurer:         (1)    shall have and use a business name that includes the word “reciprocal”, “interinsurer”, “interinsurance”, “exchange”, “underwriters”, or “underwriting”; and        (2)    may sue and be sued in its own name.
MD. Insurance Code Ann. §  3-210 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-210 - Annual Statement

    The annual statement of a reciprocal insurer shall:         (1)    be made and filed by the attorney in fact of the reciprocal insurer; and        (2)    be supplemented by any additional information required by the Commissioner about the affairs and transactions of the attorney in fact as they relate to the reciprocal insurer.
MD. Insurance Code Ann. §  3-211 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-211 - Financial Condition of Reciprocal Insurer

    (a)    The Commissioner shall determine the financial condition of a reciprocal insurer in accordance with this section.    (b)    (1)    The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits that are delinquent for 90 days or more shall be charged first against the surplus deposits.        (2)    Premium deposits that are delinquent for less than 90 days shall be allowed as assets.        (3)    An assessment levied on subscribers, but not collected, may not be allowed as an asset.        (4)    The contingent liability of subscribers may not be allowed as an asset.    (c)    (1)    The Commissioner shall charge as liabilities the same reserves as are required of incorporated insurers that issue nonassessable policies on a reserve basis.        (2)    The surplus deposits of subscribers may not be charged as a liability.    (d)    The computation of reserves shall be based on premium deposits other than membership fees.    (e)    At any time, the Commissioner may require the attorney in fact of a reciprocal insurer to submit an affidavit that shows the amount of annual savings, not already credited to subscribers, that are due but not paid.
MD. Insurance Code Ann. §  3-212 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-212 - Attorney in Fact; Power of Attorney

    (a)    The attorney in fact of a reciprocal insurer may be an individual, firm, or corporation.    (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.    (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.    (d)    The terms of a power of attorney or agreement collateral to the power of attorney must be reasonable and equitable.    (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.    (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.    (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.
MD. Insurance Code Ann. §  3-213 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-213 - Subscribers

    (a)    An individual, partnership, or corporation of the State may make application, enter into agreement for, hold policies or contracts in or with, and be a subscriber of a domestic, foreign, or alien reciprocal insurer.    (b)    (1)    In addition to the powers specified in its articles of incorporation, a corporation organized under the laws of the State has full power as a subscriber to exchange insurance contracts through a domestic, foreign, or alien reciprocal insurer.        (2)    The right to exchange insurance contracts through a reciprocal insurer is:            (i)    incidental to the purposes for which the corporation is organized; and            (ii)    as fully granted as the powers expressly conferred on the corporation.    (c)    Governments, governmental units, states, political subdivisions of states, boards, associations, estates, trustees, and fiduciaries may exchange reciprocal insurance contracts with each other and with individuals, partnerships, and corporations to the same extent that individuals, partnerships, and corporations may exchange reciprocal insurance contracts.    (d)    An officer, representative, trustee, receiver, or legal representative of a subscriber shall be recognized as acting for or on behalf of the subscriber for the purpose of a reciprocal insurance contract and in that capacity is not personally liable on the reciprocal insurance contract.
MD. Insurance Code Ann. §  3-214 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-214 - Subscribers' Advisory Committee

    (a)    The advisory committee of a domestic reciprocal insurer that exercises the subscribers' rights shall be chosen under rules that the subscribers adopt.    (b)    Not less than two-thirds of the advisory committee shall be subscribers other than the attorney in fact of the reciprocal insurer or a person employed by, representing, or having a financial interest in the attorney in fact.    (c)    The advisory committee shall:        (1)    supervise the finances of the reciprocal insurer;        (2)    supervise the operations of the reciprocal insurer to ensure compliance with the subscribers' agreement and power of attorney;        (3)    procure the audit of the accounts and records of the reciprocal insurer and of the attorney in fact at the expense of the reciprocal insurer; and        (4)    have any additional powers and functions as conferred by the subscribers’ agreement.
MD. Insurance Code Ann. §  3-215 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-215 - Modification of Subscribers' Agreement or Power of Attorney

    (a)    Modification of the terms of the subscribers' agreement or power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney in fact of the reciprocal insurer and the subscribers' advisory committee.    (b)    A modification described in subsection (a) of this section is not effective retroactively and does not apply to an insurance contract issued before the modification.
MD. Insurance Code Ann. §  3-216 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-216 - Liability of Subscribers

    (a)    (1)    Except as to a nonassessable policy, each subscriber has a contingent assessment liability, in the amount stated in the power of attorney or subscriber’s agreement, for payment of losses and expenses incurred while the subscriber's policy is in force.        (2)    The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer is individual, several, and proportionate and is not joint.    (b)    (1)    The contingent liability of each subscriber shall be at the rate of not less than one additional annual premium or premium deposit stated in the policy but not more than 10 times the annual premium or premium deposit.        (2)    The maximum total contingent liability shall be calculated as set forth in § 3-217(e) of this subtitle.    (c)    Each assessable policy issued by a reciprocal insurer shall contain a statement of the contingent liability.
MD. Insurance Code Ann. §  3-217 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-217 - Assessments

    (a)    Assessments periodically may be levied on the subscribers of a domestic reciprocal insurer liable for assessments, as allowed by the terms of the subscribers’ policies, by:        (1)    the attorney in fact of the reciprocal insurer, after approval by the subscribers’ advisory committee and the Commissioner; or        (2)    the Commissioner, in liquidation of the reciprocal insurer.    (b)    (1)    Subject to paragraph (3) of this subsection, each subscriber's share of a deficiency for which an assessment is made shall be calculated by multiplying:            (i)    the premium earned on the subscriber's policy during the period covered by the assessment; by            (ii)    the ratio of the total deficiency to the total premiums earned during that period on all policies subject to the assessment.        (2)    For purposes of calculating the earned premium under this section:            (i)    the gross premium received by the reciprocal insurer for the policy shall be used as a base; and            (ii)    deductions may be taken from the gross premium only for charges that do not recur on the renewal or extension of the policy.        (3)    Each subscriber's share of a deficiency may not exceed the subscriber's total contingent liability under subsection (e) of this section.    (c)    A subscriber may not have an offset against an assessment for which the subscriber is liable because of a claim for an unearned premium or loss payable.    (d)    Each subscriber of a domestic reciprocal insurer with contingent liability is liable for and shall pay the subscriber’s share of an assessment as calculated and limited in accordance with this subtitle if, while the subscriber’s policy is in force or within 3 years after its termination:        (1)    the subscriber is notified by the attorney in fact of the reciprocal insurer or the Commissioner of the intent to levy the assessment; or        (2)    an order is issued that directs the reciprocal insurer to show cause why a receiver, conservator, rehabilitator, or liquidator of the reciprocal insurer should not be appointed.    (e)    One policy or a subscriber to one policy may not be assessed or charged with a total contingent liability for obligations incurred by a domestic reciprocal insurer in one calendar year, in excess of the amount set forth in the power of attorney or subscribers’ agreement calculated solely on the premium earned on the policy during that year.
MD. Insurance Code Ann. §  3-218 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-218 - Extinguishing Subscribers' Liability and Issuance of Nonassessable Policies

    (a)    If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock and surplus required of a domestic stock insurer authorized to engage in like kinds of insurance business, on application of the attorney in fact of the reciprocal insurer and as approved by the subscribers' advisory committee, the Commissioner shall issue a certificate that authorizes the reciprocal insurer to:        (1)    extinguish the contingent liability of subscribers under its policies then in force in the State; and        (2)    omit provisions that impose contingent liability in all policies delivered or issued for delivery in the State as long as the surplus remains unimpaired.    (b)    (1)    The Commissioner may not authorize a domestic reciprocal insurer to extinguish the contingent liability of any of its subscribers or in any of its policies to be issued unless the reciprocal insurer qualifies to extinguish and does extinguish the contingent liability of all of its subscribers and in all of its policies for all kinds of insurance that the reciprocal insurer transacts.        (2)    Notwithstanding paragraph (1) of this subsection, if required by the laws of another state in which the domestic reciprocal insurer is authorized to transact insurance, the domestic reciprocal insurer:            (i)    may issue policies that provide for the contingent liability of its subscribers who acquire policies in that state; and            (ii)    need not extinguish the contingent liability applicable to policies then in force in that state.    (c)    (1)    If the surplus described in subsection (a) of this section becomes impaired, the Commissioner immediately shall revoke the certificate that authorizes the reciprocal insurer to issue nonassessable policies.        (2)    The revocation does not subject a policy then in force to contingent liability for the remainder of the period for which the premium has been paid.        (3)    After revocation of authority to issue nonassessable policies, a reciprocal insurer may not issue or renew a policy without providing for the contingent liability of the subscriber.
MD. Insurance Code Ann. §  3-219 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-219 - Savings

    (a)    (1)    The attorney in fact of a reciprocal insurer:            (i)    periodically may fix and determine savings to be paid to each subscriber or policyholder on participating policies or contracts from the earned surplus of the reciprocal insurer; and            (ii)    after doing so, shall establish an adequate surplus from which the savings are to be paid.        (2)    The attorney in fact may not fix or pay savings if the payment of savings will impair the minimum surplus or other required surplus of the reciprocal insurer.    (b)    (1)    In fixing or paying savings, the attorney in fact may make reasonable classifications of policies or contracts.        (2)    Policies or contracts in the same classification shall be treated without unfair discrimination.        (3)    If the reciprocal insurer offers an alternative method or plan for savings classifications, the policy or contract shall contain an endorsement that states the class to which it is assigned.    (c)    Each reciprocal insurer shall establish a procedure for notifying each policyholder or subscriber about savings fixed and payable under the policyholder’s or subscriber's policy or contract.
MD. Insurance Code Ann. §  3-220 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-220 - Advances of Money

    (a)    This section does not apply to bank loans or to loans for which security is given.    (b)    The attorney in fact of a domestic reciprocal insurer or another person may advance to the reciprocal insurer on reasonable terms any money that the reciprocal insurer requires periodically in its operations.    (c)    (1)    The money advanced to a reciprocal insurer:            (i)    may not be treated as a liability of the reciprocal insurer; and            (ii)    except on liquidation of the reciprocal insurer, may be withdrawn or repaid only out of the reciprocal insurer's realized earned surplus in excess of its minimum required surplus.        (2)    A withdrawal or repayment may be made only with the previous approval of the Commissioner.
MD. Insurance Code Ann. §  3-221 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-221 - Mergers and Conversions

    (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.    (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.    (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.