reglab/housing_qa huggingface dataset:
MD. Insurance Code Ann. §  3-114 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-114 - Participating Policies

    (a)    A domestic stock insurer or domestic mutual insurer may:        (1)    issue any or all of its policies with or without participation in profits, savings, or unabsorbed parts of premiums;        (2)    classify policies issued on a participating and nonparticipating basis; and        (3)    determine the right to participate and the extent of participation of any class of policies.    (b)    The classification of policies or determination of participation under subsection (a) of this section shall be reasonable and may not discriminate unfairly between policyholders within the same classifications.    (c)    A life insurer may issue both participating and nonparticipating policies only if the right or absence of the right to participate is reasonably related to the premium charged.
MD. Insurance Code Ann. §  3-115 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-115 - Dividends

    (a)    The directors of a domestic mutual insurer periodically may apportion and pay or credit to its members dividends only out of that part of surplus funds that represents net realized savings and net realized earnings in excess of the surplus required by law to be maintained.    (b)    A dividend that is otherwise proper may be payable out of the domestic mutual insurer’s net realized savings and net realized earnings even though the domestic mutual insurer’s total surplus is then less than its total contributed surplus.
MD. Insurance Code Ann. §  3-116 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-116 - Loans to Insurers

    (a)    (1)    A director, officer, or member of a stock insurer or mutual insurer or any other person may lend or advance to the stock insurer or mutual insurer any money necessary to enable it to comply with a surplus requirement or any other requirement of law.        (2)    The instrument evidencing a loan or advance under this subsection shall:            (i)    be approved as to form and content by the Commissioner; and            (ii)    contain provisions that specify that:                1.    the instrument is subordinate to policyholders, claimant and beneficiary claims, and all other classes of creditors other than surplus note holders; and                2.    interest payments and principal repayments may not be made without prior approval of the Commissioner.        (3)    A loan or advance under this subsection and any interest on it:            (i)    is payable only out of the surplus remaining after the stock insurer or mutual insurer provides for all reserves and other liabilities; and            (ii)    is not otherwise a liability or claim against the stock insurer or mutual insurer or any of its assets.    (b)    (1)    Proceeds of a loan or advance under this section shall be in the form of cash or other admitted assets having readily determinable values and liquidity satisfactory to the Commissioner.        (2)    In each annual statement, a stock insurer or mutual insurer shall report the amount of each loan or advance made under this section.
MD. Insurance Code Ann. §  3-117 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-117 - Loans to and Guarantees of Obligations of Directors and Officers

    (a)    (1)    Except as provided in subsection (d) of this section, an authorized insurer or its subsidiary may not make, directly or indirectly, a loan to a director or executive officer of the authorized insurer unless the loan:            (i)    is a bona fide mortgage loan made on a principal residence of the director or executive officer; and            (ii)    is approved or ratified by the board of directors of the authorized insurer.        (2)    A director or executive officer may not accept, directly or indirectly, a loan prohibited by paragraph (1) of this subsection.    (b)    An authorized insurer may not make an advance to a director or executive officer of the authorized insurer for future services to be performed more than 1 year after the date of making the advance.    (c)    (1)    An authorized insurer or its affiliate or subsidiary may not guarantee, directly or indirectly, the financial obligation of a director or executive officer of the authorized insurer, affiliate, or subsidiary.        (2)    A guarantee made in violation of this subsection is void.        (3)    This subsection does not prohibit an insurer from making or entering into an insurance contract or surety bond that is authorized by its articles of incorporation for a director or executive officer.    (d)    This section does not prohibit a life insurer from making a policy loan to a director or executive officer of the life insurer on a policy or contract of the life insurer in an amount not exceeding the loan value of the policy or contract.
MD. Insurance Code Ann. §  3-118 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-118 - Agreements to Pay Expenses of Management

    A domestic stock insurer or domestic mutual insurer may not enter into an agreement in which a person agrees to pay all or part of the expenses of management of the domestic stock insurer or domestic mutual insurer in consideration of an agreement to pay to the person commissions on premiums due the domestic stock insurer or domestic mutual insurer or any other compensation for the person’s services.
MD. Insurance Code Ann. §  3-120 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-120 - Conversion of Stock Insurer to Mutual Insurer

    (a)    This section does not apply to mutualization under a court order in connection with the rehabilitation or reorganization of an insurer under Title 9, Subtitle 2 of this article.    (b)    A domestic stock insurer, other than a title insurer, may become a mutual insurer under a plan and procedure that is approved by the Commissioner after a hearing.    (c)    The Commissioner may not approve a plan or procedure for mutualization unless:        (1)    the plan or procedure is equitable to stockholders and policyholders;        (2)    the plan is subject to approval by vote of the holders of at least three-fourths of the insurer’s outstanding capital stock with voting rights and by vote of at least two-thirds of the insurer’s policyholders who vote on the plan in person, by proxy, or by mail under the notice and procedure approved by the Commissioner;        (3)    for a life insurer, the right to vote under item (2) of this subsection is limited to holders of policies, other than term or group policies, that have been in force for more than 1 year;        (4)    mutualization will result in retirement of shares of the insurer’s capital stock at a price not exceeding the fair market value of the stock as determined by competent disinterested appraisers;        (5)    the plan provides for the purchase of the stock of an objecting stockholder in the same manner and subject to the same applicable conditions provided by Title 3, Subtitle 2 of the Corporations and Associations Article for the rights of objecting stockholders with respect to consolidation or merger of corporations;        (6)    the plan provides for definite conditions to be fulfilled by a designated early date on which the mutualization will be considered effective; and        (7)    the mutualization leaves the insurer with surplus funds that are reasonably adequate for the security of its policyholders and to enable the insurer to continue successfully in business in the states where it is then authorized to transact insurance business for the kinds of insurance included in its certificates of authority in those states.
MD. Insurance Code Ann. §  3-122 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-122 - Consolidations, Mergers, and Share Exchanges of Stock Insurers

    (a)    Except as otherwise provided in this section, the provisions of the Corporations and Associations Article on the consolidation, merger, and share exchange of stock corporations apply to the consolidations, mergers, and share exchanges of domestic stock insurers and domestic and foreign stock insurers.    (b)    The articles of consolidation, merger, or share exchange of stock insurers must be submitted to the Commissioner for examination and approval before the articles may be accepted for record by the Department of Assessments and Taxation.    (c)    (1)    Before approval of the articles of consolidation or merger, the Commissioner shall examine and review the affairs of the stock insurers involved in the consolidation or merger as the Commissioner finds necessary or desirable.        (2)    The Commissioner may hold a hearing on the proposed consolidation or merger after giving the notice that the Commissioner considers appropriate.    (d)    The Commissioner shall approve the articles of consolidation or merger by written endorsement on them before they become operative if the Commissioner finds that:        (1)    the articles comply with the Code; and        (2)    the policyholders in the successor stock insurer are protected through adequate reserves and assets for losses and claims then anticipated.    (e)    The successor stock insurer shall bear all expenses in connection with proceedings conducted by the Commissioner under this section.
MD. Insurance Code Ann. §  3-123.1 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-123.1 - Mutual Insurers Forming a Business Combination

    (a)    Unless otherwise prohibited under this article and subject to the prior approval of the Commissioner, one or more mutual insurers organized under the laws of any state may form a business combination with one or more domestic mutual insurers for the purpose of purchasing reinsurance or other financial services.    (b)    (1)    Mutual insurers forming a business combination under this section shall enter into a written agreement that prescribes the terms and conditions of the business combination.        (2)    The agreement shall be approved by the vote of the majority of the board of directors of each mutual insurer.    (c)    The Commissioner may adopt regulations concerning the formation of business combinations under this section.
MD. Insurance Code Ann. §  3-124 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-124 - Bulk Reinsurance -- Stock Insurers

    (a)    A domestic stock insurer may reinsure with another insurer all or substantially all of its insurance in force or a major class of its insurance in force by an agreement of bulk reinsurance.    (b)    (1)    An agreement of bulk reinsurance is not effective unless it is filed with and approved by the Commissioner.        (2)    The Commissioner shall approve the agreement within a reasonable time after it is filed unless the Commissioner finds that the agreement:            (i)    is inequitable to the stockholders of the domestic stock insurer; or            (ii)    would substantially reduce the protection of or service to the policyholders of the domestic stock insurer.        (3)    If the Commissioner does not approve the agreement, the Commissioner shall notify the domestic stock insurer in writing of the disapproval and specify the reasons for disapproval.
MD. Insurance Code Ann. §  3-125 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-125 - Bulk Reinsurance -- Mutual Insurers

    (a)    After compliance with this section, a domestic mutual insurer may reinsure with a stock insurer or mutual insurer all or substantially all of its insurance in force or a major class of its insurance in force by an agreement of bulk reinsurance.    (b)    (1)    An agreement of bulk reinsurance is not effective unless it is filed with and approved by the Commissioner in writing after a hearing.        (2)    The Commissioner shall approve the agreement within a reasonable time after it is filed if the Commissioner finds that the agreement:            (i)    is equitable to each domestic insurer involved; and            (ii)    would not reduce substantially the protection of or service to the policyholders of each domestic insurer involved.        (3)    If the Commissioner does not approve the agreement, the Commissioner shall notify each insurer involved in writing of the disapproval and specify the reasons for disapproval.    (c)    (1)    In accordance with reasonable notice and procedure approved by the Commissioner, the plan and agreement for bulk reinsurance must be approved by vote of at least two-thirds of each domestic mutual insurer’s members who vote on the agreement at meetings of the members called for that purpose.        (2)    For a life insurer, the right to vote may be limited to members with policies, other than term or group policies, that have been in force for more than 1 year.    (d)    (1)    If the agreement is for reinsurance of a mutual insurer in a stock insurer, the agreement must provide for payment in cash to each member of the insurer who is entitled to payment as on conversion of a mutual insurer to a stock insurer under § 3-121 of this subtitle.        (2)    Each member shall be paid the member’s equity in the insurance that is reinsured as determined under a fair formula approved by the Commissioner.        (3)    Each member’s equity shall be based on the member’s equity in the reserves, assets, whether or not admitted assets, and surplus, if any, of the mutual insurer to be taken over by the stock insurer.
MD. Insurance Code Ann. §  3-126 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-126 - Changes in Domicile of Insurers

    (a)    (1)    A foreign insurer authorized to engage in the insurance business in the State may become a domestic insurer by:            (i)    complying with all requirements of the law relating to the formation and organization of a domestic insurer; and            (ii)    designating its principal place of business in the State.        (2)    On becoming a domestic insurer, the insurer:            (i)    is entitled to the certificates and licenses to transact insurance business in this State that are issued to domestic insurers;            (ii)    shall be recognized in all respects as an insurer formed under the laws of this State as of the date of authorization as an insurer in its original domiciliary state; and            (iii)    is subject to the authority and jurisdiction of the State.    (b)    (1)    When a foreign insurer authorized to engage in the insurance business in this State transfers its corporate domicile to this State or another state by merger, consolidation, or other lawful method, the certificate of authority, appointments of agents, rates, and other issues that are subject to the Commissioner’s approval and that are in existence at the time of the transfer remain in effect after the transfer if the insurer at all times remains qualified to engage in the insurance business in this State.        (2)    All outstanding policies of a transferring insurer remain in effect and need not be endorsed with the new name of the insurer or the new domiciliary and location of the insurer unless the Commissioner so orders.        (3)    A transferring insurer:            (i)    may file new policy forms with the Commissioner on or before the effective date of the transfer; or            (ii)    if allowed by and under conditions approved by the Commissioner, may use any existing policy form previously filed with the Commissioner with appropriate endorsements.        (4)    A foreign insurer that transfers its domicile to another state shall:            (i)    notify the Commissioner of the details of the proposed transfer; and            (ii)    file promptly with the Commissioner any resulting amendments to corporate documents and other items on file with the Commissioner.
MD. Insurance Code Ann. §  3-127 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-127 - Sale of Securities

    (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.    (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.    (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.    (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.    (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.    (f)    The Commissioner has the enforcement powers listed in §§ 2–201 and 2–203 of this article.    (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.
MD. Insurance Code Ann. §  3-128 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 1 - Stock Insurers and Mutual Insurers|Section 3-128 - Solicitations in Other States

    (a)    In this section, “reciprocating state” means a state under the laws of which a prohibition on solicitation similar to that imposed against domestic insurers under this section is imposed on and enforced against insurers domiciled in that state.    (b)    A domestic insurer may not knowingly solicit insurance business in a reciprocating state in which the domestic insurer is not licensed as an authorized insurer.    (c)    This section does not prohibit advertising through publication or by radio, television, or other broadcasts originating outside the reciprocating state if:        (1)    the insurer is licensed to engage in the insurance business in a majority of the states in which the advertising is disseminated; and        (2)    the advertising is not specifically directed to residents of the reciprocating state.    (d)    This section does not prohibit:        (1)    insurance covering persons or risks located in a reciprocating state under contracts solicited and issued in states in which the insurer is then licensed; or        (2)    insurance effectuated by the insurer as an unauthorized insurer under the laws of the reciprocating state.    (e)    If the Commissioner finds, after a hearing, that a domestic insurer has violated this section, the Commissioner shall suspend or revoke the certificate of authority of the domestic insurer.
MD. Insurance Code Ann. §  3-201 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-201 - "Subscriber" Defined

    In this subtitle, “subscriber” means a person that exchanges a mutual agreement of indemnity with other persons through a common attorney in fact.
MD. Insurance Code Ann. §  3-202 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-202 - Scope of Subtitle

    Except as expressly provided otherwise in this subtitle, this subtitle applies to foreign reciprocal insurers and to domestic reciprocal insurers.
MD. Insurance Code Ann. §  3-203 (2021)
2021 Maryland Statutes|Insurance|Title 3 - Kinds of Insurers|Subtitle 2 - Reciprocal Insurers|Section 3-203 - Qualifications of Reciprocal Insurers

    (a)    A reciprocal insurer may be authorized to engage in the insurance business if the reciprocal insurer meets the requirements of this section and is otherwise in compliance with the applicable provisions of this article.    (b)    To write assessable policies, a reciprocal insurer must have surplus funds of not less than:        (1)    $375,000 for one kind of insurance business; and        (2)    $750,000 for two or more kinds of insurance business.    (c)    To write nonassessable policies, a reciprocal insurer must:        (1)    have surplus funds of not less than:            (i)    $750,000 for one kind of insurance business; and            (ii)    $1,500,000 for two or more kinds of insurance business; and        (2)    comply with the deposit requirements of § 4-106 of this article.