reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 3 - Acquisition of Control of Domestic Insurer or Insurance Holding Company › Section 7-309 - Failure to File Statement or Making Unauthorized Acquisition or Divestiture

A person violates this title if:
(1)    the person fails to file the statement required by this subtitle;
(2)    without the Commissioner’s approval during the 60–day period under § 7–306(a) of this subtitle, or after the Commissioner’s disapproval, the person makes or attempts to make an acquisition of actual or presumed control of, or a merger with, a domestic insurer or a person, including an insurance holding company, that controls a domestic insurer; or
(3)    without the Commissioner’s approval during the 30–day period under § 7–303(d) of this subtitle, or after the Commissioner’s disapproval, the person divests or attempts to divest actual or presumed control of a domestic insurer or a person, including an insurance holding company, that controls a domestic insurer.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 4 - Acquisition of Control of Insurer › Section 7-401 - Acquisitions Subject to Subtitle

Except as provided in § 7-402 of this subtitle, this subtitle applies to any acquisition, agreement, arrangement, or activity, including the acquisition of voting securities or assets, bulk reinsurance, and merger, that results in a person acquiring directly or indirectly the control of an authorized insurer.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 4 - Acquisition of Control of Insurer › Section 7-402 - Transactions Excluded From Subtitle

This subtitle does not apply to:
(1)    an acquisition that is subject to the approval or disapproval of the Commissioner under Subtitle 3 of this title;
(2)    a purchase of securities solely for investment purposes if the securities are not used for voting or otherwise to cause, or attempt to cause, the substantial lessening of competition in any insurance market in the State;
(3)    a purchase of securities that results in a presumption of control under § 7-104 of this title, but the commissioner of the insurer’s state of domicile:
(i)    accepts a disclaimer of control or affirmatively finds that control does not exist; and
(ii)    informs the Commissioner of the disclaimer or finding;
(4)    an acquisition:
(i)    in which both the acquiring and acquired persons are not, either directly or through affiliates, primarily engaged in the insurance business; and
(ii)    for which a pre-acquisition notification:
1.    is filed with the Commissioner under § 7-403 of this subtitle; or
2.    is not required because the acquisition otherwise is excluded from this subtitle by another provision of this subsection;
(5)    an acquisition in which the acquiring and acquired persons already are affiliated;
(6)    considering “market” to be the direct written insurance premium in the State for a line of business as contained in the annual statement required to be filed by authorized insurers, an acquisition that would not result immediately in:
(i)    an increase in any market share;
(ii)    a combined market share of the acquiring and acquired insurers, their affiliates, and the person resulting from a merger that exceeds 5% of any one market; or
(iii)    in any one market:
1.    a market share increase of more than 2%; and
2.    a combined market share of the acquiring and acquired insurers, their affiliates, and the person resulting from a merger that exceeds 12%;
(7)    an acquisition for which a pre-acquisition notification would be required under this subtitle only because of the resulting effect on the ocean marine insurance line of business; or
(8)    an acquisition as to which the commissioner of the state of domicile of the acquired insurer affirmatively finds and informs the Commissioner that:
(i)    the acquired insurer is in failing condition;
(ii)    there is a lack of feasible alternatives to improving the failing condition of the acquired insurer; and
(iii)    the public benefits from improving the acquired insurer’s condition through the acquisition outweigh the public benefits from not lessening competition.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 4 - Acquisition of Control of Insurer › Section 7-403 - Pre-Acquisition Notification Requirements

(a)    (1)    The acquiring person in an acquisition subject to this subtitle must file a pre-acquisition notification with the Commissioner.
(2)    The acquired person in an acquisition subject to this subtitle may file a pre-acquisition notification.
(b)    The pre-acquisition notification must be filed at least 30 days before the acquisition subject to this subtitle is proposed to become effective.
(c)    (1)    The pre-acquisition notification must be in the form and contain the information required by the National Association of Insurance Commissioners relating to those markets that, under § 7-402(6) of this subtitle, cause the acquisition not to be exempt from this subtitle.
(2)    The Commissioner may require a pre-acquisition notification to contain:
(i)    additional material and information that the Commissioner considers necessary to determine whether the proposed acquisition, if effective, would violate § 7-405(a)(1)(i) of this subtitle; and
(ii)    the opinion of an economist about the competitive impact of the acquisition in the State, together with a summary of the education and experience of the economist indicating the economist’s ability to make an informed opinion.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 4 - Acquisition of Control of Insurer › Section 7-404 - Waiting Period

(a)    The waiting period for an acquisition subject to this subtitle:
(1)    begins on the day the Commissioner receives the pre-acquisition notification; and
(2)    ends on the earlier of:
(i)    30 days after the period begins; or
(ii)    the day on which the Commissioner ends the waiting period.
(b)    (1)    During the waiting period for an acquisition subject to this subtitle, the Commissioner may require that additional information relevant to the proposed acquisition be filed.
(2)    If the Commissioner requires additional information, the waiting period shall be extended to the earlier of:
(i)    30 days after the Commissioner receives the additional information; or
(ii)    the day on which the Commissioner ends the waiting period.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 4 - Acquisition of Control of Insurer › Section 7-406 - Penalty for Failure to File Pre-Acquisition Notification

A person required to file a pre-acquisition notification under this subtitle or Subtitle 3 of this title that fails to file the notification and that also fails to demonstrate a good faith effort to comply with the filing requirement is subject to a penalty not exceeding $50,000.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 5 - Acquisition of Health Service Plan › Section 7-501 - Acquisition of Control of Foreign Nonprofit Health Service Plan

(a)    This section does not apply to:
(1)    a transaction that is preempted by federal law; or
(2)    a transaction as to which:
(i)    the laws of the jurisdiction in which the nonprofit health service plan is domiciled authorize the commissioner of that jurisdiction to investigate and approve an acquisition of direct or indirect control of a nonprofit health service plan by conversion, merger, consolidation, exercise of a right to acquire, or otherwise; and
(ii)    the Commissioner:
1.    receives notice from the commissioner of the other jurisdiction about the acquisition; and
2.    has the right to request information and documents about that acquisition.
(b)    A person shall comply with the procedures required by Subtitles 3 and 4 of this title to the extent applicable before the person seeks control of a foreign nonprofit health service plan that is authorized to do business in the State under Title 4 of this article by:
(1)    making a tender for, inviting tenders of, entering into an agreement to exchange securities for, or acquiring in the open market or otherwise any voting security of the plan;
(2)    entering into any other agreement about voting securities under which the person directly or indirectly would control the plan by conversion or by exercise of a right to acquire voting securities of the plan; or
(3)    entering into an agreement to merge or consolidate with or otherwise to acquire control of the plan.
(c)    Approval by the Commissioner of an acquisition under this section is governed by § 7-306 of this title.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 5 - Acquisition of Health Service Plan › Section 7-502 - Security on Acquisition of Nonprofit Health Service Plan or Other Insurer

(a)    This section applies to a nonprofit health service plan or insurer that is being merged or consolidated with or acquired by another person.
(b)    Current financing money that, in accordance with regulations adopted by the Health Services Cost Review Commission, is provided by a nonprofit health service plan or insurer to a hospital for discounted hospital rates is deemed to be security for the outstanding charges that the nonprofit health service plan or insurer owes to the hospital for bills or claims for services that the hospital provided before the merger, consolidation, or acquisition.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 6 - Registration of Insurers in Insurance Holding Company Systems › Section 7-601 - Registration Required

(a)    (1)    Except as provided in subsection (b) of this section, each authorized insurer that is a member of an insurance holding company system shall register with the Commissioner in accordance with the requirements of this subtitle.
(2)    The Commissioner may allow or require any authorized insurer that is part of an insurance holding company system to register and file the information and material required under this subtitle for an affiliated insurer that is required to register under this subsection.
(b)    Subsection (a)(1) of this section does not apply to a foreign insurer that is organized in a jurisdiction that has adopted by statute or regulation disclosure requirements and standards substantially similar to those in this title.
(c)    This subtitle does not apply to an insurer or affiliate to the extent that the Commissioner determines that this subtitle is not intended to apply to the insurer or affiliate and exempts the insurer or affiliate from this subtitle by regulation or order.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 6 - Registration of Insurers in Insurance Holding Company Systems › Section 7-602 - Time for Registration

(a)    Except as provided in subsection (b) of this section, each insurer subject to registration under this subtitle shall register with the Commissioner within 15 days after the insurer becomes subject to registration and, for each subsequent year, annually on or before May 1.
(b)    If the Commissioner extends the time for registration for good cause, the insurer shall register on or before the date the Commissioner sets.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 6 - Registration of Insurers in Insurance Holding Company Systems › Section 7-605 - Examination About Registration and Risk Report

(a)    (1)    To verify the information required in the insurer’s registration statement and in the annual enterprise risk report, and any addition or amendment to the registration statement or the annual enterprise risk report, and in addition to the powers granted under §§ 2–205 through 2–209 of this article relating to the examination of insurers, the Commissioner may order an insurer subject to registration under this subtitle to produce:
(i)    those records, books, or papers in the possession of the insurer or its affiliates that are necessary to verify the registration statement; and
(ii)    additional information relevant to the registration statement.
(2)    The Commissioner shall examine the materials produced under this subsection at the time and place prescribed in §§ 2–205 through 2–209 of this article.
(b)    (1)    The Commissioner may conduct an examination under subsection (a) of this section only:
(i)    if the examination of the insurer under §§ 2–205 through 2–209 of this article is inadequate, or the interests of the policyholders of the insurer are being adversely affected; and
(ii)    within 3 years after the filing of the registration statement or the addition or amendment to the registration statement.
(2)    In a matter involving fraud, the 3–year limitation period of this subsection does not apply.
(c)    (1)    The Commissioner may retain, at the insurer’s expense, the services of accountants, attorneys, actuaries, and other experts not otherwise a part of the Commissioner’s staff as may be reasonably necessary to assist in the conduct of an examination under subsection (a) of this section.
(2)    The accountants, attorneys, actuaries, and other experts retained under this subsection are under the direction and control of the Commissioner and act only in an advisory capacity.
(d)    An insurer that produces materials for an examination under subsection (a) of this section is liable for and shall pay the expense of the examination in accordance with § 2–208 of this article.
(e)    With regard to an examination under subsection (a) of this section, the Commissioner has the authority provided under § 2–203 of this article.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 6 - Registration of Insurers in Insurance Holding Company Systems › Section 7-606 - Disclaimer of Affiliation

(a)    An insurer, a member of an insurance holding company system, or any other person may file with the Commissioner a disclaimer of affiliation with an authorized insurer that fully discloses:
(1)    all material relationships and bases for affiliation between the person filing the disclaimer and the authorized insurer; and
(2)    the basis for disclaiming the affiliation.
(b)    (1)    Within 30 days after receipt of a filing under subsection (a) of this section, the Commissioner shall give all parties in interest notice and an opportunity to be heard.
(2)    Within 30 days after the close of the notice period under paragraph (1) of this subsection, the Commissioner may disallow a disclaimer based on specific findings of fact.
(3)    If within 30 days after the close of the notice period the Commissioner has not disallowed the disclaimer, the disclaiming party is relieved of its duty to register or report under this subtitle, and the insurer is relieved of any duty to register or report under this subtitle that arises out of the insurer’s relationship with the person filing the disclaimer.
(4)    In the event of disallowance, the disclaiming party may request an administrative hearing, which shall be granted.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 6 - Registration of Insurers in Insurance Holding Company Systems › Section 7-607 - Failure to File Statement or Enterprise Risk Report; Penalties

(a)    Failure to file the registration statement, summary, or enterprise risk report required by this subtitle in the time specified in this subtitle is a violation of this title.
(b)    (1)    An insurer that does not file a registration statement or summary required under § 7–603(a) of this subtitle on or before May 1 or the date the Commissioner sets in accordance with § 7–602(b) of this subtitle, may be subject to a penalty of up to:
(i)    $500 for each day from May 1 through May 10;
(ii)    $1,000 for each day from May 11 through May 31; and
(iii)    $5,000 for each day after May 31.
(2)    In determining the amount of any financial penalty to be imposed under this section, the Commissioner shall consider the following factors:
(i)    the seriousness of the violation;
(ii)    the good faith of the violator;
(iii)    the violator’s history of previous violations;
(iv)    the deleterious effect of the violation on the public and the insurance industry; and
(v)    the assets of the violator.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 6 - Registration of Insurers in Insurance Holding Company Systems › Section 7-608 - Violation of Enterprise Risk Report Requirements

Whenever it appears to the Commissioner that a person has committed a violation of § 7–603(h) of this subtitle that prevents a full understanding of the enterprise risk to the insurer by affiliates or by the insurance holding company system, the violation may serve as an independent basis for disapproving dividends or distributions and placing the insurer under an order of supervision in accordance with § 7–804 of this title.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 7 - Transactions Within Insurance Holding Company Systems › Section 7-701 - Effect of Subtitle

(a)    This subtitle applies to insurers that are subject to registration under Subtitle 6 of this title.
(b)    This subtitle does not authorize an insurer that is a member of an insurance holding company system to enter into a transaction that otherwise would be contrary to law for an insurer that is not a member of the same insurance holding company system.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 7 - Transactions Within Insurance Holding Company Systems › Section 7-702 - Standards for Transactions

Each transaction within an insurance holding company system to which an insurer subject to registration under Subtitle 6 of this title is a party is subject to the following standards:
(1)    the terms shall be fair and reasonable in light of the purposes of this title;
(2)    the records of each party shall clearly and accurately disclose the precise nature and details of the transaction, including accounting information necessary to support the reasonableness of the charges or fees to the parties;
(3)    after the transaction, including any dividend or distribution to shareholder affiliates, the insurer has assets and surplus as regards policyholders that:
(i)    bear a reasonable relation to the insurer’s outstanding liabilities; and
(ii)    are adequate to meet the insurer’s financial needs;
(4)    charges or fees for services performed shall be reasonable;
(5)    expenses incurred and payments received shall be allocated to the insurer in conformity with customary insurance accounting practices consistently applied; and
(6)    agreements, including management agreements, service contracts, tax allocation agreements, or cost–sharing agreements, shall include the provisions that the Commissioner requires by regulation.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 7 - Transactions Within Insurance Holding Company Systems › Section 7-704 - Notice to Commissioner of Investment in One Corporation

A domestic insurer shall notify the Commissioner within 30 days after making any investment in one corporation if the total investment in the corporation by the domestic insurer’s insurance holding company system exceeds 10% of the corporation’s voting securities.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 7 - Transactions Within Insurance Holding Company Systems › Section 7-705 - Regulation of Dividends and Distributions -- in General

(a)    Except as provided in § 7-706 of this subtitle, before an insurer subject to registration under Subtitle 6 of this title pays a dividend or makes a distribution to its shareholders, the insurer shall notify the Commissioner of its intention to pay the dividend or make the distribution.
(b)    The insurer shall notify the Commissioner under subsection (a) of this section:
(1)    within 5 business days after the declaration; and
(2)    at least 10 days before the payment or distribution date.
(c)    The Commissioner shall keep the notice required by subsection (a) of this section confidential until the payment or distribution date.
(d)    If the Commissioner finds that, after the payment or distribution to shareholders under this section, the insurer’s surplus as regards policyholders would be inadequate or could lead the insurer to a hazardous financial condition, the Commissioner may order that the dividend not be paid.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 8 - Enforcement › Section 7-802 - Civil Penalty

(a)    In addition to any other penalty provided by law, a person that willfully violates this title or any regulation adopted under this title is subject to a penalty of up to $10,000 for the first day of violation and up to $1,000 for each additional day that the violation continues.
(b)    In determining the amount of any financial penalty to be imposed under this section, the Commissioner shall consider the following factors:
(1)    the seriousness of the violation;
(2)    the good faith of the violator;
(3)    the violator’s history of previous violations;
(4)    the deleterious effect of the violation on the public and the insurance industry; and
(5)    the assets of the violator.
(c)    Before imposing a penalty under this subsection, the Commissioner:
(1)    shall give the person that allegedly committed the violation notice and an opportunity for hearing; and
(2)    must find that the person willfully committed the violation.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 8 - Enforcement › Section 7-802.1 - Violations of Reporting and Submissions Requirements

(a)    A director or an officer of an insurance holding company system who knowingly participates in, assents to, or allows any of the officers or agents of an insurer to engage in transactions or investments that have not been properly reported or submitted under Subtitles 6 and 7 of this title, shall pay, in the director’s or officer’s individual capacity, a civil penalty in accordance with § 7–802 of this subtitle, after notice and an opportunity for hearing before the Commissioner.
(b)    In determining the amount of the civil penalty, the Commissioner shall take into account the factors in § 7–802(b) of this subtitle.
(c)    (1)    Whenever it appears to the Commissioner that an insurer subject to this title, or a director, an officer, an employee, or an agent of the insurer, has engaged in a transaction or entered into a contract that is subject to Subtitle 7 of this title and that would not have been approved if the approval had been requested, the Commissioner may order the insurer to cease and desist immediately any further activity under that transaction or contract.
(2)    After notice and an opportunity for hearing, the Commissioner also may order the insurer to void any contracts and restore the status quo if, in the Commissioner’s judgment, the action is in the best interest of the policyholders, the creditors, or the public.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 8 - Enforcement › Section 7-803 - Unfair Trade Practices

(a)    Any violation of this title is an unfair trade practice in the business of insurance and is subject to the provisions of Title 27 of this article.
(b)    In addition to any other penalty provided by law, with respect to a person that engages in an unfair trade practice, the Commissioner, after giving the person notice and an opportunity for a hearing, may take any or all of the following actions:
(1)    deny the person’s application for a license or certificate of authority, refuse to renew or revoke the person’s license or certificate of authority, or suspend the person’s license or certificate of authority for a period not exceeding 1 year;
(2)    proceed against the person in a court of competent jurisdiction in or outside the State to enjoin an act that would violate this title or to invalidate a transaction made in violation of this title; or
(3)    order compliance with this title, including the filing of evidence of compliance and periodic reports about that compliance, and enforce those orders by denying, refusing to renew, suspending, or revoking any license or certificate of authority or otherwise under the laws of the State.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 8 - Enforcement › Section 7-804 - Delinquency Proceedings

If the Commissioner finds that a violation of this title impairs the financial condition of a domestic insurer so as to threaten insolvency or make the further transaction of business hazardous to policyholders, creditors, shareholders, or the public, the Commissioner may institute proceedings in accordance with Title 9, Subtitle 2 of this article to take possession of the domestic insurer’s property and conduct its business.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 8 - Enforcement › Section 7-806 - Recovery of Payments and Distributions

(a)    (1)    Except as provided in paragraph (2) of this subsection, when an order for liquidation, conservation, or rehabilitation of a domestic insurer is entered, the receiver appointed under the order may recover for the domestic insurer the following distributions and payments made within 1 year before the petition for liquidation, conservation, or rehabilitation was filed:
(i)    from any parent corporation, holding company, affiliate, or person that otherwise controlled the domestic insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the domestic insurer on its capital stock; and
(ii)    any payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment made by the domestic insurer or its subsidiaries to a director, officer, or employee.
(2)    A distribution is not recoverable under this section if the parent or affiliate shows that when the distribution was paid:
(i)    the distribution was lawful and reasonable; and
(ii)    the domestic insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the domestic insurer to fulfill its contractual obligations.
(3)    The maximum amount recoverable under this section is the amount needed in excess of all other available assets of the impaired or insolvent domestic insurer to pay the contractual obligations of the impaired or insolvent domestic insurer and to reimburse any guaranty funds.
(b)    (1)    A person that was a parent corporation, holding company, or person that otherwise controlled the domestic insurer or affiliate when a distribution was paid is liable for an amount not exceeding the distribution received.
(2)    A person that otherwise controlled the domestic insurer when a distribution was declared is liable for an amount not exceeding the amount that the person would have received in an immediate distribution.
(3)    Two or more persons that are liable with respect to the same distribution are jointly and severally liable.
(4)    To the extent that a person liable to pay claims under this subsection is insolvent or otherwise fails to pay claims due, the liable person’s parent corporation or holding company and any other person that otherwise controlled the liable person when the distribution was paid are jointly and severally liable for any resulting deficiency in the amount recovered from the domestic insurer’s parent corporation or holding company or any other person that otherwise controlled the domestic insurer.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 8 - Enforcement › Section 7-807 - Criminal Penalties; False Statements, Reports, or Filings

(a)    (1)    Whenever it appears to the Commissioner that any insurer or any director, officer, employee, or agent of the insurer has committed a willful violation of this title or any regulation adopted or order issued under this title, the Commissioner may institute criminal proceedings in a court of competent jurisdiction against the insurer or the responsible director, officer, employee, or agent.
(2)    Any insurer that willfully violates this title or any regulation adopted or order issued under this title may be fined in accordance with subsection (b) of this section.
(b)    (1)    Any officer, director, employee, or agent of an insurance holding company system who willfully and knowingly subscribes to or makes or causes to be made any false statement, report, or filing with the intent to deceive the Commissioner in the performance of the Commissioner’s duties under this article is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $100,000 or imprisonment not exceeding 5 years or both.
(2)    Any fines imposed under this section shall be paid by the officer, director, employee, or agent in his or her individual capacity.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 1 - Broker Controlled Business › Section 8-101 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Control”, “controlling”, “controlled by”, or “under common control with” means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person, through ownership of voting securities or of securities convertible into voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, whether or not the power is exercised or sought to be exercised.
(c)    “Controlled insurer” means an insurer that is under the control of a controlling insurance producer.
(d)    “Controlling insurance producer” means an insurance producer that has control of a controlled insurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 1 - Broker Controlled Business › Section 8-103 - Effect of Subtitle

(a)    This subtitle does not affect the rights of policyholders, claimants, or creditors of a controlled insurer, or other third parties.
(b)    This subtitle does not affect the responsibility of any person to comply with applicable provisions of Title 7 of this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 1 - Broker Controlled Business › Section 8-104 - Presumption of Control

(a)    (1)    Control is presumed to exist if a person directly or indirectly owns, directs the voting of, holds with the power to vote, or holds proxies representing 10% or more of the voting securities of another person.
(2)    However, control is not presumed to exist if proxies have been obtained by an official of the person solely in connection with voting at a meeting of the owners of the person.
(b)    The presumption of control may be rebutted by showing by a preponderance of the evidence that control does not exist in fact.
(c)    (1)    Notwithstanding the presumption of control, the Commissioner, on application of an insurer, may find that a person presumed to control an insurer does not have control of the insurer.
(2)    In addition, the Commissioner, after notice and an opportunity to be heard, may find that a person not presumed to have control of an insurer does have control of the insurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 1 - Broker Controlled Business › Section 8-106 - Placement or Acceptance of Business by Reinsurance Intermediary

(a)    In this section, “reinsurance intermediary” means a person that acts as an insurance producer in:
(1)    soliciting, negotiating, or procuring a reinsurance contract or binder for a ceding insurer; or
(2)    accepting a reinsurance contract or binder for an assuming insurer.
(b)    This section does not apply to a reinsurance intermediary that makes a complete written disclosure to the parties of its relationship with the assuming or ceding insurer before completion of the transaction.
(c)    A reinsurance intermediary that has control of an assuming insurer may not directly or indirectly place insurance business with the assuming insurer in a transaction in which the reinsurance intermediary acts as an insurance producer for the ceding insurer.
(d)    A reinsurance intermediary that has control of a ceding insurer may not directly or indirectly accept business from the ceding insurer in a transaction in which the reinsurance intermediary acts as an insurance producer for the assuming insurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 1 - Broker Controlled Business › Section 8-107 - Controlled Insurers

(a)    (1)    With respect to insurance business placed by its controlling insurance producer, the controlled insurer may not engage in a pattern of charging premiums that are unjustifiably lower than those being charged by the controlled insurer or other insurers for similar risks written during the same period and placed by noncontrolling insurance producers.
(2)    When determining whether premiums are unjustifiably lower than those prevailing in the market, the Commissioner shall take into consideration applicable industry or actuarial standards at the time the insurance business was written.
(b)    With respect to insurance business placed by its controlling insurance producer, the controlled insurer shall establish underwriting procedures and may not deviate from them.
(c)    A controlled insurer’s capitalization at the time insurance business is placed by the controlling insurance producer and with respect to that insurance business shall comply with:
(1)    criteria set by the Commissioner; and
(2)    all applicable insurance laws.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 1 - Broker Controlled Business › Section 8-108 - Records of Controlling Insurance Producer

The controlling insurance producer shall keep records sufficient to:
(1)    demonstrate that the controlling insurance producer’s dealings with its controlled insurer were fair and comply with Title 7 of this article; and
(2)    disclose accurately the nature and details of the controlling insurance producer’s transactions with its controlled insurer, including any information that is necessary to support the charges or fees to the respective parties.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 1 - Broker Controlled Business › Section 8-109 - Violations of Subtitle

(a)    If the Commissioner has reason to believe that a controlling insurance producer has violated or is violating this subtitle, the Commissioner shall:
(1)    serve on the controlling insurance producer a statement of charges and notice of hearing; and
(2)    hold a hearing subject to §§ 2-210 through 2-214 of this article.
(b)    An order of the Commissioner is subject to judicial review under § 2-215 of this article.
(c)    The controlling insurance producer shall reimburse the Property and Casualty Insurance Guaranty Corporation for any payments made by the Property and Casualty Insurance Guaranty Corporation for losses, loss adjustment, and administrative expenses on the insurance business placed by the controlling insurance producer in excess of gross earned premiums and investment income earned on premiums and loss reserves for the insurance business if the Commissioner finds that:
(1)    the controlling insurance producer violated this subtitle; and
(2)    the violation substantially contributed to the insolvency of the controlled insurer.
(d)    This section does not affect the right of the Commissioner to impose any other penalty provided in this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-201 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Certificate of qualification” means a certificate of qualification issued by the Commissioner to act as a managing general agent.
(c)    (1)    “Managing general agent” means a person:
(i)    that:
1.    manages all or part of the insurance business of an insurer, including the management of a separate division, department, office, or subsidiary of the insurer; and
2.    with or without authority, separately or with affiliates, directly or indirectly produces or underwrites gross direct written premiums at least equal to 5% of the insurer’s policyholder surplus for any quarter or year, as reported in the insurer’s most recently filed quarterly report or annual statement; and
(ii)    that:
1.    negotiates or binds ceding reinsurance contracts for the insurer;
2.    adjusts or pays claims of more than $500; or
3.    maintains loss reserves from which claims may be paid.
(2)    “Managing general agent” does not include:
(i)    an employee of the insurer;
(ii)    a United States manager of the United States branch of an alien insurer;
(iii)    an attorney in fact authorized by and acting for the subscribers of a reciprocal insurer under a power of attorney;
(iv)    an authorized insurance producer acting for a surety insurer that engages exclusively in the business of issuing bail bonds; or
(v)    an underwriting manager that, by contract:
1.    manages all the insurance operations of the insurer;
2.    is under common control with the insurer and is subject to Title 7, Subtitle 6 of this article; and
3.    is not compensated based on the volume of premiums written.
(d)    “Underwrite” means to accept or reject risks for an insurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-202.1 - Applicant Qualifications

An applicant for a certificate of qualification must be:
(1)    licensed as an insurance producer under Title 10, Subtitle 1 of this article; and
(2)    competent and trustworthy, as determined by the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-203 - Applications for Certificate of Qualification

An applicant for a certificate of qualification shall:
(1)    file with the Commissioner an application on the form that the Commissioner provides; and
(2)    pay to the Commissioner the fee required by § 2-112 of this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-205 - Term and Renewal of Certificate of Qualification

(a)    A certificate of qualification expires on the first June 30 after its effective date unless it is renewed as provided in this section.
(b)    Before a certificate of qualification expires, the holder of the certificate of qualification may renew it for an additional 1-year term, if the holder:
(1)    otherwise is entitled to a certificate of qualification; and
(2)    pays to the Commissioner the renewal fee required by § 2-112 of this article.
(c)    The Commissioner shall renew the certificate of qualification of each holder who meets the requirements of this section.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-207 - Bond or Errors and Omissions Policy; Examination

(a)    By regulation, the Commissioner may require a managing general agent to maintain a bond or other security in an amount set by the Commissioner to protect the insurer and policyholders or to maintain an errors and omissions policy issued by an authorized insurer, or both.
(b)    A managing general agent is subject to examination under §§ 2-205 through 2-209 of this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-209 - Prohibited Activities of Managing General Agent

(a)    A managing general agent may not:
(1)    commit the insurer to participate in insurance or reinsurance syndicates;
(2)    appoint or hire an insurance producer to solicit, procure, or negotiate insurance contracts for the insurer without ensuring that the insurance producer is licensed under Title 10, Subtitle 1 of this article;
(3)    take an action that would violate § 27-503 of this article if taken directly by the insurer;
(4)    without the insurer’s written approval, pay or commit the insurer to pay a claim, net of reinsurance, that exceeds 1% of the insurer’s policyholder surplus as of December 31 of the immediately preceding calendar year;
(5)    without the insurer’s prior written approval, collect any payment from a reinsurer;
(6)    commit the insurer to a claim settlement with a reinsurer;
(7)    employ an individual who also is employed by the insurer;
(8)    allow an agent or employee of the managing general agent to serve on the insurer’s board of directors; or
(9)    appoint a submanaging general agent unless:
(i)    approval of the appointment is obtained from the Commissioner and from the insurer for whom the managing general agent acts; and
(ii)    the submanaging general agent complies with any requirements imposed by the Commissioner under § 8-213 of this subtitle.
(b)    (1)    Except as provided in paragraph (2) of this subsection, a managing general agent may not bind reinsurance or retrocessions for an insurer.
(2)    A managing general agent may bind facultative reinsurance contracts under obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines for reinsurance both assumed and ceded, including:
(i)    a list of reinsurers with which the automatic agreements are in effect;
(ii)    the coverages and amounts or percentages that may be reinsured; and
(iii)    commission schedules.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-210 - Duties of Insurer as to Managing General Agents

(a)    (1)    An insurer shall maintain independent financial examinations, in a form acceptable to the Commissioner, of each managing general agent with whom the insurer has done business.
(2)    The insurer shall keep records for at least 5 years.
(b)    (1)    If, by contract, an insurer allows a managing general agent to maintain loss reserves, the insurer annually shall get an opinion, attesting to the adequacy of the loss reserves established, from an independent actuary who is a member in good standing of the American Academy of Actuaries.
(2)    The insurer shall keep the report of the actuary for at least 5 years.
(c)    At least twice a year, an insurer shall conduct a review of the underwriting and claims processing operations of its managing general agent.
(d)    (1)    Within 30 days after entering into or terminating a contract with a managing general agent, an insurer shall notify the Commissioner in writing of doing so.
(2)    The notice of entering into a contract shall include:
(i)    a statement of the duties and responsibilities of the managing general agent;
(ii)    the lines of insurance that the managing general agent is contractually authorized to negotiate, procure, or bind for the insurer;
(iii)    a copy of the contract; and
(iv)    any other information or documentation that the Commissioner requests.
(e)    Unless the relationship between an insurer and managing general agent is controlled by and disclosed under Title 7, Subtitle 6 or 7 of this article, the insurer may not have on its board of directors an officer, director, employee, agent, or shareholder of its managing general agent.
(f)    (1)    Each insurer shall review its books and records each quarter to determine if any insurance producer has become a managing general agent.
(2)    If the insurer determines that an insurance producer has become a managing general agent:
(i)    the insurer promptly shall notify the insurance producer and the Commissioner of the determination; and
(ii)    the insurer and insurance producer must comply fully with the provisions of this subtitle within 30 days after the determination.
(g)    The Commissioner may adopt regulations to carry out this section.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-211 - Acts of Managing General Agent Deemed Acts of Insurer; Insolvency of Managing General Agent

(a)    The acts of a managing general agent are deemed to be the acts of the insurer for whom the managing general agent is acting.
(b)    If a managing general agent becomes insolvent, the obligations of the managing general agent with respect to policyholders of an insurer shall be assumed by that insurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 2 - Managing General Agents › Section 8-212 - Confidentiality of Contracts

(a)    Unless the insurer to which a contract relates gives written consent, the contract between a managing general agent and an insurer obtained by the Commissioner during an examination or investigation under this subtitle, or reported or filed under this subtitle:
(1)    shall be treated confidentially;
(2)    is not subject to subpoena; and
(3)    may not be made public by the Commissioner, the National Association of Insurance Commissioners, or any other person.
(b)    The Commissioner may publish all or part of a contract between a managing general agent and an insurer in the manner that the Commissioner considers appropriate if, after giving the managing general agent and insurer notice and an opportunity to be heard, the Commissioner finds that the interest of the policyholders or the public will be served by publication of the contract.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-303 - Registration Required

(a)    A person must register with the Commissioner before the person acts as or represents itself as an administrator in the State.
(b)    A person that would be an administrator subject to this subtitle but for the exemption under § 8-301(b)(2)(iv) of this subtitle shall provide to the Commissioner:
(1)    written notice that the person operates in the State; and
(2)    evidence satisfactory to the Commissioner that the person is complying with any applicable bonding requirements imposed by ERISA.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-304 - Qualifications of Applicants

(a)    To register as an administrator, an applicant must present evidence satisfactory to the Commissioner that the applicant:
(1)    has not been convicted of:
(i)    a felony;
(ii)    a misdemeanor involving moral turpitude;
(iii)    a violation of this subtitle;
(iv)    an attempt or conspiracy to commit any of the violations listed in items (i) through (iii) of this item; or
(v)    a crime in which any other violation listed in this item is an element;
(2)    has obtained the bond required by § 8–306 of this subtitle or has qualified for one of the applicable exemptions from the bonding requirement;
(3)    has met any applicable examination requirements adopted by the Commissioner under subsection (b) of this section; and
(4)    for the administration of health benefit plans in the State, uses only the uniform claim forms adopted by the Commissioner under § 15–1003 of this article.
(b)    (1)    The Commissioner may develop appropriate testing procedures to measure an applicant’s familiarity with this subtitle.
(2)    To develop testing procedures, the Commissioner shall consult with representatives of administrators, employee organizations, and employers.