reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 10 - Limitation of Risk › Section 5-1004 - Limitation of Risk -- Surety Insurers

(a)    A surety insurer may execute transportation or warehousing bonds for federal internal revenue taxes in a net amount not exceeding 20% of the surety insurer’s surplus to policyholders, determined under § 5-1003(a)(2) of this subtitle.
(b)    The net amount of exposure on any one surety risk shall be deemed within the 10% limit established by § 5-1003(a)(1) of this subtitle if the surety insurer is protected in excess of that amount:
(1)    by authorized reinsurance;
(2)    by the cosuretyship of another surety insurer authorized to engage in the surety insurance business in the State;
(3)    by a deposit of property with the surety insurer in pledge or a conveyance of property to the surety insurer in trust for the protection of the surety insurer;
(4)    by a conveyance or mortgage of property for the protection of the surety insurer; or
(5)    if a suretyship or guaranty obligation was made on behalf of or on account of a fiduciary holding property in a trust capacity, by a deposit or other disposition of a part of the property held in trust that prohibits the sale, mortgage, or other disposition of the property without the consent of the surety insurer or a court order or decree.
(c)    In determining the net amount of exposure on any one surety risk:
(1)    when the amount of a suretyship obligation exceeds the actual amount of the judgment that is being appealed and that is secured by a bond, or exceeds the amount of the subject matter in controversy, or exceeds the amount of the estate held by the fiduciary for the performance of whose duties a bond is conditioned, the actual amount of the judgment, the subject matter in controversy, or the estate not subject to the supervision or control of the surety insurer shall be used as the basis for determining whether the risk exceeds the 10% limit established by § 5-1003(a)(1) of this subtitle; and
(2)    when the amount of a suretyship obligation required for the performance of a contract exceeds the contract price, the contract price shall be used as the basis for determining whether the risk exceeds the 10% limit established by § 5-1003(a)(1) of this subtitle.
(d)    In addition to any other limitation contained in this article, a surety insurer may not be exposed at any one time to risks on suretyship obligations that guaranty the deposits of a single financial institution in an aggregate net amount exceeding 10% of the surety insurer’s surplus to policyholders, determined under § 5-1003(a)(2) of this subtitle, unless the surety insurer is protected in excess of that amount as provided in subsection (b) of this section.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 10 - Limitation of Risk › Section 5-1005 - Limitation of Risk -- Financial Guaranty Insurance

The Commissioner may establish by regulation limits on the risk retained by an insurer for a subject of financial guaranty insurance, including requirements for contingency reserves used in determining compliance with the applicable risk limits.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-101 - Scope of Subtitle

(a)    The following persons are subject to taxation under this subtitle:
(1)    a person engaged as principal in the business of writing insurance contracts, surety contracts, guaranty contracts, or annuity contracts;
(2)    a managed care organization authorized by Title 15, Subtitle 1 of the Health – General Article;
(3)    a for–profit health maintenance organization authorized by Title 19, Subtitle 7 of the Health – General Article;
(4)    an attorney in fact for a reciprocal insurer; and
(5)    a credit indemnity company.
(b)    The following persons are not subject to taxation under this subtitle:
(1)    a nonprofit health service plan corporation that meets the requirements established under §§ 14–106 and 14–107 of this article;
(2)    a fraternal benefit society;
(3)    a surplus lines broker, who is subject to taxation in accordance with Title 3, Subtitle 3 of this article;
(4)    an unauthorized insurer, who is subject to taxation in accordance with Title 4, Subtitle 2 of this article;
(5)    a nonprofit health maintenance organization authorized by Title 19, Subtitle 7 of the Health – General Article that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code; and
(6)    the Maryland Automobile Insurance Fund.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-102.1 - Recoupment of Aggregate Amount of Health Insurance Provider Fees. [Effective Until Contingency Met]

(a)    (1)    This section applies to:
(i)    except as provided in paragraph (2) of this subsection, an insurer, a nonprofit health service plan, a health maintenance organization, a dental plan organization, a fraternal benefit organization, and any other person subject to regulation by the State that provides a product that:
1.    was subject to the fee under § 9010 of the Affordable Care Act, as in effect on December 1, 2019; and
2.    may be subject to an assessment by the State; and
(ii)    a managed care organization authorized under Title 15, Subtitle 1 of the Health – General Article.
(2)    This section does not apply to a stand–alone dental plan carrier or a stand–alone vision plan carrier.
(b)    The purpose of this section is to recoup the aggregate amount of the health insurance provider fee that otherwise would have been assessed under § 9010 of the Affordable Care Act that is attributable to State health risk for calendar year 2019 as a bridge to stability in the individual health insurance market.
(c)    (1)    In calendar year 2019, in addition to the amounts otherwise due under this subtitle, an entity subject to this section shall be subject to an assessment of 2.75% on all amounts used to calculate the entity’s premium tax liability under § 6–102 of this subtitle or the amount of the entity’s premium tax exemption value for calendar year 2018.
(2)    Notwithstanding § 2–114 of this article, the assessment required under this section shall be distributed by the Commissioner to the Maryland Health Benefit Exchange Fund established under § 31–107 of this article.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-103 - Tax Rate

The tax rate is:
(1)    0% for premiums for annuities; and
(2)    2% for all other premiums, including:
(i)    gross receipts received as a result of capitation payments made to a managed care organization, supplemental payments, and bonus payments; and
(ii)    subscription charges or other amounts paid to a for-profit health maintenance organization.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-103.1 - Annual Distribution to Advance Directive Program Fund

Notwithstanding § 2–114 of this article, beginning July 1, 2017, from the tax imposed on the health insurers under this subtitle, $500,000 shall be distributed annually to the Advance Directive Program Fund created under § 5–626 of the Health – General Article.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-103.2 - Annual Distribution to Maryland Health Benefit Exchange Fund

(a)    (1)    (i)    Notwithstanding § 2–114 of this article, beginning January 1, 2015, from the tax described in paragraph (2) of this subsection, a portion shall be distributed annually to the Maryland Health Benefit Exchange Fund established under § 31–107 of this article for the sole purpose of funding the operation and administration of the Maryland Health Benefit Exchange.
(ii)    The operation and administration of the Maryland Health Benefit Exchange may include functions delegated by the Maryland Health Benefit Exchange to a third party under law or by contract.
(2)    (i)    The distribution under paragraph (1) of this subsection shall be allocated from the tax imposed on a person under § 6–102 of this subtitle on premiums for health insurance.
(ii)    For purposes of this paragraph, “person” does not include:
1.    a managed care organization authorized by Title 15, Subtitle 1 of the Health – General Article; or
2.    a for–profit health maintenance organization authorized by Title 19, Subtitle 7 of the Health – General Article.
(b)    For State fiscal year 2015 and each State fiscal year thereafter, the amount to be distributed under subsection (a) of this section shall be sufficient to fully fund the operation and administration of the Maryland Health Benefit Exchange for the State fiscal year.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-104 - Computation of Tax

(a)    Subject to subsection (b) of this section, in computing the tax under this section, the following deductions from gross direct premiums allocable to the State are allowed:
(1)    returned premiums, not including surrender values;
(2)    dividends that are:
(i)    paid or credited to policyholders; or
(ii)    applied to buy additional insurance or to shorten the period during which premiums are payable; and
(3)    returns or refunds made or credited to policyholders because of retrospective ratings or safe driver rewards.
(b)    Deductions from gross direct premiums are allowed only to the extent that the deductions are properly allocable to premiums subject to tax.
(c)    (1)    Subject to paragraph (2) of this subsection, any insurer that has its home office in this State shall be entitled to a credit against the total amount of the taxes payable by the insurer under this subtitle equal to the amount of all retaliatory taxes imposed on the insurer in other states as a result of its payment of the assessment fee required under Title 2, Subtitle 5 of this article.
(2)    The aggregate total amount that may be credited to all qualifying insurers under this section may not exceed $1 million in any fiscal year.
(3)    If the credit available to insurers under paragraph (2) of this subsection is insufficient to offset the retaliatory taxes attributable to the imposition of the assessment fee under Title 2, Subtitle 5 of this article, the available credit shall be apportioned among those insurers claiming the credit based on the ratio of gross direct written premium allocable to this State of the insurer claiming the credit to the total amount of gross direct written premium allocable to this State written by all insurers claiming the credit.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-105.3 - Exemption of Stand-Alone Dental and Vision Plans From Health Care Regulatory Assessment

A stand–alone dental plan carrier or a stand–alone vision plan carrier that is subject to the health insurance provider fee assessment imposed under § 6–102.1 of this subtitle in calendar year 2024 and each calendar year thereafter is exempt from the health care regulatory assessment under § 2–112.2 of this article and the annual assessment fee under § 2–502 of this article for each year in which the health insurance provider fee is paid.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-106 - Declaration of Estimated Tax

(a)    Each person subject to taxation under this subtitle shall make a declaration of its estimated tax if the person’s total tax for the current taxable year reasonably is expected to exceed $1,000.
(b)    A person required to make a declaration of estimated tax shall:
(1)    file with the Commissioner:
(i)    an initial declaration of estimated tax on or before April 15 of the taxable year; and
(ii)    a quarterly estimated tax report on or before June 15, September 15, and December 15 after filing the initial declaration; and
(2)    pay to the Commissioner at least 25% of the tax estimated for the full taxable year with the initial declaration for that year and with each quarterly report for that year.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-107 - Report of Gross Direct Premiums

(a)    On or before March 15 of each year, each person subject to taxation under this subtitle shall:
(1)    file with the Commissioner:
(i)    a report of the new and renewal gross direct premiums less returned premiums written by the person during the preceding calendar year;
(ii)    a report of the gross receipts received as a result of capitation payments, supplemental payments, and bonus payments made to a managed care organization during the preceding calendar year; and
(iii)    if the person issues perpetual policies of fire insurance, a report of the average amount of deposits held by the person during the preceding calendar year in connection with perpetual policies of fire insurance issued on property in the State and in force during any part of that year; and
(2)    pay to the Commissioner the total amount of taxes imposed by this subtitle, as shown on the face of the report, after crediting the amount of taxes paid with the declaration of estimated tax and each quarterly report filed under § 6-106 of this subtitle.
(b)    The reports shall be verified in the manner and contain the information that the Commissioner requires by regulation.
(c)    A person that is not otherwise required to file a report with the Commissioner under this section shall file a report and pay the tax due if the person:
(1)    claimed a credit for a previous year against the tax imposed under this subtitle for a certified rehabilitation as provided under § 5A-303 of the State Finance and Procurement Article; and
(2)    is subject to the recapture of the credit as provided under § 5A-303 of the State Finance and Procurement Article.
(d)    From the insurance premium tax revenue, the Administration shall distribute each quarter the amount necessary to administer the insurance premium tax laws in the previous quarter to an administrative account.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-108 - Penalty and Interest

(a)    A tax not paid when a report or declaration is due to be filed is subject to a penalty of 5% and interest at the rate determined under § 13-604(b) of the Tax - General Article from the date that the report or declaration was due.
(b)    If an additional amount is found to be due after a report or declaration has been filed, the additional amount is subject to interest at 6% per year from the due date of the report or declaration until payment is made to the Commissioner.
(c)    (1)    Subject to paragraph (2) of this subsection, if an insurer that is required under § 2-113 of this article to pay a premium tax on or before the due date in immediately available funds fails to do so, the Commissioner shall assess a penalty and interest as provided in subsection (a) of this section on the unpaid tax from the date the tax is due to the date on which the funds from the tax payment become available to the State.
(2)    The Commissioner may waive the penalty and interest on late payments under this subsection if the insurer proves that it:
(i)    made a good faith effort to comply with the requirements of § 2-113 of this article; and
(ii)    exercised due diligence to initiate payment correctly and on a timely basis.
(3)    This subsection does not affect any other requirement of law for the payment of premium taxes or licensing fees by an insurer.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-109 - Audit of Report; Assessment; Failure to File Report

(a)    The Commissioner shall examine and audit each report as soon as practicable after receipt.
(b)    (1)    If the amount of tax computed by the Commissioner is greater than the amount shown on the report, the Commissioner shall:
(i)    assess the excess amount; and
(ii)    mail, or send by electronic means in accordance with § 2–116 of this article, notice of the assessment to the person that filed the report.
(2)    The Commissioner shall make an assessment within 3 years after the date on which the report was due.
(3)    The Commissioner may make an assessment at any time if the person failed to file a report or filed a fraudulent report.
(c)    (1)    If a person required to file a report under this subtitle fails to do so on or before the date the report is due, the Commissioner may:
(i)    estimate the tax due by the insurer; and
(ii)    assess a tax at no more than twice the estimated amount.
(2)    The Commissioner shall mail, or send by electronic means in accordance with § 2–116 of this article, notice of the assessment to the person at:
(i)    its mailing or e–mail address, if it has a mailing or e–mail address on file with the Commissioner; or
(ii)    any other address of the person that appears on the records of the Commissioner, if there is no mailing or e–mail address on file with the Commissioner.
(3)    If the person does not file the report within 15 days after the notice of assessment is mailed or sent electronically:
(i)    the assessment is final; and
(ii)    the amount of tax due on the assessment, including penalties and interest, shall be collected as other taxes are collected.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-110 - Appeal to Tax Court

(a)    A person may appeal to the Maryland Tax Court in accordance with § 13-510 of the Tax - General Article if the person is dissatisfied with:
(1)    an assessment under § 6-109 of this subtitle; or
(2)    a disallowance by the Commissioner of all or part of a claim for refund.
(b)    An appeal under this section must be taken within 60 days after the earlier of delivery or mailing of a notice of:
(1)    an assessment under § 6-109 of this subtitle; or
(2)    disallowance of a claim for refund under § 13-904 of the Tax - General Article.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-111 - Dissolution or Retirement

(a)    If the person subject to taxation under this subtitle dissolves or voluntarily or involuntarily retires from the State, the dissolution or retirement does not defeat the filing of reports and the assessment and collection of taxes imposed by this subtitle with respect to premiums written or deposits held during that part of the calendar year before the dissolution or retirement.
(b)    (1)    The person shall file the report required by this subtitle within 30 days after dissolution or retirement.
(2)    However, if the person is taken over for liquidation or rehabilitation, the person shall file the report within 6 months after the person is taken over.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-112 - Local Tax Prohibited

(a)    Except for a property tax, a county or municipal corporation of the State may not impose a tax on a person subject to taxation under this subtitle.
(b)    This section does not exempt shares of stock of a domestic corporation from the property tax and assessment merely because the shares are owned by a person subject to taxation under this subtitle.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-113 - Compliance With Filing Requirement

A declaration or report that must be filed under this subtitle complies with the filing requirement if the declaration or report is:
(1)    mailed and postmarked by the United States Postal Service on or before the filing date;
(2)    delivered on or before the filing date to a private delivery service recognized by the Commissioner, if the delivery is evidenced by a receipt; or
(3)    sent by electronic means in accordance with § 2–116 of this article.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 1 - Taxes › Section 6-115 - Credit for Wages, Child Care, and Transportation for Employees With Disability

An insurer may claim a credit against the premium tax payable under this subtitle for:
(1)    wages paid to a qualified employee with a disability; and
(2)    (i)    child care provided or paid for by the insurer for the children of a qualified employee with a disability as provided under § 21–309 of the Education Article; or
(ii)    transportation provided or paid for by the insurer for a qualified employee with a disability as provided under § 21–309 of the Education Article.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 2 - Fraud Prevention Fee › Section 6-203 - Amount of Fee

(a)    For each insurer, health maintenance organization, nonprofit health service plan, fraternal benefit society, or any entity operating in the State under the regulatory jurisdiction of the Commissioner other than a premium finance company, a fraternal benefit society that collected less than $75,000 in premiums in the preceding calendar year, or a motor club, the fraud prevention fee shall be:
(1)    $1,000;
(2)    due on or before June 30 of each year; and
(3)    if applicable, payable with the certificate of authority or license renewal fee.
(b)    For each insurance producer, public adjuster, insurance adviser, or third party administrator qualified, licensed, or registered by the Commissioner, the fraud prevention fee shall be:
(1)    $15;
(2)    due on or before June 30 of every other year; and
(3)    if applicable, payable with the certificate of qualification, license, or registration renewal fee.
(c)    Any person that has more than one of the certificates of qualification, licenses, or registrations listed in subsection (b) of this section shall pay the $15 fraud prevention fee only once per renewal period.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 3 - Retaliation › Section 6-301 - Scope of Subtitle

(a)    This subtitle does not apply to:
(1)    personal income taxes;
(2)    ad valorem taxes on real or personal property;
(3)    special purpose obligations or assessments imposed by another state in connection with particular kinds of insurance other than property insurance; or
(4)    assessments imposed by insurance guaranty associations or similar organizations in another state.
(b)    Notwithstanding subsection (a) of this section, in determining the propriety and extent of retaliatory action under this subtitle, the Commissioner shall take into consideration deductions from premium taxes or other taxes otherwise payable, allowed for real or personal property taxes paid.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 3 - Retaliation › Section 6-302 - Domicile of Alien Insurer

For purposes of this subtitle, the domicile of an alien insurer is:
(1)    for an alien insurer formed under the laws of Canada or a province of Canada, the province in which its head office is located; and
(2)    for any other alien insurer, the state in which its principal place of business in the United States is located.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 3 - Retaliation › Section 6-303 - Retaliation

(a)    When by or pursuant to the laws of any other state or foreign country any taxes, licenses and other fees other than fees similar to the assessment fee established under Title 2, Subtitle 5 of this article, in the aggregate, and any fines, penalties, deposit requirements or other material obligations, prohibitions or restrictions are or would be imposed upon Maryland insurers, or upon the insurance producers or representatives of such insurers, which are in excess of such taxes, licenses and other fees, in the aggregate, or which are in excess of the fines, penalties, deposit requirements or other obligations, prohibitions, or restrictions directly imposed upon similar insurers, or upon the insurance producers or representatives of such insurers, of such other state or country under the statutes of this State, so long as such laws of such other state or country continue in force or are so applied, the same taxes, licenses and other fees, in the aggregate, or fines, penalties or deposit requirements or other material obligations, prohibitions, or restrictions of whatever kind shall be imposed by the Commissioner upon the insurers, or upon the insurance producers or representatives of such insurers, of such other state or country doing business or seeking to do business in Maryland.
(b)    For the purposes of this subtitle, any tax, license or other fee or other obligation imposed by a political subdivision or agency of another state or country upon Maryland insurers or their insurance producers or representatives shall be deemed to be imposed by that state or country.
2023 Maryland Statutes › Insurance › Title 6 - Taxes and Fees › Subtitle 3 - Retaliation › Section 6-304 - Penalty and Interest

All taxes imposed by this subtitle that are not paid within 30 days after the Commissioner issues the notice of the amount due are subject to a penalty of 5% and interest at the rate determined under § 13-604 of the Tax - General Article for each month after the date of the notice that the tax was due.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 1 - Definitions; General Provisions › Section 7-101 - Definitions

(a)    In this title the following words have the meanings indicated.
(b)    “Affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person.
(c)    “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 unless the power is the result of an official position with or corporate office held by the person.
(d)    (1)    “Enterprise risk” means any activity, circumstance, event, or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect on the financial condition or liquidity of the insurer or its insurance holding company system as a whole.
(2)    “Enterprise risk” includes anything that would:
(i)    cause the insurer’s risk based capital to fall to or below a company action level under Title 4, Subtitle 3 of this article; or
(ii)    cause the insurer to be in a hazardous financial condition under § 9–102 of this article.
(e)    “Insurance holding company” means a person that directly or indirectly controls an insurer or controls a person that controls an insurer.
(f)    “Insurance holding company system” means two or more affiliates, at least one of which is an insurer.
(g)    “Subsidiary” means an affiliate of a person that, directly or indirectly, through one or more intermediaries, is controlled by that person.
(h)    “Ultimate controlling person” means the person within a holding company system that is not controlled by any other person.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 1 - Definitions; General Provisions › Section 7-102 - Legislative Findings; Statement of Policy

(a)    The General Assembly finds that the public interest and the interest of policyholders and stockholders may be adversely affected when:
(1)    control of an insurer is sought by a person that would use that control adversely to the best interest of policyholders or stockholders;
(2)    acquisition of control of an insurer would substantially lessen competition or create a monopoly in the insurance business in the State;
(3)    an insurer that is part of an insurance holding company system enters into transactions or relationships with affiliates on terms that are not fair and reasonable; or
(4)    an insurer pays to stockholders dividends that jeopardize the financial condition of the insurer.
(b)    The purposes of this title include promoting the public interest by:
(1)    requiring disclosures in acquisitions or mergers;
(2)    requiring disclosures of material transactions, relationships between an insurer and its affiliates, and dividends to stockholders paid by insurers;
(3)    requiring disclosures of relevant information about changes in control of insurers;
(4)    providing standards governing material transactions between an insurer and its affiliates; and
(5)    establishing penalties for failure to disclose and providing for the disapproval of certain transactions.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 1 - Definitions; General Provisions › Section 7-103 - Scope of Title

(a)    Except as otherwise specifically provided, the provisions of this title are intended to apply to authorized insurers.
(b)    The provisions of this title that apply to an authorized insurer or a domestic insurer also apply to:
(1)    a nonprofit health service plan licensed under Title 14, Subtitle 1 of this article; and
(2)    a mutual insurance holding company formed under § 3-121.1 of this article.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 1 - Definitions; General Provisions › Section 7-104 - 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 or person does not have control of the insurer or person.
(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 or person does have control of the insurer or person.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 1 - Definitions; General Provisions › Section 7-105 - Standards for Reasonableness of Assets and Surplus as Regards Policyholders

(a)    For purposes of this title, in determining whether an insurer’s assets and surplus as regards policyholders are reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
(1)    the size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria;
(2)    the extent to which the insurer’s business is diversified among the several lines of insurance;
(3)    the number and size of risks insured in each line of insurance;
(4)    the geographical dispersion of the insurer’s insured risks;
(5)    the nature and extent of reinsurance of the insurer’s risks;
(6)    the quality, diversification, and liquidity of the insurer’s investment portfolio;
(7)    the recent past and projected future trends in the size of the insurer’s surplus as regards policyholders;
(8)    the surplus as regards policyholders maintained by comparable insurers;
(9)    the quality and liquidity of investments in and other transactions with affiliates;
(10)    the adequacy of the reserves of the insurer;
(11)    the quality of the earnings of the insurer and the extent to which the reported earnings include extraordinary items; and
(12)    the recent past and projected future trends in the size and quality of the insurer’s investment portfolio.
(b)    The Commissioner may discount an investment or treat an investment under subsection (a)(9) of this section as a nonadmitted asset for purposes of determining the adequacy of surplus as regards policyholders whenever the investment so warrants.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 1 - Definitions; General Provisions › Section 7-106 - Confidentiality

(a)    Except as provided in subsections (b) and (c) of this section or otherwise by law, all information and documents that are filed with the Commissioner in compliance with the requirements of this title or that are reported to, obtained by, or otherwise disclosed to the Commissioner or any other person in the course of an examination or investigation made under this title:
(1)    are confidential material;
(2)    are not subject to subpoena;
(3)    may not be made public by the Commissioner, the National Association of Insurance Commissioners, or any other person; and
(4)    are not subject to discovery or admissible in evidence in any civil action.
(b)    Material that otherwise is confidential under subsection (a) of this section may be made public by any person who has received the prior written consent of the person to whom the material relates.
(c)    If, after giving the person to whom the material relates notice and an opportunity to be heard, the Commissioner determines that it is in the interest of the policyholders, stockholders, or the public to make public any material relating to the person that otherwise is confidential under subsection (a) of this section, the Commissioner may make public all or part of the material in an appropriate manner.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 1 - Definitions; General Provisions › Section 7-107 - Right to Hearing and Appeal

An insurer aggrieved by an order of the Commissioner under this title has the right to a hearing and the right to appeal from the action of the Commissioner under §§ 2-210 through 2-215 of this article.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 2 - Acquisitions and Investments -- in General › Section 7-201 - Authority to Acquire Subsidiary

(a)    In addition to any other investment allowed elsewhere in this article, a domestic insurer, either alone or with another person, may invest in or otherwise acquire a subsidiary that engages in or is registered to engage in one or more of the following insurance businesses or business activities that are ancillary to an insurance business:
(1)    conducting an insurance business that is authorized by the jurisdiction where the subsidiary is incorporated;
(2)    acting as an insurance producer for its parent, its parent’s insurer subsidiaries, or its parent’s intermediate insurer subsidiaries;
(3)    investing, reinvesting, or trading in securities for itself, its affiliate, its parent, or another subsidiary of its parent;
(4)    managing an investment company that is subject to the Investment Company Act of 1940, including managing related sales and services of the investment company;
(5)    acting as a broker–dealer that is subject to the Securities Exchange Act of 1934;
(6)    providing investment advice to governments, governmental units, corporations, or other organizations or groups;
(7)    performing other services related to the operations of an insurance business, including actuarial, loss prevention, safety engineering, data processing, accounting, claims, appraisal, and collection services;
(8)    owning and managing assets that its parent may own and manage;
(9)    acting as administrative agent for a governmental unit that performs an insurance function;
(10)    financing insurance premiums;
(11)    conducting any other business activity that is reasonably ancillary to an insurance business; or
(12)    owning one or more corporations engaged exclusively in or organized to engage exclusively in one or more of the business activities specified in this section.
(b)    Subject to the approval of the Commissioner and to the provisions of this title, a domestic mutual insurer may acquire or form a subsidiary insurance holding company.
2023 Maryland Statutes › Insurance › Title 7 - Maryland Insurance Acquisitions Disclosure and Control Act › Subtitle 2 - Acquisitions and Investments -- in General › Section 7-203 - Disposal of Investments When Control Ends

(a)    (1)    Except as provided in subsection (b) of this section, within 3 years after a domestic insurer ends its control of a subsidiary, the domestic insurer shall dispose of all investments in the subsidiary that were made under § 7-202 of this subtitle.
(2)    The Commissioner may extend the time for disposal of the investments.
(b)    A domestic insurer is not required to dispose of an investment under subsection (a) of this section if, after the investment is made:
(1)    the investment meets the requirements for investment under another provision of this article; and
(2)    the domestic insurer notifies the Commissioner that the investment meets the other requirements.
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 7-301 - Scope of Subtitle

(a)    Except as otherwise provided in this section, this subtitle applies to any purchase, exchange, merger, or other transaction that would result in the acquisition of direct or indirect control of a domestic insurer or of an insurance holding company controlling a domestic insurer.
(b)    This subtitle does not apply to an offer for or invitation for tender of voting securities, or to an agreement to exchange securities for or otherwise to acquire control of a domestic insurer or of an insurance holding company controlling a domestic insurer, to the extent that the Commissioner determines that this subtitle is not intended to apply to the transaction and exempts the transaction from this subtitle by regulation or order.
(c)    This subtitle does not apply to a securities broker who, while acting in the usual and customary broker’s function, holds less than 20% of the voting securities of an insurer or of a person controlling an insurer.
(d)    This subtitle does not apply to the issuer of securities that makes a tender offer for, invites tenders of, enters into an agreement to exchange securities for, or otherwise acquires any voting security or security convertible into voting security of a domestic insurer or of an insurance holding company controlling a domestic insurer.
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 7-302 - Compliance With Subtitle Required

With respect to a transaction subject to this subtitle, a person must comply with all requirements of this subtitle before the person:
(1)    makes a tender offer for, invites tenders of, enters into an agreement to exchange securities for, or otherwise acquires any voting security or security convertible into voting security of a domestic insurer, or a person, including an insurance holding company, that controls a domestic insurer; or
(2)    makes an agreement to merge with or otherwise to acquire 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 3 - Acquisition of Control of Domestic Insurer or Insurance Holding Company › Section 7-303 - Pre-Acquisition or Pre-Divestiture Notification

(a)    With respect to a transaction subject to this subtitle, a person seeking to acquire control of a domestic insurer must file with the Commissioner the pre–acquisition notification required under Subtitle 4 of this title.
(b)    The pre–acquisition notification must be filed at least 30 days before a transaction subject to this subtitle is proposed to become effective.
(c)    The Commissioner may impose sanctions under § 7–405 of this title for failure to file the information required under subsection (a) of this section.
(d)    (1)    Any person that controls a domestic insurer seeking to divest its controlling interest in the domestic insurer shall file a confidential notice of its proposed divestiture with the Commissioner at least 30 days before the proposed divestiture and provide a copy of the notice to the insurer.
(2)    The Commissioner shall determine those instances in which the party seeking to divest a controlling interest in an insurer must file for and obtain approval of the transaction.
(3)    The information regarding the divestiture shall remain confidential until the conclusion of the transaction unless, in the Commissioner’s discretion, the Commissioner determines that confidential treatment will interfere with enforcement of this section.
(4)    Unless the Commissioner determines otherwise, this subsection does not apply if the statement required by subsection (a) of this section is filed.
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 7-305 - Invitations for Tenders and Agreements

(a)    At the time a person files the statement required by § 7-304 of this subtitle, the person shall:
(1)    file with the Commissioner:
(i)    all invitations for tenders or advertisements making a tender offer or inviting tenders of voting securities of the domestic insurer or insurance holding company controlling the domestic insurer made by or for the person; and
(ii)    any agreement to:
1.    exchange or otherwise acquire securities of the domestic insurer or insurance holding company controlling the domestic insurer; or
2.    merge with or otherwise acquire control of the domestic insurer or insurance holding company controlling the domestic insurer; and
(2)    send to the domestic insurer or insurance holding company controlling the domestic insurer:
(i)    copies of the documents specified in item (1) of this subsection; and
(ii)    any information contained in the statement filed under § 7-304 of this subtitle that the Commissioner requires by regulation.
(b)    (1)    By regulation, the Commissioner may set requirements that the Commissioner considers necessary or appropriate in the public interest or for the protection of policyholders for the contents of:
(i)    additional materials inviting tender offers after the initial invitations; and
(ii)    amendments to agreements described in subsection (a)(1)(ii) of this section.
(2)    The additional materials and amendments shall contain the information that the Commissioner requires.
(3)    The person required to file a statement under § 7-304 of this subtitle shall file with the Commissioner the additional materials and amendments required by paragraph (1) of this subsection and send copies to the domestic insurer or insurance holding company controlling the domestic insurer no later than the date that:
(i)    copies of the material are first published or sent or given to security holders; or
(ii)    the amendment is entered into.
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 7-306 - Review of Transactions by Commissioner

(a)    A transaction subject to this subtitle may not be made unless, within 60 days after the statement required by § 7–304 of this subtitle is filed with the Commissioner or within any extension of that period, the Commissioner approves the transaction or does not disapprove the transaction.
(b)    Subject to subsection (c) of this section, the Commissioner shall disapprove a proposed transaction subject to this subtitle if the Commissioner finds that:
(1)    after the transaction, the domestic insurer could not satisfy the requirements for the issuance of a certificate of authority to engage in the insurance business which it intends to transact or is licensed to transact in the State, taking into consideration the financial and managerial resources and future prospects of the domestic insurer;
(2)    the transaction may substantially lessen competition in insurance in the State or tend to create a monopoly;
(3)    the financial condition of an acquiring person might jeopardize the financial stability of the domestic insurer or prejudice the interests of its policyholders or, in the case of an acquisition of control, the interests of any remaining stockholders who are unaffiliated with the acquiring person;
(4)    the acquiring person has plans or proposals that are unfair or prejudicial to policyholders for liquidating the domestic insurer, selling its assets, merging it with another person, or making any other major change in its business or corporate structure or management;
(5)    it would not be in the interest of policyholders, shareholders, or the public to allow the acquiring person to control the domestic insurer based on the competence, experience, and integrity of the persons that would control the operations of the domestic insurer;
(6)    any party to an agreement to merge with a domestic insurer is not itself an insurer; or
(7)    the interests of the domestic insurer’s policyholders and stockholders might otherwise be prejudiced, impaired, or not properly protected.
(c)    In disapproving a transaction based on a finding under subsection (b)(2) of this section:
(1)    the Commissioner may not disapprove a transaction subject to this subtitle if the Commissioner finds that any of the situations meeting the criteria of § 7–405(b) of this title exist;
(2)    the Commissioner may condition the approval of a transaction subject to this subtitle on the removal of the basis of disapproval under subsection (b)(2) of this section within a specified period of time; and
(3)    the disapproval is subject to § 7–405(c) of this title and the informational requirements under § 7–403(c) of this title.
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 7-307 - Additional Experts

At the expense of the acquiring person, the Commissioner may retain attorneys, actuaries, accountants, and other experts not otherwise a part of the Commissioner’s staff as are reasonably necessary to help the Commissioner in reviewing the proposed transaction subject to this subtitle.
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 7-308 - Effects of Filing Statement

(a)    The courts of the State have jurisdiction over:
(1)    each person that does not reside in, is not domiciled in, or is not authorized to do business in the State that files a statement with the Commissioner under this subtitle; and
(2)    all actions arising out of a violation of this subtitle.
(b)    (1)    A person that is subject to the jurisdiction of the courts of the State under subsection (a)(1) of this section is deemed to appoint the Commissioner as attorney for service of process in any proceeding arising out of a violation of this subtitle.
(2)    Copies of all process shall be served on the Commissioner.
(3)    The Commissioner shall send a copy of the process by registered mail to the person at the person’s last known address.