Maryland Insurance Section 3-221

      (a)      A domestic reciprocal insurer may merge with another reciprocal insurer or be converted to a stock insurer or mutual insurer if:

            (1)      at least two-thirds of the subscribers who vote on the merger or conversion after notice vote in favor of the merger or conversion; and

            (2)      the Commissioner approves the terms of the merger or conversion.

      (b)      The Commissioner may not approve a plan for merger or conversion unless:

            (1)      the plan is equitable to subscribers; and

            (2)      for conversion to a stock insurer, the plan gives each subscriber:

                  (i)      preferential right to acquire stock of the proposed stock insurer proportionate to the subscriber's interest in the reciprocal insurer; and

                  (ii)      a reasonable length of time to exercise the preferential right.

      (c)      If a domestic reciprocal insurer converts to a stock insurer or mutual insurer, the successor stock insurer or mutual insurer is subject to the same capital or surplus requirements and has the same rights as a like domestic insurer that transacts like kinds of insurance business.