2013 Maryland Code
INSURANCE
§ 3-221 - Mergers and conversions
§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.
Disclaimer: These codes may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
