2013 Maryland Code
INSURANCE
§ 7-101 - Definitions [Subject to amendment effective January 1, 2014; amended version follows this section].


MD Ins Code § 7-101 (2013) What's This?

§7-101.

(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.

(d) “Insurance holding company” means a person that directly or indirectly controls an insurer or controls a person that controls an insurer.

(e) “Insurance holding company system” means two or more affiliates, at least one of which is an insurer.

(f) “Subsidiary” means an affiliate of a person that, directly or indirectly, through one or more intermediaries, is controlled by that person.

§ 7-101 - Definitions (Effective January 1, 2014)

(a) In general. -- In this title the following words have the meanings indicated.

** REVISOR'S NOTE

This subsection is new language derived without substantive change from the introductory language of former Art. 48A, § 492.

** REVISOR'S NOTE

The former limitation, "unless the context shall otherwise require", is deleted as an unnecessary statement of a standard rule of statutory construction that applies to all definitions.

(b) Affiliate. -- "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.

** REVISOR'S NOTE

This subsection is new language derived without substantive change from former Art. 48A, § 492(a).

** DEFINED TERMS:

"Control" § 7-101

** DEFINED TERMS:

"Person" § 1-101

**

(c) Control; controlling; controlled by; under common control with. -- "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.

SPECIAL REVISOR'S NOTE

Chapter 57, Acts of 1997, added this subsection, which was new language derived without substantive change from the first sentence of former Art. 48A, § 492(c).

DEFINED TERM:

"Person" § 1-101 **

(d) Enterprise risk. -- **

(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. -- "Insurance holding company" means a person that directly or indirectly controls an insurer or controls a person that controls an insurer.

REVISOR'S NOTE

This subsection is new language derived without substantive change from former Art. 48A, § 492(f).

REVISOR'S NOTE

The defined term "person" is substituted for the former word "company" for clarity and consistency throughout this article. Similarly, the defined term "insurer" is substituted for the former term "insurance company" for consistency throughout this article.

"Control" § 7-101

"Insurer" § 1-101

"Person" § 1-101

**

(f) Insurance holding company system. -- "Insurance holding company system" means two or more affiliates, at least one of which is an insurer.

REVISOR'S NOTE

This subsection is new language derived without substantive change from former Art. 48A, § 492(g).

REVISOR'S NOTE

The word "means" is substituted for the former phrase "consists of" for clarity.

REVISOR'S NOTE

The defined term "insurer" is substituted for the former term "insurance company" for consistency throughout this article.

"Affiliate" § 7-101

"Insurer" § 1-101

**

(g) Subsidiary. -- "Subsidiary" means an affiliate of a person that, directly or indirectly, through one or more intermediaries, is controlled by that person.

REVISOR'S NOTE

This subsection is new language derived without substantive change from former Art. 48A, § 492(j).

REVISOR'S NOTE

The word "specified", which formerly modified "person", is deleted as surplusage.

"Affiliate" § 7-101

"Control" § 7-101

"Person" § 1-101

**

(h) Ultimate controlling person. -- "Ultimate controlling person" means the person within a holding company system that is not controlled by any other person.

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