Section 7-102 - Legislative findings; statement of policy. - Maryland Statutes

§ 7-102. Legislative findings; statement of policy.
 

(a)  Legislative findings.- 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)  Statement of policy.- 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; and 

(4) establishing penalties for failure to disclose and providing for the disapproval of certain transactions. 
 

[An. Code 1957, art. 48A, § 491; 1995, ch. 36.]