Section 7-201 - Authority to acquire subsidiary. - Maryland Statutes

§ 7-201. Authority to acquire subsidiary.
 

(a)  In general.- 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 agency 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)  Subsidiary insurance holding company.- 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. 
 

[An. Code 1957, art. 48A, § 493; 1995, ch. 36; 1997, ch. 293, § 2.]