Maryland Statutes
Subtitle 1 - Stock Insurers and Mutual Insurers
Section 3-127 - Sale of Securities

(a)    (1)    In this section the following words have the meanings indicated.
        (2)    “Offer to sell” has the meaning stated in the Maryland Securities Act.
        (3)    “Register” means to register securities with the Division of Securities in the Office of the Attorney General in accordance with §§ 11–502 and 11–504 of the Corporations and Associations Article.
        (4)    “Sale” has the meaning stated in the Maryland Securities Act.
    (b)    (1)    The filing requirements of subsections (c) and (d) of this section apply to a person that engages in, proposes to engage in, or assists in the promotion or formation of:
            (i)    a domestic insurer;
            (ii)    an insurance holding corporation; or
            (iii)    a corporation that finances:
                1.    a domestic insurer or the production of its business; or
                2.    an insurance holding corporation or the production of its business.
        (2)    This section does not apply to a person that is or will be an affiliate of an authorized insurer that is a member of an insurance holding company registered with the Commissioner under § 7–601 of this article.
    (c)    Within 5 days after a registration is filed with the Division of Securities, a person that is required to register a proposed sale or offer to sell securities under the Maryland Securities Act shall file with the Commissioner a copy of that registration.
    (d)    At least 30 days before the proposed sale or offer to sell securities, a person that is exempt under § 11–602(9) and (10) of the Corporations and Associations Article from the registration requirements of §§ 11–502 and 11–504 of the Corporations and Associations Article shall file with the Commissioner the information otherwise required by § 11–502 or § 11–504 of the Corporations and Associations Article.
    (e)    (1)    If the Commissioner determines that a person has engaged in or is about to engage in an act or practice that violates this section, the Commissioner, without notice and before a hearing, may issue and cause to be served on the person an order to cease and desist from engaging in the acts for which filing is required under this section.
        (2)    (i)    Unless postponed by mutual consent of the parties, the Commissioner shall hold a hearing within 30 days after the date of the order.
            (ii)    The Commissioner shall provide notice of the hearing to each party.
    (f)    The Commissioner has the enforcement powers listed in §§ 2–201 and 2–203 of this article.
    (g)    (1)    In addition to any penalty otherwise applicable under this article, the Commissioner may impose a civil penalty not exceeding $500 for each violation of this section.
        (2)    Each day a violation of this section continues is a separate violation.

Structure Maryland Statutes

Maryland Statutes

Insurance

Title 3 - Kinds of Insurers

Subtitle 1 - Stock Insurers and Mutual Insurers

Section 3-101 - Scope of Subtitle

Section 3-102 - Applicability of General Corporation Statutes and Insurance Article

Section 3-103 - Formation of Domestic Insurers

Section 3-104 - Approval of Articles of Incorporation and Charter

Section 3-105 - Prerequisites to Solicitation by Prospective Mutual Insurer

Section 3-106 - Assets Required for Mutual Insurer -- in General

Section 3-107 - Assets Required for Mutual Insurer -- Engaging in Business on Assessable Basis

Section 3-108 - Engaging in Additional Kinds of Insurance Business

Section 3-109 - Impairment of Required Surplus

Section 3-110 - Contingent Liability of Members

Section 3-111 - Levy of Assessment

Section 3-112 - Enforcement of Contingent Liability

Section 3-113 - Issuance of Nonassessable Policies

Section 3-114 - Participating Policies

Section 3-115 - Dividends

Section 3-116 - Loans to Insurers

Section 3-117 - Loans to and Guarantees of Obligations of Directors and Officers

Section 3-118 - Agreements to Pay Expenses of Management

Section 3-119 - Restrictions on Purchase and Sale of Equity Securities of Domestic Stock Insurers

Section 3-120 - Conversion of Stock Insurer to Mutual Insurer

Section 3-121 - Conversion of Mutual Insurer to Stock Insurer

Section 3-121.1 - Mutual Insurer Reorganization as Stock Insurer; Establishment of Mutual Insurance Holding Company

Section 3-122 - Consolidations, Mergers, and Share Exchanges of Stock Insurers

Section 3-123 - Consolidations and Mergers of Mutual Insurers

Section 3-123.1 - Mutual Insurers Forming a Business Combination

Section 3-124 - Bulk Reinsurance -- Stock Insurers

Section 3-125 - Bulk Reinsurance -- Mutual Insurers

Section 3-126 - Changes in Domicile of Insurers

Section 3-127 - Sale of Securities

Section 3-128 - Solicitations in Other States