Maryland Statutes
Subtitle 2 - Reciprocal Insurers
Section 3-221 - Mergers and Conversions

(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.

Structure Maryland Statutes