Maryland Statutes
Subtitle 1 - Definitions; General Provisions
Section 7-102 - Legislative Findings; Statement of Policy

(a)    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)    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;
        (4)    providing standards governing material transactions between an insurer and its affiliates; and
        (5)    establishing penalties for failure to disclose and providing for the disapproval of certain transactions.

Structure Maryland Statutes