§ 3-221
171 words·~1 min read·
/md/insurance/3-221A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§3–221.
(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.