§ 7-102
190 words·~1 min read·
/md/insurance/7-102A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§7–102.
(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.