§ 3–221
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 3-221 (2026)
Title 3. Kinds of Insurers
Subtitle 2. Reciprocal Insurers
§ 3–221LinkCopy Citation
(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.