Maryland Code, INSURANCE 3-103
Terms Used In Maryland Code, INSURANCE 3-103
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See - Trustee: A person or institution holding and administering property in trust.
(b) A domestic insurer may be formed either as a mutual insurer or stock insurer, as stated in its articles of incorporation.
(c) (1) Each policyholder of a domestic mutual insurer, other than a holder of a reinsurance contract, is a member of the mutual insurer, with each right and obligation of membership.
(2) Each policy shall state the provisions of paragraph (1) of this subsection.
(3) Any person, government, governmental unit, state, or political subdivision may be a member of a domestic, foreign, or alien mutual insurer.
(4) An officer, stockholder, trustee, or legal representative of a member:
(i) may be recognized as acting in a representative capacity for or on behalf of the member for the purpose of the membership; and
(ii) is not personally liable on the insurance contract for acting in that representative capacity.
(5) A Maryland corporation may participate as a member of a mutual insurer incidentally to the purpose for which the corporation is organized.
(d) (1) Each member of a domestic mutual insurer is entitled to one vote, or to the number of votes the bylaws provide, based on:
(i) the insurance in force;
(ii) the number of policies held; or
(iii) the amount of premium paid.
(2) Only the policyholder under a group policy is a member of the mutual insurer and is entitled to vote at the meetings of the mutual insurer.
(e) (1) Except as provided in paragraph (2) of this subsection, the board of directors of a domestic insurer shall have at least nine members.
(2) The board of directors of a domestic financial guaranty insurance company that is prohibited from issuing new policies of financial guaranty insurance shall have at least five members.