Maryland Code, INSURANCE 3-221
Terms Used In Maryland Code, INSURANCE 3-221
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
(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.