1. (a) The General Assembly finds that the public interest and the interest of policyholders and stockholders may be adversely affected when:

   1. (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. (2) acquisition of control of an insurer would substantially lessen competition or create a monopoly in the insurance business in the State;
   3. (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. (4) an insurer pays to stockholders dividends that jeopardize the financial condition of the insurer.

2. (b) The purposes of this title include promoting the public interest by:

   1. (1) requiring disclosures in acquisitions or mergers;
   2. (2) requiring disclosures of material transactions, relationships between an insurer and its affiliates, and dividends to stockholders paid by insurers;
   3. (3) requiring disclosures of relevant information about changes in control of insurers;
   4. (4) providing standards governing material transactions between an insurer and its affiliates; and
   5. (5) establishing penalties for failure to disclose and providing for the disapproval of certain transactions.

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2013, c. 115, § 1, eff. Jan. 1, 2014.

Formerly Art. 48A, § 491.