Bill > HB1616

This bill allows a mutual insurance holding company, which is a non-stock corporation that owns 100% of a reorganized stock insurer (a stock company that was formerly a mutual insurer), to convert its entire system into a mutual insurer. This conversion process requires a detailed plan that outlines how membership interests will transfer, how future policyholders will become members, that existing policies will remain in effect, that shares of the reorganized stock insurer will be retired, and that the holding company and any intermediate stock companies will be dissolved. The plan must also ensure the converted mutual insurer has adequate surplus funds to protect its policyholders. Before the conversion can happen, the plan must be approved by the holding company's board of directors and at least 75% of its voting members, and then submitted to the Maryland Insurance Commissioner for approval at least 60 days in advance, along with other required documents like amendments to the insurer's governing documents and a 5-year operational plan. The Commissioner will approve the plan if it complies with the law and is equitable to all parties involved, and can impose additional conditions or retain experts to assist in the review.

Budget and Finance, Business and Industry, Government Affairs, Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1616?ys=2026RS