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Committee hears identical House and Senate bills to allow conversions back to mutual insurers
Summary
House Bill 1616 and Senate Bill 982 would create a process for mutual insurance holding companies that are wholly policy‑owned to convert back into mutual insurers, preserving policyholder protections and requiring MIA review and high stakeholder approval thresholds.
Delegate Mike Rogers told the Finance Committee HB 1616 is a straightforward, technical bill that fills a gap in Maryland law by authorizing mutual insurance holding companies that remain 100% policy‑owned to convert back to mutual insurers. "This bill mirrors existing conversion processes, preserves all current policy protections, and keeps the Maryland Insurance Administration oversight and approvals requirements intact," Rogers said, noting the bill passed the House unanimously.
Gregory Ball, speaking for Senator McCray on SB 982, summarized the parallel Senate language and emphasized procedural safeguards including approval by the board and at least 75 percent of voting members, Maryland Insurance Commissioner review, submission of governance documents and a five‑year operational plan, and requirements to maintain adequate surplus funds.
Both witnesses said the measure carries no fiscal impact and would be used rarely but provides insurers an option to simplify corporate structure without affecting outside investors or policyholder protections. The committee closed the hearing on these cross‑filed bills after taking testimony and indicated no questions remained.
