Md. Code, Insurance § 3-105
This is the official text of Md. Code, Insurance § 3-105, part of Maryland’s Code, Insurance — regulates insurance companies and the policies they sell.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§3–105.
Official statutory text
(a) A person proposing to form a mutual insurer may not solicit in the State applications or premiums for policies of the proposed mutual insurer until the person provides the Commissioner with specific information about the methods and proposed cost of the promotion.
(b) (1) Before a person proposing to form a mutual insurer solicits applications or premiums for policies, the person shall have funds acquired in accordance with § 3-116 of this subtitle in the amount of:
(i) $125,000, if the person will solicit applications or premiums for one kind of insurance business, as set out in § 4-104 of this article; or
(ii) $250,000, if the person will solicit applications or premiums for two or more kinds of insurance business.
(2) The funds shall be held in cash or in investments authorized for capital and reserve under Title 5, Subtitle 6 of this article.
(c) (1) A person must obtain a license from the Commissioner before the person forms a mutual insurer in the State.
(2) Before issuing a license, the Commissioner shall investigate the record of the applicant.
(3) The Commissioner shall issue a license under this subsection if the Commissioner finds that the applicant is honest and trustworthy.
(b) (1) Before a person proposing to form a mutual insurer solicits applications or premiums for policies, the person shall have funds acquired in accordance with § 3-116 of this subtitle in the amount of:
(i) $125,000, if the person will solicit applications or premiums for one kind of insurance business, as set out in § 4-104 of this article; or
(ii) $250,000, if the person will solicit applications or premiums for two or more kinds of insurance business.
(2) The funds shall be held in cash or in investments authorized for capital and reserve under Title 5, Subtitle 6 of this article.
(c) (1) A person must obtain a license from the Commissioner before the person forms a mutual insurer in the State.
(2) Before issuing a license, the Commissioner shall investigate the record of the applicant.
(3) The Commissioner shall issue a license under this subsection if the Commissioner finds that the applicant is honest and trustworthy.
Status: in_force · Read it on the official government site
Need a lawyer in Maryland?
Find a Maryland lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.