Mutual Insurance Holding Companies - Conversion to Mutual Insurers
Maryland Legislative Events
Summary
Maryland Senate Bill 982 passed the Senate on April 7, 2026, authorizing mutual insurance holding companies to convert to mutual insurers through a Commissioner-approved plan of conversion. The bill establishes requirements for plan adoption, approval process, and submission to the Maryland Insurance Administration. The legislation now proceeds to the House of Delegates for consideration.
What changed
Senate Bill 982 proposes to authorize mutual insurance holding companies to convert their mutual insurance holding company system to a mutual insurer. The conversion requires adoption of a plan of conversion and approval by the Maryland Insurance Commissioner. The bill establishes procedural requirements for submitting the plan to the Commissioner for review and approval.
For mutual insurance holding companies operating in Maryland, this bill provides a statutory pathway for conversion that did not previously exist. Insurance companies considering such a restructuring will need to develop compliant plans of conversion meeting the bill's requirements. The Maryland Insurance Administration will gain regulatory authority over these conversion proceedings, potentially requiring additional administrative processes and filings.
What to do next
- Insurers: Review current mutual insurance holding company structure and assess potential conversion implications
- Insurers: Monitor SB982 as it progresses through the Maryland House of Delegates
- Insurers: Consult with legal counsel regarding plan of conversion requirements if conversion is contemplated
Source document (simplified)
ChangeBridge / Maryland / SB982 Passed SB982 Senate Bill Passed 2026-02-15
Mutual Insurance Holding Companies - Conversion to Mutual Insurers
Authorizing a mutual insurance holding company to convert its mutual insurance holding company system to a mutual insurer on adoption and approval of a plan of conversion; and establishing certain requirements related to the plan of conversion and its submission to the Maryland Insurance Commissioner for approval.
Bill Details
State Maryland
Session 2026 Regular Session
Chamber Senate
Official Source mgaleg.maryland.gov/mgawebsite/Legislation...
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Sponsors
Cory McCray (Sen - D)
Action History
2026-04-07 S Second Reading Passed 2026-04-07 S Favorable Adopted 2026-04-06 S Favorable Report by Finance 2026-03-23 S Hearing 3/26 at 1:00 p.m. 2026-03-20 S Rereferred to Finance 2026-02-15 S First Reading Senate Rules
Committee Referrals
2026-02-15 S Rules 2026-03-20 S Finance
Bill Text Versions
2026-02-20 Introduced 2026-04-07 Engrossed
Subjects
Insurance - Other than Health Commerce and Business Hearings Insurance Administration Insurance Notices Plans and Proposals Rules and Regulations Legislative data powered by LegiScan (CC BY 4.0)
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