J. MILLARD TAWES, Governor                     1013

surer is authorized to transact such insurance business in this State
or is a solvent insurer approved or accepted by the Commission-
er for the purpose of such reinsurance. The Commissioner shall not
so approve or accept any such reinsurance by a ceding domestic
insurer which he finds for good cause would be contrary to the inter-
ests of the policyholders or stockholders of such insurer.

(3)   No credit shall be allowed, as an asset or as a deduction from
liability, to any ceding insurer for reinsurance unless the reinsur-
ance is payable by the assuming insurer on the basis of the liability
of the ceding insurer under the contracts reinsured without diminu-
tion because of the insolvency of the ceding insurer.

(4)   Upon request of the Commissioner, a ceding insurer shall
promptly inform the Commissioner in writing of the cancellation or
any other material change of any of its reinsurance treaties or
arrangements.

(5)   This section does not apply to wet marine and transportation
insurance.

5. ASSETS AND LIABILITIES
75. "Admitted Assets" Defined.

In any determination of the financial condition of an insurer, there
shall be allowed as admitted assets only such assets as are owned by
the insurer and which consist of:

(1)   Cash in the possession of the insurer, or in transit under its
control, and including the true balance of any deposit in a solvent
bank, OR trust company, or in a savings and loan association insured
by an instrumentality of the United States Government or of the
Canadian Government.

(1A) SHARES IN SAVINGS AND LOAN ASSOCIATIONS OR
BUILDING AND LOAN ASSOCIATIONS TO THE EXTENT
THAT SUCH INVESTMENT OR ACCOUNT IS INSURED BY AN
INSTRUMENTALITY OF THE UNITED STATES GOVERN-
MENT OR OF THE CANADIAN GOVERNMENT, OR BY THE
MARYLAND SAVINGS-SHARE INSURANCE CORPORATION.

(2)   Investments, securities, properties and loans acquired or held
in accordance with this article, and in connection therewith the fol-
lowing items:

(i) Interest due or accrued on any bond or evidence of indebted-
ness which is not in default and which is not valued on a basis includ-
ing accrued interest.

(ii) Declared and unpaid dividends on stock and shares, unless
such amount has otherwise been allowed as an asset.

(iii) Interest due or accrued upon a collateral loan in an amount
not to exceed one year's interest thereon.

(iv) Interest due or accrued on deposits in solvent banks and trust
companies and in sayings and loan associations insured by an instru-
mentality of the United States Government or of the Canadian Gov-
ernment, OR BY THE MARYLAND SAVINGS-SHARE INSUR-
ANCE CORPORATION and interest due or accrued on other assets,