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Session Laws, 1970
Volume 695, Page 994   View pdf image
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994                              Laws of Maryland                       Ch. 420

has been in existence for at least twenty years prior to July 1, 1968,
and (3) maintains an automatic reinsurance treaty filed with and
approved by the Commissioner reinsuring liability coverages issued
by it in excess of a net amount of retention satisfactory to the
Commissioner.]

253. Mutuals; Assessable Basis; Assets Required.

(a)  A mutual insurer which proposes to or is writing assessable
policies must comply with all the requirements of this Article ex-
cept that the financial requirements of this section shall apply in
lieu of Sections 48, 49, 50 and 72.

(b)   Such an insurer shall hold bona fide applications for insur-
ance upon which it shall issue simultaneously, or it shall have in
force, at least twenty policies to at least twenty members for the
same kind of insurance, upon not less than two hundred separate
risks, each within the maximum single risk described herein.

(c)  For the purpose of transacting workmen's compensation and
employer's liability insurance, the application shall cover not less
than two thousand employees, each such employee being considered
a separate risk for determining the maximum single risk.

(d)  The "maximum single risk" shall not exceed twenty per cent
of the admitted assets, or three times the average risk, or one per
cent of the insurance in force, whichever is the greatest, any au-
thorized reinsurance taking effect simultaneously with the policy
being deducted in determining such maximum single risk.

(e)  Such an insurer shall have collected an annual cash premium,
or a full premium for the term for which the policy is written, if
for less than a year upon each application required for organization,
the total of which premiums shall be held in cash or in investments
authorized for capital and reserve under subtitle 7, and the total
assets, excluding any borrowed money or other borrowed assets,
other than borrowed surplus under Section 266 shall, for each kind
of insurance business specified in Section 48 of subtitle 3 of this
article (except as prohibited under Sections 252 and 369), be not
less than two hundred and fifty thousand dollars ($250,000) and
shall exceed the amount required for reserves and all other liabilities
by not less than one hundred and twenty-five thousand dollars
($125,000).

(f)  To qualify for authority to engage in two or more of the
kinds of insurance business permitted to be written on an assess-
able basis under this Article, the assets of a mutual insurer writing
assessable policies shall be not less than five hundred thousand
dollars ($500,000) and shall exceed the amount required for reserves
and all other liabilities by not less than two hundred and fifty thou-
sand dollars ($250,000).

(g)  Notwithstanding the other provisions of this section, any
domestic mutual insurer writing assessable policies which is li-
censed only for property insurance and casualty insurance other
than motor vehicle physical damage insurance, motor vehicle liabil-
ity insurance, or workmen's compensation, shall not be required to
have any greater amount of assets or surplus than it would be
required to have if it wrote only one kind of insurance, if such
insurer (1) restricts its operations to the county where its principal


 

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Session Laws, 1970
Volume 695, Page 994   View pdf image
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