Ch. 507                                         1993 LAWS OF, MARYLAND

355A.

(A) (1) IN THIS SECTION AND IN § 355 OF THIS SUBTITLE, THE FOLLOWING
WORDS HAVE THE MEANINGS INDICATED.

(2) (I) "ASSETS" MEANS ASSETS THAT ARE:

(I) 1. AUTHORIZED UNDER § 359 OF THIS ARTICLE; AND

(II) 2. DETERMINED BY THE COMMISSIONER TO BE ADMITTED
ASSETS UNDER THE GUIDELINES ISSUED BY THE NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS.

(II) "ASSETS" DOES NOT INCLUDE ANY:

1. CASH, NOTES, OR RECEIVABLES RESULTING FROM THE
SALE OF ANY ASSET OF A NONPROFIT HEALTH SERVICE PLAN OR ANY ASSET OF ANY
AFFILIATE OR SUBSIDIARY OF THE PLAN UNDER WHICH THE PURCHASER OF THE
ASSET HAS THE RIGHT, EXPLICIT OR IMPLIED, TO REQUIRE THE PLAN TO
REPURCHASE THE ASSET; OR

THAT:

OFFERING; OR

EXCHANGE.

2. STOCK OF ANY AFFILIATE OR SUBSIDIARY OF THE PLAN

A. HAS NOT BEEN ISSUED PURSUANT TO A PUBLIC

B. IS NOT PUBLICLY TRADED ON A RECOGNIZED STOCK

(III) NOTWITHSTANDING SUBPARAGRAPH (II)2 OF THIS
PARAGRAPH, "ASSETS" INCLUDES ANY STOCK OF A SUBSIDIARY OR AFFILIATE OF A
NONPROFIT HEALTH SERVICE PLAN TO THE EXTENT THAT THE COMMISSIONER
DETERMINES THAT THE STOCK HAS A VALUE THAT COULD BE MADE AVAILABLE
FOR THE PAYMENT OF PRESENT CLAIMS AND LOSSES.

(3)       "LIABILITIES" MEANS LIABILITIES THAT ARE DEFINED UNDER § 77
OF THIS ARTICLE, INCLUDING CONTINGENT LIABILITIES.

(4)       "PREMIUM" MEANS EARNED PREMIUMS UNDER:

(I)       INSURANCE POLICIES AND CONTRACTS; AND

(II)     THE INSURED PORTION OF OTHER CONTRACTS.

(5)       "SURPLUS" MEANS THE AMOUNT BY WHICH ASSETS EXCEED

LIABILITIES.

(B) A CORPORATION LICENSED UNDER THIS SUBTITLE SHALL MAINTAIN A
SURPLUS IN AN AMOUNT OF THE GREATER OF:

(1) $75,000; OR

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