PARRIS N. GLENDENING, Governor

Ch. 36

REVISOR'S NOTE: This section formerly was CA § 6-404.

In subsection (a)(4) of this section, the term "advance premiums" is
substituted for the former reference to "advanced payments" for consistency
with terminology used in § 8-415(b) and (c) of this subtitle.

The only other changes are in style.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101
"Society" § 8-401

8-413. MINIMUM CAPITAL.

(A)     AMOUNT REQUIRED ON APPLICATION.

EACH SOCIETY THAT APPLIES ON OR AFTER JULY 1, 1968, FOR AN INITIAL
CERTIFICATE OF AUTHORITY UNDER THIS SUBTITLE MUST HAVE WORKING
CAPITAL OF AT LEAST $125,000.

(B)     AMOUNT REQUIRED TO BE MAINTAINED.

AFTER ISSUANCE OF ITS INITIAL CERTIFICATE OF AUTHORITY, A SOCIETY
DESCRIBED IN SUBSECTION (A) OF THIS SECTION SHALL MAINTAIN UNENCUMBERED
ASSETS THAT EXCEED ALL LIABILITIES BY $100,000.

REVISOR'S NOTE: This section is new language derived without substantive
change from former CA § 6-405.

In subsection (b) of this section, the former reference to maintaining a certain
amount of assets "at all times" is deleted as implicit in the requirement that
those assets be maintained "[a]fter issuance of [the society's] certificate of
authority".

Defined terms: "Certificate of authority" § 1-101
"Society" § 8-401

8-414. PRELIMINARY CERTIFICATE OF AUTHORITY.

IF A SOCIETY COMPLIES WITH THIS SUBTITLE, THE COMMISSIONER SHALL:

(1)      CERTIFY, RETAIN, AND RECORD THE ARTICLES OF INCORPORATION
OF THE SOCIETY; AND

(2)      PROVIDE THE INCORPORATORS WITH A PRELIMINARY
CERTIFICATE OF AUTHORITY THAT AUTHORIZES THE SOCIETY TO SOLICIT
MEMBERS AS PROVIDED IN THIS SUBTITLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former CA § 6-406.

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