Ch. 36                                     1995 LAWS OF MARYLAND

In subsection (b)(3) of this section, the reference to a firm, association, or
corporation "that maintains an office in the State" is added for clarity.

The only other changes are in style.

Defined terms: "License" § 8-501
"Person" § 1-101
"Reinsurance broker" § 8-501
"Reinsurance manager" § 8-501
"Reinsurer" § 8-501
"State" § 1-101

8-504. REQUIRED BONDS, INSURANCE, AND OTHER SECURITY.

(A)     IN GENERAL.

THE COMMISSIONER MAY REQUIRE A REINSURANCE MANAGER TO:

(1)      FILE A BOND FROM AN INSURER IN AN AMOUNT ACCEPTABLE TO
THE COMMISSIONER FOR THE PROTECTION OF EACH REINSURER THAT THE
REINSURANCE MANAGER REPRESENTS; AND

(2)      MAINTAIN AN ERRORS AND OMISSIONS POLICY IN AN AMOUNT
ACCEPTABLE TO THE COMMISSIONER.

(B)     FORM.

(1)     THE BOND REQUIRED UNDER SUBSECTION (A)(1) OF THIS SECTION
MUST BE WRITTEN BY AN INSURER THAT IS AUTHORIZED TO WRITE SURETY
INSURANCE IN THE STATE AND IS ACCEPTABLE TO THE COMMISSIONER.

(2)      SUBJECT TO THE APPROVAL OF THE COMMISSIONER, A
REINSURANCE MANAGER MAY PROVIDE SECURITY OTHER THAN A BOND,
INCLUDING AN IRREVOCABLE LETTER OF CREDIT, TO SATISFY THE REQUIREMENTS
OF SUBSECTION (A)(1) OF THIS SECTION.

REVISOR'S NOTE: This section formerly was Art. 48A, § 716.

In subsection (a)(1) of this section, the former introductory clause, "[s]ubject
to subsection (b) of this subsection", is deleted as surplusage.

The only other changes are in style.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101
"Reinsurance manager" § 8-501
"Reinsurer" § 8-501
"Surety insurance" § 1-101

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