Ch. 420

1995 LAWS OF MARYLAND

Article - Insurance

4-115.

(A) IN THIS SECTION, "REINSURER FINANCIAL GUARANTY REINSURANCE
COMPANY" MEANS AN INSURER THAT DERIVES ALL OF ITS DOMESTIC AT LEAST 90%
OF ITS GROSS WRITTEN PREMIUM FROM THE BUSINESS OF FINANCIAL GUARANTY
REINSURANCE.

[(a)](B) (1) Except as provided in paragraph (2) of this subsection, a domestic
insurer may not move its home or executive office out of the State without notice to and
approval by the Commissioner.

(2) A [domestic risk retention group, as defined in § 22-XXX of this article
[Art. 48A § 617(k)],] REINSURER FINANCIAL GUARANTY REINSURANCE COMPANY
that became domiciled in the State on or before December 31, 1993, is not required to
have an office in the State.

[(b)](C) (1) A domestic insurer, including a reciprocal insurer, fraternal
benefit society, or nonprofit health service plan, with its home or executive office in the
State shall keep in the State:

(i) its general ledger accounting records; and

(ii) subject to subsection [(c)] (D) of this section, all of its assets
except:

1.       real property lawfully owned by the insurer and located
outside of the State, personal property appurtenant to the real property, or mortgages on
the real property;

2.       property of the insurer that is customary and necessary to the
operation of the insurer's branch offices outside of the State;

3.       securities deposited in a jurisdiction outside of the State as a
condition of authority to transact business in that jurisdiction or securities deposited in
connection with obtaining surety bonds; and

4.       securities held for safekeeping by a bank or other institution
that:

A.      is approved by the Commissioner;

B.      is located in the United States or Canada, or in any
jurisdiction in which the insurer is licensed to do business; and

C.      has a custodial agreement with the insurer approved by the
Commissioner.

(2) A [risk retention group, as defined in § 22-xxx of this article [Art. 48A
§ 617(k)],] REINSURER FINANCIAL GUARANTY REINSURANCE COMPANY that
became domiciled in the State on or before December 31, 1993, and that does not have its
home or executive office in the State:

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