Ch. 36

1995 LAWS OF MARYLAND

In subsection (d)(2) of this section, the former word "hereafter" is deleted as
surplusage.

In subsection (d)(3) of this section, the former word "limit" is deleted as
unnecessary in light of the word "restrict".

Defined terms: "Foreign insurer" § 1-101
"Insurance business" § 1-101
"Insurance contract" § 1-101
"Insurer" § 1-101
"Mutual insurer" § 1-101
"Person" § 1-101
"Reciprocal insurer" § 1-101.
"Reinsurance" § 1-101                         

"Stock insurer" § 1-101

4-103. CAPITAL AND SURPLUS REQUIREMENTS — IN GENERAL.

(A) BASED ON ALL KINDS OF INSURANCE.

CAPITAL AND SURPLUS REQUIREMENTS FOR AN INSURER SHALL BE BASED ON
ALL THE KINDS OF INSURANCE BUSINESS THAT THE INSURER TRANSACTS OR WILL
TRANSACT, REGARDLESS OF WHERE THE INSURANCE BUSINESS IS TRANSACTED.

(B)     GENERAL requirements.

TO QUALIFY FOR AN INITIAL CERTIFICATE OF AUTHORITY TO ENGAGE IN ONE
KIND OR A COMBINATION OF KINDS OF INSURANCE BUSINESS, AN INSURER MUST
HAVE AND MAINTAIN THE CAPITAL STOCK AND SURPLUS REQUIREMENT OF:

(1)     §§ 4-104 AND 4-105 OF THIS SUBTITLE, FOR A STOCK INSURER;

(2)     TITLE 3, SUBTITLE 1 OF THIS ARTICLE, FOR A MUTUAL INSURER;

(3)     TITLE 3, SUBTITLE 2 OF THIS ARTICLE, FOR A RECIPROCAL INSURER;

(4)     TITLE 8, SUBTITLE 4 OF THIS ARTICLE, FOR A FRATERNAL BENEFIT
SOCIETY; AND

(5)     TITLE 14, SUBTITLE X OF THIS ARTICLE [SUBTITLE 20 OF 48A], FOR A
NONPROFIT HEALTH SERVICE PLAN.

(C) REASONABLENESS OF ASSETS AND SURPLUS AS REGARDS
POLICYHOLDERS.

(1) IN ADDITION TO ANY OTHER CAPITAL AND SURPLUS
REQUIREMENTS OF THIS ARTICLE, EACH INSURER'S ASSETS AND SURPLUS AS
REGARDS POLICYHOLDERS SHALL BE REASONABLE IN RELATION TO THE
INSURER'S OUTSTANDING LIABILITIES AND ADEQUATE TO ITS FINANCIAL NEEDS.

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