PARRIS N. GLENDENING, Governor

Ch. 11

(D)    CONSERVATION OF ALIEN INSURERS.

THE COMMISSIONER MAY APPLY TO THE COURT FOR AN ORDER THAT
APPOINTS THE COMMISSIONER AS RECEIVER OR ANCILLARY RECEIVER, AND THAT
DIRECTS THE COMMISSIONER TO CONSERVE THE ASSETS OF AN ALIEN INSURER
THAT ARE LOCATED IN THE STATE:

(1)      ON ANY GROUND SPECIFIED IN SUBSECTION (A) OR (B) OF THIS
SECTION;

(2)     ON THE GROUND THAT THE ALIEN INSURER HAS FAILED TO
COMPLY WITHIN THE TIME DESIGNATED BY THE COMMISSIONER WITH AN ORDER
OF THE COMMISSIONER TO MAKE GOOD AN IMPAIRMENT OF THE TRUSTEED FUNDS
OF THE ALIEN INSURER; OR

(3)      ON THE GROUND THAT THE ASSETS OF THE ALIEN INSURER HAVE
BEEN SEQUESTRATED IN THE JURISDICTION IN WHICH THE ALIEN INSURER IS
DOMICILED OR IN ANOTHER JURISDICTION.

(E)     ANCILLARY LIQUIDATION OF FOREIGN INSURERS.

THE COMMISSIONER MAY APPLY TO THE COURT FOR AN ORDER THAT
APPOINTS THE COMMISSIONER AS ANCILLARY RECEIVER AND THAT DIRECTS THE
COMMISSIONER TO LIQUIDATE THE BUSINESS OF A FOREIGN INSURER THAT HAS
ASSETS, BUSINESS, OR CLAIMS IN THIS STATE ON APPOINTMENT IN THE
DOMICILIARY STATE OF THE FOREIGN INSURER OF A RECEIVER OR OTHER
OFFICER BY WHATEVER NAME CALLED TO LIQUIDATE THE BUSINESS OF THE
FOREIGN INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 136, 137, 138, 139, 140, and 141(e).

In subsection (a)(5) of this section, the reference to "without having first
obtained the written approval of the Commissioner" is revised to qualify
action by an insurer to transfer its property or business as it was unclear under
former Art. 48A, § 136(5) whether this reference was also intended to qualify
action taken by an insurer to merge, consolidate, or reinsure its property or
business.

In subsection (a)(6) of this section, the former reference to a "valid" order of
the Commissioner is deleted as implicit in the obligation of the insurer under
this item to comply with an order of the Commissioner.

In subsection (a)(7) of this section, the former specific reference to an
"officer, director, general agent, trustee, employee, [or] manager" is deleted
for consistency with subsection (a)(12) of this section. The former list of
entities was not exclusive and, as such, may have been misleading.

In subsection (a)(8) of this section, the former reference to a "conservator" is
deleted in light of the defined term "receiver".

In subsection (b)(1)(ii) of this section, the defined term "impaired insurer" is

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