1024                           laws of Maryland                      [Ch. 553

THER, THAT THE COMMISSIONER MAY REFUSE TO GRANT
OR RENEW A CERTIFICATE OF AUTHORITY TO ANY FOR-
EIGN OR ALIEN INSURER, IF HE FINDS THAT ITS INVEST-
MENTS DO NOT COMPLY IN SUBSTANCE WITH THE IN-
VESTMENT REQUIREMENTS AND LIMITATIONS IMPOSED
BY THIS SUBTITLE UPON DOMESTIC INSURERS TRANSACT-
ING THE SAME KIND OR KINDS OF INSURANCE BUSINESS.
For the purposes of this section the domicile of an alien insurer,
other than an insurer formed under the laws of Canada, shall be
deemed to be that state in which it maintains its principal largest
deposit of trusteed assets.

88.    Eligibility of Investments.

(1)   Any particular investment held by an insurer on the effective
date of this article, and which was an authorized investment at the
time it was made, or which would be an authorized investment under
the provisions of this article, shall be deemed to be an eligible
investment.

(2)   Eligibility of an investment shall be determined as of the
date of its making or acquisition, except as stated in subsection (1)
above.

(3)   Any investment limitation based upon the amount of the
insurer's assets or particular funds shall relate to such assets or
funds as shown by the insurer's annual statement as of the December
31st next preceding date of acquisition of the investment by the
insurer, or as shown by a current financial statement reflecting the
result of merger or consolidation with another insurer, bulk reinsur-
ance, or change in capitalization.

89.    General Qualifications.

(1)   No security or investment shall be eligible for purchase at a
price above its market value.

(2)   No provision of this subtitle shall prohibit the acquisition by
an insurer of other or additional securities or property if received
as a dividend or as a lawful distribution of assets, or under a lawful
and bona fide agreement of bulk reinsurance, merger, or consoli-
dation.

(3)   Nothing in this section shall prohibit an insurer from acquir-
ing control of another insurer.

90.    Authorization of Investment.

A life insurer shall not make any investment or loan (other than
policy loans or annuity contract loans) unless the same is author-
ized or approved by the insurer's board of directors or by a com-
mittee authorized by such board and charged with the supervision
or making of such investment or loan. The minutes of any such com-
mittee shall be recorded and regular reports of such committee shall
be submitted to the board of directors.

91.    Prohibited Investments.

In addition to investments excluded pursuant to other provisions
of this article, an insurer shall not directly or indirectly invest in or
lend its funds upon the security of: