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1644 LAWS OF MARYLAND Ch. 788
(B) THE INVESTMENTS IN ANY SUCH SEGREGATED ASSET
ACCOUNT SHALL BE SUBJECT TO THE PROVISIONS OF THIS
ARTICLE EXCEPT THAT:
(1) PREFERRED AND COMMON STOCK INVESTMENTS OF
AMOUNTS ALLOCATED TO ANY SUCH ACCOUNT SHALL NOT BE
INCLUDED IN APPLYING THE 10% LIMITATIONS PROVIDED IN THE
FIRST PROVISO OF SECTION 96, SUBSECTION (6) OF THIS ARTICLE.
(2) UP TO [[(50%]] 25% OF THE ASSETS OF ANY SUCH ACCOUNT
MAY BE INVESTED IN NON-DIVIDEND PAYING STOCK PROVIDED
THAT THE ISSUER OF SUCH STOCK HAS NOT HAD A NET
OPERATING LOSS IN MORE THAN TWO OF ITS TWELVE FISCAL
QUARTERS IMMEDIATELY PRECEDING THE DATE OF PURCHASE
OF THE STOCK, OR HAS NOT HAD A NET OPERATING LOSS IN
MORE THAN TWO OF ITS FISCAL QUARTERS FROM THE DATE OF
ITS INCORPORATION IF IT HAS NOT BEEN INCORPORATED FOR AT
LEAST THREE YEARS PRIOR TO THE DATE OF PURCHASE OF THE
STOCK.
[[(3)]] SUCH INVESTMENTS SHALL ALSO COMPLY WITH
RULES AND REGULATIONS PROMULGATED BY THE
COMMISSIONER [[IN REGARD TO SUCH SEGREGATED ASSET
ACCOUNTS]].
(c) No variable life insurance policies and annuity contracts shall be delivered,
or issued for delivery, in this State until the form thereof has been filed with and
approved by the Commissioner. The Commissioner shall, by regulation, determine
the grace, reinstatement and nonforfeiture provisions and other pertinent required
policy provisions which shall be appropriate to such variable contracts.
(D) [[AMOUNTS ALLOCATED TO A SEGREGATED ASSET
ACCOUNT SHALL BE OWNED BY THE COMPANY, AND THE
COMPANY SHALL NOT BE, NOR HOLD ITSELF OUT TO BE, A
TRUSTEE WITH RESPECT TO SUCH AMOUNTS.]] IF, AND TO THE
EXTENT, SO PROVIDED UNDER THE APPLICABLE CONTRACTS,
THAT PORTION OF THE ASSETS OF ANY SUCH SEGREGATED ASSET
ACCOUNT EQUAL TO THE RESERVES AND OTHER CONTRACT
LIABILITIES WITH RESPECT TO SUCH ACCOUNT SHALL NOT BE
CHARGEABLE WITH LIABILITIES ARISING OUT OF ANY OTHER
BUSINESS THE COMPANY MAY CONDUCT.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take
effect July 1, 1973.
Approved May 24, 1973.
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