HARRY HUGHES, Governor                                 2769

risks; clarifying language; and generally relating to
the procuring of surplus line insurance.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 43 and 184

Annotated Code of Maryland

(1979 Replacement Volume and 1979 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A - Insurance Code

43.

A certificate of authority shall not be required of an
insurer with respect to the following:

(1) Transactions relative to its policies

lawfully written in Maryland, or liquidating of assets and
liabilities of the insurer (other than collection of new
premiums), all as resulting from its former authorized
operations in Maryland.

(2) Transactions subsequent to issuance of a
policy covering only subjects of insurance not resident,
located, or expressly to be performed in Maryland at time of

issuance, or covering property in the course of

transportation by land, air or water to, from or through
Maryland and including any preparation or storage incidental
thereto, and which coverage was lawfully solicited, written,
and delivered outside Maryland.

(3) Transactions pursuant to surplus lines

coverages lawfully written pursuant to subtitle 13 of this
article. FOR THE PURPOSES OF THIS ARTICLE ALL MEDICAL

PROFESSIONAL LIABILITY INSURANCE UNDERWRITTEN BY

UNAUTHORIZED FOREIGN, BUT NOT ALIEN INSURERS, SHALL BE
TREATED IN ALL RESPECTS AS SURPLUS LINE COVERAGE
TO THE REQUIREMENTS OF § 184(B) OF THIS ARTICLE WHETHER OR
NOT THAT INSURANCE IS AVAILABLE WITHIN THE STATE. MEDICAL
PROFESSIONAL LIABILITY INSURANCE WRITTEN BY UNAUTHORIZED
FOREIGN, BUT NOT ALIEN INSURERS, SHALL NOT BE SUBJECT TO THE
REQUIREMENTS OF SECTION 184(B) OF THIS ARTICLE.

(4) Reinsurance transactions, except as to

domestic reinsurers.

184.

If the full amount or policy of insurance required to
protect the interest of the insured cannot be obtained from
insurers who are authorized to do business in this State,