3620

LAWS OF MARYLAND

Ch. 643

(1979 Replacement Volume and 1981 Supplement)

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

Article 48A - Insurance Code

96.

Every domestic life insurer must have and continually
keep to the extent of an amount equal to its entire
reserves, as required by this article, invested in any
combination of the following types of assets subject to the
limit, if any, set forth with regard to each type or class
of investment:

(12) Such fee-simple or improved leasehold real
estate OR INTERESTS IN LIMITED PARTNERSHIPS FORMED FOR THE
DEVELOPMENT OR OWNERSHIP OF SUCH REAL ESTATE other than
property to be used primarily for mining, recreational,
amusement, hotel or club purposes, as may be acquired as an
investment for the production of income, or as may be
acquired to be improved or developed for any such investment
purposes, subject to the following conditions and
limitations:

(i) The cost of each parcel of real or
leasehold property OR LIMITED PARTNERSHIP INTEREST so
acquired under the authority of this subsection, including
the cost to the insurer of the improvement or development
thereof, when added to the book value of all other real or
leasehold property OR LIMITED PARTNERSHIP INTEREST then held
by it pursuant to this subsection, shall not exceed [5] 15
percent of its admitted assets and when added to the value
of all real estate however acquired or held for investment,
including home office and branch office properties, shall
not exceed 20 percent of the insurer's total admitted
assets; and

(ii) The cost of each parcel of real or
leasehold property OR LIMITED PARTNERSHIP INTEREST so
acquired under the authority of this subsection, including
the cost to the insurer of the improvement or development
thereof, shall not exceed 1 percent of the insurer's
admitted assets. Except as otherwise required by the
Commissioner, each parcel of real or leasehold property held
by an insurer EITHER DIRECTLY OR THROUGH A LIMITED
PARTNERSHIP under this section shall be valued on its books
as of 31 December of each year at an amount that will
include a write-down of the cost of such property, excluding
land cost but including all improvements or developments
costs, at a rate that will average not less than 2 percent
per annum of such cost for each year or part thereof that