Ch. 565

LAWS OF MARYLAND

Article 48A - Insurance Code
416A.

(A)  (1) SUBJECT TO THE APPROVAL OF THE COMMISSIONER, AN
INSURER AUTHORIZED TO DELIVER OR ISSUE FOR DELIVERY AN ANNUITY
CONTRACT IN THE STATE MAY DELIVER OR ISSUE FOR DELIVERY ONE OR
MORE FUNDING AGREEMENTS.

(2) THE ISSUANCE OR DELIVERY OF A FUNDING AGREEMENT
IS NOT A BUSINESS AUTHORIZED UNDER §§ 62 THROUGH 74 OF THIS
ARTICLE, BUT DOES CONSTITUTE AN INSURANCE BUSINESS.

   (3) "FUNDING AGREEMENT" MEANS ANY AGREEMENT DESCRIBED
BY THIS SECTION.

(B)  (1) A FUNDING AGREEMENT MAY. BE ISSUED TO A PERSON, OR A
SUBSIDIARY OF A PERSON, THAT IS AUTHORIZED BY A STATE OR FOREIGN
COUNTRY TO ENGAGE IN AN INSURANCE BUSINESS.

(2) A FUNDING AGREEMENT MAY ALSO BE ISSUED TO AN
ENTITY OR INDIVIDUAL OTHER THAN A PERSON OR SUBSIDIARY AUTHORIZED
TO ENGAGE IN AN INSURANCE BUSINESS TO FUND:

(I) BENEFITS DIRECTLY OR INDIRECTLY UNDER AN
EMPLOYEE BENEFIT PLAN AS DEFINED IN THE FEDERAL EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AND MAINTAINED IN THE
UNITED STATES, OR BY A SIMILAR PLAN MAINTAINED IN A FOREIGN
COUNTRY;

(II) THE ACTIVITIES OF ANY ORGANIZATION EXEMPT
FROM TAXATION UNDER § 501(C) OF THE INTERNAL REVENUE. CODE .OF
1986, OR OF A SIMILAR ORGANIZATION IN ANY FOREIGN COUNTRY;

(III)   A PROGRAM, OR PLAN AS DEFINED IN § 457 OF
THE INTERNAL REVENUE CODE OF 1986, OF:

1.   THE FEDERAL GOVERNMENT;

2.   A STATE OR POLITICAL SUBDIVISION OF A
STATE; OR

                                     3. A FOREIGN COUNTRY OR POLITICAL

SUBDIVISION OF A FOREIGN COUNTRY; OR

(IV)   AN AGREEMENT PROVIDING FOR PERIODIC
PAYMENTS IN SATISFACTION OF A CLAIM; OR

(V) A PROGRAM OF AN ENTITY WHICH HAS ASSETS IN
EXCESS OF $25,000,000, OR AN INDIVIDUAL WHO HAS A NET WORTH IN

EXCESS OF $2,000,000.

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