Ch. 6

LAWS OF MARYLAND

Occurred: Ch. 553, Acts of 1963.

104.

The reserve investments of an insurer shall consist of the
following classes of assets subject to the limit, if any, set
forth with regard to each type or class of asset:

(2) Obligations, other than those eligible for
investment under subsection (6) of this section, issued, assumed
or guaranteed by any solvent institution created or existing
under the laws of the United States or of any state, district or
territory thereof, which are not in default as to principal or
interest, and which are qualified under any of the following
paragraphs:

(i) Obligations which are secured by adequate
collateral security and bear fixed interest and if during each of
any three, including either of the last two, of the five fiscal
years next preceding the date of acquisition by such insurer, the
net earnings of the issuing, assuming or guaranteeing institution
available for its fixed charges, as hereinafter defined, shall
have been not less than one and one-quarter times the total of
its fixed charges for such year, or obligations which, at the
date of acquisition by such insurer, are adequately secured and
have investment qualities and characteristics wherein the
speculative elements are not predominant. In determining the
adequacy of collateral security, not more than one third of the
total value of such required collateral shall consist of stock
other than stock meeting the requirements of [subdivision]
SUBSECTION (3) of this section.

(9) (ii) Any [insurer] INSURER, which is authorized
to do business in a foreign country or possession of the United
States or which has outstanding insurance or reinsurance
contracts on risks located in a foreign country or possession of
the United States, may invest in[,] or otherwise acquire or loan
upon securities and investments in such foreign country or
possession which are substantially of the same kinds, classes and
investment grades as those eligible for investment under this
subtitle; but the aggregate amount of such investments in a
foreign country or a possession of the United States and of cash
in the currency of such country or possession which is at any
time held by such insurer shall not, except as provided in
paragraph (i) of this subsection, exceed one and one-half times
the amount of its reserves and other obligations under such
contracts or the amount which such insurer is required by law to
invest in such country or possession, whichever shall be greater.

DRAFTER'S NOTE:

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