Ch. 564

LAWS OF MARYLAND

(4) The liquidator, rehabilitator, or conservator of
any impaired insurer may notify all interested persons of the
effect of this subtitle.

531.

To aid in the detection and prevention of insurer
impairments:

(1)  The Commissioner shall examine any member insurer
[who] THAT the Commissioner has reasonable cause to believe [that
such insurer] may be unable or potentially unable to fulfill its
contractual obligations. The board of directors shall, upon
majority vote, notify the Commissioner of any information
indicating THAT any member insurer may be unable or potentially
unable to fulfill its contractual obligations[.];

(2)  The board of directors may, upon majority vote,
request that the Commissioner order an examination of any member
insurer which the board in good faith believes may be unable or
potentially unable to fulfill its contractual obligations. The
Commissioner may conduct such examination. The examination may be
conducted as a National Association of Insurance Commissioners
examination or may be conducted by such persons as the
Commissioner designates. The cost of any examination shall be
paid by the [Association] CORPORATION, and the examination report
shall be treated as are other examination reports. In no event
shall any examination report be released to the board of
directors of the [Association] CORPORATION prior to its release
to the public, but this shall not excuse the Commissioner from
[his] ANY obligation to comply with subsection (3). The
Commissioner shall notify the board of directors when the
examination is completed. The request for an examination shall
be kept on file by the Commissioner, but it shall not be open to
public inspection prior to the release of the examination report
to the public and shall be released at that time only if the
examination discloses that the examined insurer is unable or
potentially unable to meet its contractual obligations[.];

(3)  The Commissioner shall report to the board of
directors when [he] THE COMMISSIONER has reasonable cause to
believe that any member insurer examined at the request of the
board of directors may be unable or potentially unable to fulfill
its contractual obligations[.];

(4)  The board of directors may, upon majority vote,
make reports and recommendations to the Commissioner upon any
matter germane to the solvency, liquidation, rehabilitation or
conservation of any member insurer. Such reports and
recommendations shall not be considered public documents[.];

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