WILLIAM DONALD SCHAEFER, Governor                          H.B. 422

(III)    MAY EXCEED THE REINSURANCE MANAGER'S SETTLEMENT
AUTHORITY;

(IV)    HAS THE POTENTIAL OF EXCEEDING THE LESSER OF AN
AMOUNT DETERMINED BY THE COMMISSIONER OR A LIMIT SET BY THE REINSURER;

(V)     REMAINS OPEN FOR MORE THAN 6 MONTHS FROM THE DATE
THE CLAIM IS RECEIVED BY THE REINSURANCE MANAGER; OR

(VI)    IS CLOSED BY PAYMENT OF THE LESSER AMOUNT SET BY THE
COMMISSIONER OR AN AMOUNT SET BY THE REINSURER.

(3)      (I) ANY SETTLEMENT AUTHORITY GRANTED TO THE
REINSURANCE MANAGER MAY BE TERMINATED FOR CAUSE UPON THE
REINSURER'S PROVIDING THE REINSURANCE MANAGER WITH 30 DAYS' NOTICE OF
THE TERMINATION OR UPON TERMINATION OF THE CONTRACT; AND

(II) THE REINSURER MAY SUSPEND THE SETTLEMENT AUTHORITY
DURING THE PENDENCY OF A DISPUTE REGARDING THE CAUSE FOR TERMINATION.

(4)      (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH, ALL CLAIM FILES ARE JOINT PROPERTY OF THE REINSURER AND THE
REINSURANCE MANAGER.

(II) IF THE COMMISSIONER OBTAINS AN ORDER OF LIQUIDATION,
REHABILITATION, REORGANIZATION, OR CONSERVATION AGAINST A REINSURER,
THE FILES SHALL BECOME THE SOLE PROPERTY OF THE PERSON APPOINTED
LIQUIDATOR, REHABILITATOR, CONSERVATOR, OR RECEIVER.

(5)      THE REINSURER SHALL HAVE REASONABLE ACCESS TO AND THE
RIGHT TO COPY THE CLAIM FILES ON A TIMELY BASIS.

(E) (1) IF THE CONTRACT PROVIDES FOR A SHARING OF INTERIM PROFITS
BY THE REINSURANCE MANAGER, SUBJECT TO PARAGRAPH (2) OF THIS
SUBSECTION, THE INTERIM PROFITS MAY NOT BE PAID UNTIL:

(I)       1 YEAR AFTER THE END OF EACH UNDERWRITING PERIOD
FOR PROPERTY BUSINESS;

(II)     5 YEARS AFTER THE END OF EACH UNDERWRITING PERIOD
FOR CASUALTY BUSINESS; OR

(III)    A LATER PERIOD SET BY THE COMMISSIONER FOR SPECIFIC
LINES OF INSURANCE.

(2) ANY INTERIM PROFITS MAY NOT BE PAID UNTIL THE ADEQUACY OF
RESERVES ON REMAINING CLAIMS IS VERIFIED AS PROVIDED IN § 711 § 712(C) OF
THIS SUBTITLE.

711.

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