WILLIAM DONALD SCHAEFER, Governor                          Ch. 27

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

[282.

(a)     A reciprocal insurer may be authorized to engage in the insurance business, if
it is otherwise in compliance with the applicable provisions of this article, and has surplus
funds of not less than the amounts required by the provisions of § 48, if writing
nonassessable policies, and § 253, if writing assessable policies.

(b)     In addition to the surplus requirements of subsection (a) above, reciprocal
insurers shall maintain a special surplus of not less than the amount required by § 49, if
writing nonassessable policies, and § 253, if writing assessable policies.

(c)     A reciprocal insurer may be authorized to engage in additional kinds of
insurance business if it has otherwise complied with the provisions of this article and
possesses and maintains surplus funds in amount equal to the minimum capital stock and
surplus required of a stock insurer for authority to engage in a like combination of kinds
of the insurance business.

(d)     Reciprocal insurers shall be subject to the deposit requirements of § 50, if
authorized to write nonassessable policies and § 253, if authorized to write assessable
policies.]

282.

(A)     A RECIPROCAL INSURER MAY BE AUTHORIZED TO ENGAGE IN THE
INSURANCE BUSINESS IF THE INSURER IS OTHERWISE IN COMPLIANCE WITH THE
APPLICABLE PROVISIONS OF THIS ARTICLE AND HAS SURPLUS FUNDS OF NOT LESS
THAN:

(1)      FOR WRITING ASSESSABLE POLICIES:

(I)      $375,000 FOR ONE KIND OF INSURANCE; AND

(II)     $750,000 FOR TWO OR MORE KINDS OF INSURANCE; OR

(2)      FOR WRITING NONASSESSABLE POLICIES:

(I)      $750,000 FOR ONE KIND OF INSURANCE; AND

(II)     $1,500,000 FOR TWO OR MORE KINDS OF INSURANCE.

(B)     A RECIPROCAL INSURER AUTHORIZED TO WRITE NONASSESSABLE
POLICIES IS ALSO SUBJECT TO THE DEPOSIT REQUIREMENTS OF § 50 OF THIS
ARTICLE.

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