Ch. 551                                        1994 LAWS OF MARYLAND'

(3) THE RATIOS OF COMMISSION EXPENSE, GENERAL INSURANCE
EXPENSE, POLICY BENEFITS AND REVERSE RESERVE INCREASES AS TO ANNUAL
PREMIUM, AND NET INVESTMENT INCOME WHICH COULD LEAD TO AN IMPAIRMENT
OF CAPITAL AND SURPLUS;

(4)      WHETHER THE INSURER'S ASSET PORTFOLIO, WHEN VIEWED IN
LIGHT OF CURRENT ECONOMIC CONDITIONS, IS NOT OF SUFFICIENT VALUE,
LIQUIDITY, OR DIVERSITY TO ASSURE THE INSURER'S ABILITY TO MEET ITS
OUTSTANDING OBLIGATIONS AS THEY MATURE;

(5)      THE. ABILITY OF AN ASSUMING REINSURER TO PERFORM,
INCLUDING CONSIDERATION OF WHETHER AN INSURER'S REINSURANCE PROGRAM
PROVIDES SUFFICIENT PROTECTION FOR THE INSURER'S REMAINING SURPLUS,
AFTER TAKING INTO ACCOUNT THE INSURER'S CASH FLOW, THE CLASSES OF
BUSINESS WRITTEN, AND THE FINANCIAL CONDITION OF THE ASSUMING
REINSURER;

(6)      WHETHER AN INSURER'S OPERATING LOSS IN THE LAST 12-MONTH
PERIOD OR ANY SHORTER PERIOD OF TIME (INCLUDING NET CAPITAL GAIN OR
LOSS, CHANGE IN NON-ADMITTED ASSETS, AND CASH DIVIDENDS PAID TO
SHAREHOLDERS) IS GREATER THAN 50% OF THAT PORTION OF THE INSURER'S
POLICYHOLDER SURPLUS THAT IS IN EXCESS OF THE MINIMUM REQUIRED;

(7)      WHETHER ANY AFFILIATE, SUBSIDIARY, OR REINSURER IS
INSOLVENT, THREATENED WITH INSOLVENCY, OR DELINQUENT IN THE PAYMENT
OF ANY MONETARY OR OTHER OBLIGATION;

(8)      CONTINGENT LIABILITIES, PLEDGES OR GUARANTEES THAT,
EITHER INDIVIDUALLY OR COLLECTIVELY, INVOLVE A TOTAL AMOUNT WHICH THE
COMMISSIONER BELIEVES MAY AFFECT THE SOLVENCY OF THE INSURER;

(9) WHETHER ANY CONTROLLING PERSON OF AN INSURER IS
DELINQUENT IN THE TRANSMISSION OR PAYMENT OF" NET PREMIUMS TO THE
INSURER;

(10)    THE AGE AND COLLECTIBILITY OF RECEIVABLES;

(11)    WHETHER THE MANAGEMENT OF AN INSURER, INCLUDING
OFFICERS, DIRECTORS, OR ANY OTHER PERSON WHO DIRECTLY OR INDIRECTLY
CONTROLS THE OPERATION OF THE INSURER, FAILS TO POSSESS AND
DEMONSTRATE . THE COMPETENCE, FITNESS, AND REPUTATION DEEMED
NECESSARY TO SERVE THE INSURER IN SUCH POSITION;

(12)    WHETHER THE MANAGEMENT OF AN INSURER HAS FAILED TO
RESPOND TO INQUIRIES RELATIVE TO THE CONDITION OF THE INSURER OR HAS
FURNISHED FALSE AND MISLEADING INFORMATION CONCERNING AN INQUIRY;

(13)    WHETHER THE MANAGEMENT OF AN INSURER HAS:

(I) FILED ANY FALSE OR MISLEADING SWORN FINANCIAL
STATEMENT;

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