S.B. 703

VETOES

(2)      (A) [No] EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS
SUBSECTION, A domestic insurance company [shall] MAY NOT move its home or
executive office, except within the borders of this State, without notice to and approval of
the Commissioner.

(B) A DOMESTIC RISK RETENTION GROUP, AS DEFINED IN § 617(K) OF
THIS ARTICLE, THAT BECAME DOMICILED IN THIS STATE BEFORE JANUARY 1, 1994 IS
NOT REQUIRED TO HAVE AN OFFICE IN THIS STATE.

(3)      (A) [Every] EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS
SUBSECTION, EACH domestic insurer, including those subject to §§ 276 through 361,
having its home or executive office within the geographical limits of this State shall keep
within this State:

[(a)] (I) Its complete general ledger accounting [records,] RECORDS; AND

[(b)](II) Its entire assets except:

[(i)] 1. Real property and personal property appurtenant thereto, or
mortgages thereon, lawfully owned by the insurer and located outside of this [State.]
STATE;                                 

[(ii)]2. Such property of the insurer as may be customary and
necessary to the operation of its branch offices outside the [State.] STATE;

[(iii)] 3. Securities deposited within a jurisdiction outside of
Maryland, as a condition of authority to transact business in that jurisdiction or securities
deposited in connection with obtaining surety [bonds.] BONDS; AND

[(iv)] 4. Securities held for safekeeping by a bank, or other institution
in each case approved by the Commissioner, which is located within the United States or
Canada, or any jurisdiction in which the insurer is licensed to do business and which has
a custodial agreement with the insurer approved by the Commissioner.                 

(B) A DOMESTIC RISK RETENTION GROUP, AS DEFINED IN § 617(K) OF
THIS ARTICLE, THAT BECAME DOMICILED IN THIS STATE BEFORE JANUARY 1, 1994 AND
THAT DOES NOT HAVE ITS HOME OR EXECUTIVE OFFICE WITHIN THE
GEOGRAPHICAL LIMITS OF THIS STATE:

(I)       SHALL KEEP WITHIN THIS STATE ITS ENTIRE ASSETS AS
REQUIRED BY PARAGRAPH (A)(II) OF THIS SUBSECTION; AND

(II)     MAY MAINTAIN ITS GENERAL LEDGER ACCOUNTING RECORDS
OUTSIDE THIS STATE IF IT MAKES THOSE RECORDS AVAILABLE IN THIS STATE TO
THE COMMISSIONER WITHIN A REASONABLE TIME AFTER 2 BUSINESS DAYS AFTER
BEING REQUESTED TO DO SO BY THE COMMISSIONER.

(4)     This section shall not prohibit the holding of funds or the transmission of
securities outside this State for the purpose of securing or recording title to such
securities or for the purpose of the sale, loan, purchase, redemption, exchange or
alteration of the provisions of such securities.

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