Ch. 36                                      1995 LAWS OF MARYLAND

(I)      THOSE RECORDS, BOOKS, OR PAPERS IN THE POSSESSION OF
THE INSURER OR ITS AFFILIATES THAT ARE NECESSARY TO VERIFY THE
REGISTRATION STATEMENT; AND

(II)    ADDITIONAL INFORMATION RELEVANT TO THE
REGISTRATION STATEMENT.

(2) THE COMMISSIONER SHALL EXAMINE THE MATERIALS PRODUCED
UNDER THIS SUBSECTION AT THE TIME AND PLACE PRESCRIBED IN §§ 2-205
THROUGH 2-209 OF THIS ARTICLE.

(B)     LIMITATION.

(1)     THE COMMISSIONER MAY CONDUCT AN EXAMINATION UNDER
SUBSECTION (A) OF THIS SECTION ONLY:

(I)      IF THE EXAMINATION OF THE INSURER UNDER §§ 2-205
THROUGH 2-209 OF THIS ARTICLE IS INADEQUATE, OR THE INTERESTS OF THE
POLICYHOLDERS OF THE INSURER ARE BEING ADVERSELY AFFECTED; AND

(II)     WITHIN 3 YEARS AFTER THE FILING OF THE REGISTRATION
STATEMENT OR THE ADDITION OR AMENDMENT TO THE REGISTRATION
STATEMENT.

(2)      IN A MATTER INVOLVING FRAUD, THE 3-YEAR LIMITATION PERIOD
OF THIS SUBSECTION DOES NOT APPLY.

(C)     SERVICES OF ACCOUNTING FIRM.

(1)      IF REASONABLY NECESSARY, THE COMMISSIONER MAY RETAIN THE
SERVICES OF AN ACCOUNTING FIRM AT THE INSURER'S EXPENSE TO HELP IN AN
EXAMINATION UNDER SUBSECTION (A) OF THIS SECTION.

(2)     AN ACCOUNTING FIRM RETAINED UNDER THIS SUBSECTION IS
UNDER THE DIRECTION AND CONTROL OF THE COMMISSIONER AND ACTS ONLY IN
AN ADVISORY CAPACITY.

(D)    EXPENSE OF EXAMINATION.

AN INSURER THAT PRODUCES MATERIALS FOR AN EXAMINATION UNDER
SUBSECTION (A) OF THIS SECTION IS LIABLE FOR AND SHALL PAY THE EXPENSE OF
THE EXAMINATION IN ACCORDANCE WITH § 2-208 OF THIS ARTICLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 498.

In subsections (a)(2) and (d) of this section, the references to "materials" are
substituted for the former references to "books", "records'', "papers" and
"information" for brevity and consistency.

In subsection (b)(1)(ii) of this section, the former reference to "calendar"
years is deleted as surplusage.

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