Ch. 36

1995 LAWS OF MARYLAND

(4) AFTER A HEARING HELD UNDER TITLE 2 OF THIS ARTICLE, THE
COMMISSIONER MAY SET THE AMOUNT OF THE BOND TO EXCEED $500,000, UP TO
10% OF THE AVERAGE AMOUNT OF MONEY THAT THE ADMINISTRATOR EXPECTS TO
HANDLE AT ANY ONE TIME FOR ALL THE PLANS THAT THE ADMINISTRATOR
EXPECTS TO ADMINISTER DURING THE COMING YEAR.

(C)     INDIVIDUAL OR BLANKET BOND.

SUBJECT TO APPROVAL BY THE COMMISSIONER, THE BOND MAY BE AN
INDIVIDUAL BOND OR A BLANKET BOND THAT COVERS A GROUP OR CLASS.

(D)     EXEMPTIONS FROM BOND REQUIREMENT.

(1)      AN APPLICANT NEED NOT FILE EVIDENCE OF A BOND AS A
CONDITION OF REGISTRATION OR RENEWAL OF REGISTRATION IF:

(I)      THE APPLICANT ONLY ADMINISTERS PLANS UNDER WHICH
BENEFITS ARE PAID ONLY FROM THE GENERAL ASSETS OF AN EMPLOYEE
ORGANIZATION OR OF AN EMPLOYER; OR

(II)     THE APPLICANT:

1.        IS A CORPORATION ORGANIZED AND DOING BUSINESS
UNDER THE LAWS OF THE UNITED STATES OR A STATE;

2.        IS AUTHORIZED UNDER THE LAWS OF THE UNITED
STATES OR A STATE TO EXERCISE TRUST POWERS OR TO ENGAGE IN BUSINESS AS
AN INSURER;

3.        IS SUBJECT TO SUPERVISION OR EXAMINATION BY A
FEDERAL OR STATE AUTHORITY; AND

4.        AT ALL TIMES HAS A COMBINED CAPITAL AND SURPLUS
THAT EXCEEDS $1,000,000 OR ANY GREATER AMOUNT SET BY REGULATION OF THE
COMMISSIONER.

(2)      THE COMMISSIONER MAY WAIVE THE REQUIREMENT FOR AN
APPLICANT TO FILE EVIDENCE OF A BOND AS A CONDITION OF REGISTRATION OR
RENEWAL OF REGISTRATION IF THE COMMISSIONER FINDS THAT:

(I)       OTHER ARRANGEMENTS, INCLUDING PROVIDING LETTERS OF
CREDIT OR SIMILAR INSTRUMENTS, WOULD BE ADEQUATE TO PROTECT THE
INTERESTS OF PLAN PARTICIPANTS AND BENEFICIARIES; OR

(II)     THE OVERALL FINANCIAL CONDITION OF THE APPLICANT
WOULD BE ADEQUATE TO PROTECT THE INTERESTS OF PLAN PARTICIPANTS AND
BENEFICIARIES.

(E)     OTHER BONDING REQUIREMENTS.

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