Ch. 36                                      1995 LAWS OF MARYLAND

(V) THE REINSURER SHALL HAVE REASONABLE ACCESS TO AND
THE RIGHT TO COPY THE CLAIM FILES ON A TIMELY BASIS.

(2) IF THE COMMISSIONER OBTAINS AN ORDER OF LIQUIDATION,
REHABILITATION, REORGANIZATION, OR CONSERVATION AGAINST A REINSURER,
THE FILES BECOME THE SOLE PROPERTY OF THE LIQUIDATOR, REHABILITATOR,
CONSERVATOR, OR RECEIVER.

(E) INTERIM PROFITS.

IF THE CONTRACT REQUIRED BY THIS SECTION ALLOWS A SHARING OF
INTERIM PROFITS BY THE REINSURANCE MANAGER, THE INTERIM PROFITS MAY
NOT BE PAID UNTIL:

(1)      (I) 1 YEAR AFTER THE END OF EACH UNDERWRITING PERIOD
FOR PROPERTY INSURANCE BUSINESS;

(II)     5 YEARS AFTER THE END OF EACH UNDERWRITING PERIOD
FOR CASUALTY INSURANCE BUSINESS; OR

(III)   A LONGER PERIOD THAT THE COMMISSIONER SETS FOR A
SPECIFIC LINE OF INSURANCE; AND                                               

(2)     THE ADEQUACY OF RESERVES ON REMAINING CLAIMS IS VERIFIED
AS PROVIDED IN § 8-520(A)(3) OF THIS SUBTITLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 726.

Subsection (a)(1) of this section is revised to clarify that it is the contract that
states the responsibilities of a reinsurance manager and a reinsurer that must
be approved by the board of directors of the reinsurer, and not the act of
setting out these responsibilities in a contract.

In the introductory language of subsection (c) of this section, the phrase "at a
minimum" is deleted as surplusage.

In subsection (c)(1) of this section, the reference to "rates" is substituted for
the former reference to "notes" for accuracy. This substitution conforms to
the terminology used in the Reinsurance Intermediary Model Act, from which
this section is derived.

Subsection (c)(2)(ii) of this section is revised to clarify that a reinsurance
manager has the duty to maintain its accounts and records in a form usable by
a reinsurer.

In subsection (c)(2)(iv)2 of this section, the reference to a dispute about the
termination "of the contract" is added for clarity.

In subsection (c)(2)(v)6 of this section, the reference to a statement of the
"reinsurance manager's" financial condition is substituted for the former
reference to a statement of "its" financial condition for clarity.

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