Ch. 420                                    1995 LAWS OF MARYLAND

requiring certain financial guaranty reinsurance companies to keep certain assets in
the State; allowing certain financial guaranty reinsurance companies to keep certain
accounting records outside the State in certain situations; defining a certain term;
providing for the effective date of certain provisions of this Act; providing for the
future codification of certain provisions of this Act; and generally relating to the
location of the office, assets, and accounting records of risk retention groups and risk
retention groups and financial guaranty reinsurance companies.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 51

Annotated Code of Maryland
(1994 Replacement Volume and 1994 Supplement)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 4-115

Annotated Code of Maryland
(As enacted by Chapter__ (H.B. 11) of the Acts of the General Assembly of 1995)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

51. ,

(1) IN THIS SECTION, "FINANCIAL GUARANTY REINSURANCE COMPANY"
MEANS AN INSURER THAT DERIVES ALL OF ITS DOMESTIC AT LEAST 90 PERCENT OF
ITS GROSS WRITTEN PREMIUM FROM THE BUSINESS OF FINANCIAL GUARANTY
REINSURANCE.

[(1)](2) The Commissioner shall not grant or continue authority to engage in the
insurance business in this State of any insurer when contrary to public interest or when
the principal management personnel of which is found by him to be untrustworthy or not
of good character, or so lacking in insurance company managerial experience as to make
the proposed operation hazardous to the insurance-buying public or to its stockholders;
or which he has good reason to believe is affiliated directly or indirectly through
ownership, control, management, reinsurance transactions or other insurance or business
relations, with any person or persons whose business operations, to the detriment of
insureds, stockholders, or creditors are or have been marked by manipulation of assets,
accounts, or reinsurance or by bad faith.

[(2)](3) (a) Except as provided in paragraph (b) of this subsection, a domestic
insurance company may not move its home or executive office, except within the borders
of this State, without notice to and approval of the Commissioner.

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