Ch. 421

1995 LAWS OF MARYLAND

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, financial guaranty reinsurance companies, and financial guaranty
insurance 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) (A) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B) "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.

(C) "FINANCIAL GUARANTY INSURANCE COMPANY" MEANS AN INSURER:

(I) THAT DERIVES AT LEAST 90 PERCENT OF ITS GROSS WRITTEN
, PREMIUM FROM THE BUSINESS OF FINANCIAL GUARANTY INSURANCE; AND

(II) THE CLAIMS-PAYING ABILITY OF WHICH IS RATED IN THE
HIGHEST POSSIBLE CATEGORY BY AT LEAST ONE NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATION.

[(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,

- 2574 -