Ch. 36

1995 LAWS OF MARYLAND

(II) EXCEED THE AMOUNT REQUIRED FOR RESERVES AND ALL
OTHER LIABILITIES BY AT LEAST $125,000.

(2) FOR PURPOSES OF PARAGRAPH (1) OF THIS SUBSECTION, ASSETS
INCLUDE BORROWED SURPLUS UNDER § 3-116 OF THIS SUBTITLE, BUT EXCLUDE
BORROWED MONEY OR OTHER BORROWED ASSETS.

(F)      SAME — TWO OR MORE KINDS OF INSURANCE.

TO QUALIFY FOR AUTHORITY TO ENGAGE IN TWO OR MORE KINDS OF
INSURANCE BUSINESS ALLOWED TO BE WRITTEN ON AN ASSESSABLE BASIS UNDER
THIS ARTICLE, A MUTUAL INSURER MUST HAVE ASSETS THAT:

(1)      EQUAL AT LEAST $500,000; AND

(2)      EXCEED THE AMOUNT REQUIRED FOR RESERVES AND ALL OTHER
LIABILITIES BY AT LEAST $250,000.

(G)     DOMESTIC MUTUAL INSURERS LICENSED FOR PROPERTY AND CASUALTY
INSURANCE.

(1)      THIS SUBSECTION APPLIES ONLY TO A DOMESTIC MUTUAL INSURER
THAT:

(I)       IS LICENSED ONLY FOR PROPERTY INSURANCE AND
CASUALTY INSURANCE, OTHER THAN MOTOR VEHICLE PHYSICAL DAMAGE
INSURANCE, MOTOR VEHICLE LIABILITY INSURANCE, OR WORKERS'
COMPENSATION INSURANCE; AND

(II)     WRITES ASSESSABLE POLICIES.

(2)      NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, A
DOMESTIC MUTUAL INSURER DESCRIBED BY PARAGRAPH (1) OF THIS SUBSECTION
NEED NOT HAVE ASSETS OR SURPLUS EXCEEDING THE AMOUNT THAT THE MUTUAL
INSURER WOULD BE REQUIRED TO HAVE IF IT WROTE ONLY ONE KIND OF
INSURANCE, IF THE MUTUAL INSURER:

(I)       RESTRICTS ITS OPERATIONS TO THE COUNTY WHERE ITS
PRINCIPAL OFFICE IS LOCATED AND TO THE COUNTIES OF THE STATE THAT ARE
IMMEDIATELY ADJACENT TO THAT COUNTY;

(II)     IS NOT LICENSED TO ENGAGE IN THE INSURANCE BUSINESS IN
ANOTHER STATE;

(III)    HAS BEEN IN EXISTENCE FOR AT LEAST 20 YEARS BEFORE
JULY 1, 1968; AND

(IV)    MAINTAINS AN AUTOMATIC REINSURANCE TREATY, FILED
WITH AND APPROVED BY THE COMMISSIONER, THAT REINSURES LIABILITY
COVERAGES ISSUED BY THE MUTUAL INSURER IN EXCESS OF A NET AMOUNT OF
RETENTION THAT IS SATISFACTORY TO THE COMMISSIONER.

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