PARRIS N. GLENDENING, Governor                                  Ch. 36

In subsection (c)(1)(ii) of this section, the references to "writ[ing]" vehicle
liability insurance and other kinds of insurance are substituted for the former
references to being "licensed for the sale of" those kinds of insurance for
clarity.

Defined terms: "Certificate of authority" § 1-101
"Insurance" § 1-101
"Insurance business" § 1-101
"Insurer" § 1-101

4-106. DEPOSIT OF SECURITIES.

(A)     IN GENERAL.

EXCEPT AS PROVIDED IN SUBSECTIONS (B) AND (C) OF THIS SECTION, TO
QUALIFY FOR A CERTIFICATE OF AUTHORITY, AN INSURER SHALL DEPOSIT AND
MAINTAIN IN TRUST WITH THE TREASURER, FOR THE PROTECTION OF THE
INSURER'S POLICYHOLDERS AND CREDITORS, AN AMOUNT NOT LESS THAN $100,000
IN:

(1)      CASH; OR

(2)      GOVERNMENT SECURITIES ELIGIBLE FOR THE INVESTMENT OF
CAPITAL FUNDS OF DOMESTIC INSURERS AS SPECIFIED IN § 5-701(B) OF THIS
ARTICLE.

(B)     FOREIGN INSURERS.

FOR A FOREIGN INSURER, INSTEAD OF ALL OR PART OF THE DEPOSIT
REQUIRED BY SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER SHALL
ACCEPT THE CURRENT CERTIFICATE OF THE INSURANCE SUPERVISORY OFFICIAL
OF ANOTHER STATE SHOWING THAT A LIKE DEPOSIT BY THE FOREIGN INSURER IS
BEING MAINTAINED:

(1)      IN PUBLIC CUSTODY OR IN A DEPOSITORY APPROVED BY THE
OFFICIAL; AND

(2)      IN TRUST FOR PROTECTION OF THE POLICYHOLDERS AND
CREDITORS OF THE FOREIGN INSURER IN THE UNITED STATES.

(C)     ALIEN INSURERS.

FOR AN ALIEN INSURER, INSTEAD OF ALL OR PART OF THE DEPOSIT
REQUIRED BY SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER SHALL
ACCEPT EVIDENCE SATISFACTORY TO THE COMMISSIONER THAT THE ALIEN
INSURER MAINTAINS IN THE UNITED STATES ASSETS AVAILABLE FOR DISCHARGE
OF ITS INSURANCE OBLIGATIONS IN THE UNITED STATES:

(1) IN PUBLIC DEPOSITORIES, OR IN TRUST INSTITUTIONS IN THE
UNITED STATES APPROVED BY THE COMMISSIONER; AND

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