PARRIS N. GLENDENING, Governor

Ch. 36

The second sentence of former Art. 48A, § 209(c), which defined "premium"
to include any consideration for insurance, is deleted as unnecessary in light of
§ 1-101 of this article to the same effect.

Defined terms: "Commissioner" § 1-101
"Insurance" § 1-101
"Insurance contract" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"State" § 1-101

"Unauthorized insurer" § 1-101
"Wet marine and transportation insurance" § 1-101

4-212. PENALTY.

AN UNAUTHORIZED INSURER OR PERSON THAT VIOLATES THIS SUBTITLE IS
SUBJECT TO A CIVIL PENALTY OF NOT LESS THAN $100 BUT NOT EXCEEDING $50,000
FOR EACH VIOLATION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 210.

The reference to a "civil penalty" is substituted for the former reference to a
"fin[e]" for clarity and to conform to language used throughout this article.

Defined terms: "Person" § 1-101
"Unauthorized insurer" § 1-101

TITLE 5. ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS.

SUBTITLE 1. ASSETS AND LIABILITIES.

5-101. ADMITTED ASSETS.

(A) IN GENERAL.

IN DETERMINING THE FINANCIAL CONDITION OF AN INSURER, THE
FOLLOWING ASSETS THAT THE INSURER OWNS SHALL BE ALLOWED AS ADMITTED
ASSETS:

(1)      CASH THAT THE INSURER HOLDS OR THAT IT CONTROLS WHILE THE
CASH IS IN TRANSIT, AND THE TRUE BALANCE OF ANY DEPOSIT IN A SOLVENT BANK
OR TRUST COMPANY;

(2)      SHARES OR DEPOSITS IN A SAVINGS AND LOAN ASSOCIATION OR
BUILDING AND LOAN ASSOCIATION, TO THE EXTENT THAT THE INVESTMENT OR
ACCOUNT IS INSURED BY AN INSTRUMENTALITY OF THE UNITED STATES OR OF
CANADA;

(3)      IN AN AMOUNT NOT EXCEEDING THE LEGAL RESERVE AND OTHER
POLICY LIABILITIES CARRIED ON EACH INDIVIDUAL POLICY:

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