PARRIS N. GLENDENING, Governor

Ch. 36

The Insurance Article Review Committee also notes, for consideration by the
General Assembly, that in subsection (a)(2) of this section, the reference to an
"investment" in a savings and loan association or building and loan
association may be obsolete.

The Insurance Article Review Committee also notes, for consideration by the
General Assembly, that in subsection (a)(9) of this section, the meaning of the
reference to a "suspended" banking institution is not clear.

Defined terms: "Annuity" § 1-101
"Annuity contract" § 1-101
"Commissioner" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Life insurer" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Reinsurance" § 1-101

5-102. ASSETS NOT ADMITTED.

(A) IN GENERAL.

NOTWITHSTANDING § 5-101 OF THIS SUBTITLE, IN DETERMINING THE
FINANCIAL CONDITION OF AN INSURER, THE FOLLOWING EXPRESSLY ARE NOT
ALLOWED AS ADMITTED ASSETS:

(1)      GOOD WILL, ORGANIZATIONAL EXPENSES, TRADE NAMES, AND
OTHER SIMILAR INTANGIBLE ASSETS;

(2)      EXCEPT FOR POLICY LOANS, A SECURED OR UNSECURED ADVANCE
TO AN OFFICER OF THE INSURER;

(3)      AN ADVANCE GIVEN ONLY ON PERSONAL SECURITY TO AN
EMPLOYEE OR AGENT OF THE INSURER OR TO ANOTHER PERSON;

(4)      STOCK OF THE INSURER OWNED BY IT, ANY MATERIAL INTEREST IN
THE STOCK OF THE INSURER, ANY LOAN THAT IS SECURED BY THE STOCK OF THE
INSURER, OR ANY MATERIAL PROPORTIONATE INTEREST IN THE STOCK OF THE
INSURER ACQUIRED OR HELD THROUGH THE INSURER'S OWNERSHIP OF AN
INTEREST IN ANOTHER FIRM, CORPORATION, OR BUSINESS UNIT;

(5)      EXCEPT FOR DATA PROCESSING AND ACCOUNTING SYSTEMS
ALLOWED AS ADMITTED ASSETS UNDER § 5-101(A)(10) OF THIS SUBTITLE, FIXTURES,
FURNITURE, FURNISHINGS, LIBRARIES, SAFES, STATIONERY, SUPPLIES, AND
VEHICLES; AND

(6)      THE AMOUNT, IF ANY, BY WHICH THE AGGREGATE BOOK VALUE OF
INVESTMENTS CARRIED IN THE LEDGER ASSETS OF THE INSURER EXCEEDS THE
AGGREGATE VALUE OF THOSE INVESTMENTS AS DETERMINED UNDER THIS
ARTICLE.

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