PARRIS N. GLENDENING, Governor                                   Ch. 36

5-103. LIABILITIES.

IN DETERMINING THE FINANCIAL CONDITION OF AN INSURER, CAPITAL STOCK
AND LIABILITIES TO BE CHARGED AGAINST THE INSURER'S ASSETS INCLUDE:

(1)      THE AMOUNT OF ANY CAPITAL STOCK OUTSTANDING;

(2)      THE AMOUNT, ESTIMATED IN ACCORDANCE WITH THIS ARTICLE,
THAT IS NEEDED TO PAY:

(I)       ALL OF THE INSURER'S REPORTED OR UNREPORTED LOSSES
AND CLAIMS INCURRED ON OR BEFORE THE DATE OF THE ANNUAL STATEMENT
REQUIRED UNDER THIS ARTICLE; AND

(II)     THE EXPENSES OF ADJUSTMENT OR SETTLEMENT OF THOSE
LOSSES AND CLAIMS;

(3)      ANY ADDITIONAL RESERVES THAT THE COMMISSIONER
REASONABLY REQUIRES FOR A SPECIFIC KIND OF INSURANCE;

(4)      TAXES, EXPENSES, AND OTHER OBLIGATIONS THAT ARE DUE OR
ACCRUED AT THE DATE OF THE ANNUAL STATEMENT REQUIRED UNDER THIS
ARTICLE;

(5)      AS TO LIFE INSURANCE AND DISABILITY INSURANCE AND ANNUITY
CONTRACTS:

(I)       RESERVES ON LIFE INSURANCE POLICIES AND ANNUITY
CONTRACTS IN FORCE, VALUED ACCORDING TO THE TABLES OF MORTALITY, RATES
OF INTEREST, AND APPLICABLE METHODS ADOPTED UNDER THIS ARTICLE;

(II)     RESERVES FOR DISABILITY BENEFITS FOR ACTIVE AND
DISABLED LIVES;

(III)    RESERVES FOR ACCIDENTAL DEATH BENEFITS;

(IV)    RESERVES FOR ADDITIONAL BENEFITS THAT PROVIDE
LONG-TERM HOME HEALTH CARE AND LONG-TERM CARE IN A NURSING HOME OR
OTHER RELATED INSTITUTION; AND

(V)     ANY ADDITIONAL RESERVES THAT THE COMMISSIONER
REASONABLY REQUIRES; AND

(6)      AS TO INSURANCE OTHER THAN AS SPECIFIED IN ITEM (5) OF THIS
SECTION, THE AMOUNT OF RESERVES EQUAL TO THE UNEARNED PARTS OF THE
GROSS PREMIUMS CHARGED ON POLICIES IN FORCE, COMPUTED IN ACCORDANCE
WITH THIS ARTICLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 77(a).

In items (2)(i) and (4) of this section, the phrase "annual statement required
under this article" is added to clarify the former reference to "statement".

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