Ch. 36

1995 LAWS OF MARYLAND

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

SUBTITLE 2. RESERVES.

5-201. RESERVE REQUIREMENTS FOR LIFE INSURER, NONPROFIT HEALTH SERVICE
PLAN, AND FRATERNAL BENEFIT SOCIETY.

(A)     DEFINITIONS.

(1)      IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2)      "OPINION" MEANS AN OPINION ISSUED BY A QUALIFIED ACTUARY
AND DEVELOPED IN ACCORDANCE WITH THE STANDARDS OF PRACTICE OF THE
ACTUARIAL STANDARDS BOARD.

(3)      "QUALIFIED ACTUARY" MEANS A MEMBER IN GOOD STANDING OF
THE AMERICAN ACADEMY OF ACTUARIES WHO MEETS THE QUALIFICATION
STANDARDS OF THE ACADEMY FOR ISSUING AN OPINION REQUIRED BY THIS
SECTION.

(B)     REQUIRED MINIMUM AMOUNT FOR AGGREGATE RESERVES.

(1)      IN ADDITION TO THE REQUIREMENT OF PARAGRAPH (2) OF THIS
SUBSECTION, THE AGGREGATE RESERVES FOR ALL POLICIES, CONTRACTS, AND
BENEFIT AGREEMENTS OF A LIFE INSURER MAY NOT BE LESS THAN THE
AGGREGATE RESERVES COMPUTED UNDER SUBTITLE 3 OF THIS TITLE.

(2)      (I) THE AGGREGATE RESERVES FOR ALL POLICIES, CONTRACTS,
AND BENEFIT AGREEMENTS OF. A LIFE INSURER, NONPROFIT HEALTH SERVICE
PLAN, OR FRATERNAL BENEFIT SOCIETY MAY NOT BE LESS THAN THE AGGREGATE
RESERVES THAT A QUALIFIED ACTUARY DETERMINES TO BE NECESSARY UNDER
SUBSECTION (D) OF THIS SECTION.

(II) BY REGULATION, THE COMMISSIONER MAY PROVIDE FOR A
TRANSITION PERIOD TO ESTABLISH ANY HIGHER RESERVES REQUIRED BY THIS
PARAGRAPH.

(C)     ACTUARIAL OPINIONS — IN GENERAL.

EACH LIFE INSURER, NONPROFIT HEALTH SERVICE PLAN, AND FRATERNAL
BENEFIT SOCIETY THAT DOES BUSINESS IN THE STATE SHALL SUBMIT ANNUALLY
THE OPINION OF A QUALIFIED ACTUARY AS TO WHETHER THE RESERVES AND
RELATED ACTUARIAL ITEMS HELD IN SUPPORT OF THE LIFE INSURER'S POLICIES.
CONTRACTS, AND BENEFIT AGREEMENTS ARE:

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