Ch. 36                                      1995 LAWS OF MARYLAND

"Marine insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Reinsurance" § 1-101
"Surety insurance" § 1-101

5-206. GUARANTY FUND OR UNEARNED PREMIUM RESERVES FOR TITLE
INSURANCE.

IN ADDITION TO ADEQUATE RESERVES REQUIRED BY § 5-201(B) OF THIS
SUBTITLE FOR OUTSTANDING LOSSES, A TITLE INSURER SHALL MAINTAIN A
GUARANTY FUND OR UNEARNED PREMIUM RESERVES OF AT LEAST AN AMOUNT
COMPUTED AS FOLLOWS:

(1)      10% OF THE TOTAL AMOUNT OF THE RISK PREMIUMS WRITTEN IN
THE CALENDAR YEAR FOR TITLE INSURANCE CONTRACTS SHALL BE AS ASSIGNED
ORIGINALLY TO THE RESERVES; AND

(2)     THE RESERVES APPLICABLE TO A CONTRACT SHALL BE REDUCED
BY 5% OF THE ORIGINAL AMOUNT OF THE RESERVES DURING EACH OF THE 20
YEARS THAT FOLLOW THE YEAR IN WHICH THE CONTRACT IS ISSUED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 81.

Defined terms: "Insurer" § 1-101
"Premium" § 1-101
"Title insurance" § 1-101

SUBTITLE 3. STANDARD VALUATION LAW.

5-301. VALUATION OF RESERVES REQUIRED.

(A) IN GENERAL.

(1) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE
commissioner annually shall value or cause to be valued the reserves
for all Outstanding life insurance policies, annuity contracts, and
pure endowment contracts of each life insurer doing business in the

STATE.

(II) FOR AN ALIEN INSURER, THE VALUATION REQUIRED BY THIS
SECTION SHALL BE LIMITED TO THE ALIEN INSURER'S UNITED STATES BUSINESS.

(2) THE COMMISSIONER MAY CERTIFY THE AMOUNT OF RESERVES
VALUED UNDER THIS SECTION, SPECIFYING THE MORTALITY TABLES. RATES OF
INTEREST, AND METHODS USED TO CALCULATE THE RESERVES.

(B) GROUP METHODS AND APPROXIMATE AVERAGES.

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