PARRIS N. GLENDENING, Governor                                   Ch. 36

TO CALCULATE RESERVES UNDER THIS SECTION, THE COMMISSIONER MAY
USE GROUP METHODS AND APPROXIMATE AVERAGES FOR FRACTIONS OF A YEAR
OR OTHERWISE.

(C)     FOREIGN AND ALIEN INSURERS.

FOR A FOREIGN INSURER OR ALIEN INSURER, INSTEAD OF THE VALUATION OF
RESERVES REQUIRED BY SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER
MAY ACCEPT A VALUATION MADE OR CAUSED TO BE MADE BY THE INSURANCE
SUPERVISORY OFFICIAL OF ANOTHER STATE OR OTHER JURISDICTION IF:

(1)      THE VALUATION COMPLIES WITH THE MINIMUM STANDARD UNDER
THIS SUBTITLE; AND

(2)      THE INSURANCE SUPERVISORY OFFICIAL OF THE OTHER STATE OR
OTHER JURISDICTION ACCEPTS AS SUFFICIENT AND VALID FOR ALL LEGAL
PURPOSES THE COMMISSIONER'S CERTIFICATE OF VALUATION IF THE
COMMISSIONER'S CERTIFICATE STATES THAT THE VALUATION IS MADE IN A
SPECIFIED MANNER BY WHICH THE AGGREGATE RESERVES ARE AT LEAST AS
LARGE AS IF THEY HAD BEEN COMPUTED AS PRESCRIBED BY THE LAW OF THAT
STATE OR JURISDICTION.

(D)     ADOPTION OF LOWER STANDARD AFTER ADOPTION OF HIGHER
STANDARD.

SUBJECT TO THE APPROVAL OF THE COMMISSIONER, AN INSURER THAT HAS
ADOPTED A STANDARD OF VALUATION PRODUCING GREATER AGGREGATE
RESERVES THAN THE AGGREGATE RESERVES CALCULATED UNDER THE MINIMUM
STANDARD PROVIDED IN THIS SUBTITLE MAY ADOPT A LOWER STANDARD OF
VALUATION IF IT IS NOT LOWER THAN THE MINIMUM STANDARD PROVIDED IN THIS
SUBTITLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 83(1).

In subsection (a)(1)(i) of this section, the former references to "reserve
liabilities" and "net value", which were listed as synonymous with the term
"reserves", are deleted. The term "reserves" is used consistently throughout
this subtitle.

In subsection (a)(2) of this section, the reference to the "net level premium
method or other" method is deleted as surplusage.

Defined terms: "Alien insurer" § 1-101
"Annuity contract" § 1-101
"Commissioner" § 1-101
"Foreign insurer" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Life insurer" § 1-101
"Policy" § 1-101
"State" § 1-101

- 911 -