PARRIS N. GLENDENING, Governor

Ch. 36

Also in subsection (a) of this section, the former reference to the insurer's
"principal" deposit is deleted as unnecessary in light of the reference to its
"largest" deposit.

In the introductory language of subsection (b) of this section, the reference to
a "life" insurer is added for clarity. Similarly, in subsections (b)(2) and (c)(2)
of this section, the references to domestic "life" insurers are added for clarity.

In the introductory language of subsection (c)(2) of this section, the reference
to the power of the Commissioner to "deny" a certificate of authority is
substituted for the former reference to the power to "refuse to grant" a
certificate of authority to conform to language used in other revised articles of
the Code.

Defined terms: "Alien insurer" § 1-101
"Certificate of authority" § 1-101
"Commissioner" § 1-101
"Domestic insurer" § 1-101
"Foreign insurer" § 1-101
"Insurance business" § 1-101
"Insurer" § 1-101
"Life insurer" § 1-101
"Person" § 1-101
"State" § 1-101

5-503. DATE OF ELIGIBILITY OF INVESTMENT.

(A)     IN GENERAL.

THE ELIGIBILITY OF AN INVESTMENT SHALL BE DETERMINED AS OF THE DATE
OF THE MAKING OR ACQUISITION OF THE INVESTMENT.

(B)     INVESTMENT LIMITATIONS.

AN INVESTMENT LIMITATION THAT IS BASED ON THE AMOUNT OF ASSETS OR
PARTICULAR FUNDS OF A LIFE INSURER SHALL RELATE TO THOSE ASSETS OR
FUNDS AS SHOWN BY:

(1)     THE ANNUAL STATEMENT OF THE LIFE INSURER AS OF THE
DECEMBER 31 IMMEDIATELY PRECEDING THE DATE OF ACQUISITION OF THE
INVESTMENT BY THE LIFE INSURER; OR

(2)     A CURRENT FINANCIAL STATEMENT OF THE LIFE INSURER THAT
REFLECTS THE RESULT OF MERGER OR CONSOLIDATION WITH ANOTHER INSURER,
BULK REINSURANCE, OR CHANGE IN CAPITALIZATION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 88(3) and the first clause of (2).

In subsection (b) of this section, the references to a "life" insurer are added to
clarify that this subtitle applies to life insurers.

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