PARRIS N. GLENDENING, Governor

Ch. 36

Defined terms: "Commissioner" § 1-101
"Life insurer" § 1-101
"Person" § 1-101
"Policy" § 1-101
"State" § 1-101

5-508. POLICY LOANS.

(A)     AUTHORIZED.

A LIFE INSURER MAY LEND TO ITS POLICYHOLDER ON THE POLICY AS
COLLATERAL SECURITY AN AMOUNT NOT EXCEEDING THE RESERVE ON THE
POLICY.

(B)     ELIGIBLE RESERVE INVESTMENT.

A POLICY LOAN IS AN ELIGIBLE RESERVE INVESTMENT OF A LIFE INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 93.

Defined terms: "Life insurer" § 1-101
"Policy" § 1-101

5-509. FOREIGN INVESTMENTS.

(A)     SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO CANADIAN SECURITIES AND INVESTMENTS
THAT ARE ELIGIBLE FOR INVESTMENT UNDER OTHER PROVISIONS OF THIS
SUBTITLE.

(B)     AUTHORIZED.

SUBJECT TO SUBSECTION (C) OF THIS SECTION, A LIFE INSURER THAT IS
AUTHORIZED TO DO BUSINESS IN A FOREIGN COUNTRY OR THAT HAS
OUTSTANDING INSURANCE CONTRACTS OR REINSURANCE CONTRACTS ON RISKS
LOCATED IN A FOREIGN COUNTRY MAY INVEST IN ASSETS, OR OTHERWISE
ACQUIRE A LOAN ON SECURITIES AND INVESTMENTS, IN THE FOREIGN COUNTRY
THAT ARE SUBSTANTIALLY OF THE SAME KIND, CLASS, AND QUALITY AS THOSE
ASSETS ELIGIBLE FOR INVESTMENT UNDER THIS SUBTITLE.

(C)     LIMITATION.

THE AGGREGATE AMOUNT OF THE INVESTMENTS MADE UNDER SUBSECTION
(B) OF THIS SECTION AND OF THE CURRENCY OF THE FOREIGN COUNTRY HELD BY
THE LIFE INSURER MAY NOT EXCEED 150% OF THE GREATER OF:

(1)      THE AMOUNT OF THE RESERVES OF THE LIFE INSURER AND OTHER
OBLIGATIONS UNDER ANY OUTSTANDING INSURANCE CONTRACTS OR
REINSURANCE CONTRACTS; AND

(2)      THE AMOUNT THAT THE LIFE INSURER IS REQUIRED BY LAW TO
INVEST IN THAT COUNTRY.

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