Ch. 36

1995 LAWS OF MARYLAND

(I)       THE NET PRESENT VALUE OF ALL OUTSTANDING POLICIES IN
FORCE, LESS REINSURANCE;

(II)     RESERVES FOR ACCIDENTAL DEATH BENEFITS AND TOTAL
AND PERMANENT DISABILITY BENEFITS, LESS REINSURANCE;

(III)   THE PRESENT VALUE OF SUPPLEMENTARY CONTRACTS,
INCLUDING DIVIDENDS LEFT WITH THE LIFE INSURER TO ACCUMULATE AT
INTEREST;

(IV)    LIABILITIES ON CANCELED POLICIES THAT' ARE NOT
INCLUDED IN NET RESERVE AND ON WHICH A SURRENDER VALUE MAY BE
DEMANDED, AND OUTSTANDING POLICY CLAIMS AND LOSSES; AND

(V)     ANY ADDITIONAL RESERVES THAT THE COMMISSIONER
REASONABLY REQUIRES FOR THE LIFE INSURANCE.

(C)     CASH AND DEPOSITS.

THE RESERVE INVESTMENTS OF A LIFE INSURER MAY INCLUDE:

(1)      CASH OR DEPOSITS IN CHECKING OR SAVINGS ACCOUNTS, UNDER
CERTIFICATES OF DEPOSIT, OR IN ANY OTHER FORM IN A NATIONAL OR STATE
BANK OR TRUST COMPANY; OR

(2)      SHARES OR DEPOSITS IN A SAVINGS AND LOAN ASSOCIATION OR
BUILDING AND LOAN ASSOCIATION TO THE EXTENT THAT THE INVESTMENT OR
ACCOUNT IS INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION.

(D)     INTEREST BEARING BONDS AND OTHER OBLIGATIONS.

(1) THE RESERVE INVESTMENTS OF A LIFE INSURER MAY INCLUDE:

(I)       INTEREST BEARING BONDS, NOTES, CERTIFICATES OF
INDEBTEDNESS, BILLS, OR OTHER DIRECT INTEREST BEARING OBLIGATIONS OF THE
UNITED STATES OR CANADA OR OTHER INTEREST BEARING OBLIGATIONS FULLY
GUARANTEED BOTH AS TO PRINCIPAL AND INTEREST BY THE UNITED STATES OR
CANADA;

(II)     INTEREST BEARING BONDS OF A STATE, A PROVINCE OF
CANADA, A COUNTY OR INCORPORATED CITY OF A STATE, OR A MUNICIPALITY OF
CANADA;

(III)    INTEREST BEARING BONDS OF A COMMISSION,
INSTRUMENTALITY, AUTHORITY, OR POLITICAL SUBDIVISION WITH LEGAL
AUTHORITY TO ISSUE INTEREST BEARING BONDS, OF THE UNITED STATES, CANADA,
A STATE, A PROVINCE OF CANADA, A COUNTY OR INCORPORATED CITY OF A STATE,
OR A MUNICIPALITY OF CANADA;

(IV)    INTEREST BEARING BONDS, NOTES, OR OTHER INTEREST
BEARING OBLIGATIONS OF A CORPORATION INCORPORATED UNDER THE LAWS OF
THE UNITED STATES, CANADA, A STATE, OR A PROVINCE OF CANADA; OR

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