Ch. 36

1995 LAWS OF MARYLAND

(6)      BEFORE THE COMMISSIONER MAY REFUSE TO GRANT EXTENSIONS
UNDER PARAGRAPH (5) OF THIS SUBSECTION, AN APPRAISAL OF THE REAL ESTATE
SHALL BE OBTAINED. IF THE APPRAISAL SHOWS THAT THE APPRAISED VALUE OF
THE REAL ESTATE EQUALS OR EXCEEDS THE BOOK VALUE OF THE REAL ESTATE,
THE COMMISSIONER SHALL GRANT EXTENSIONS FOR PERIODS NOT EXCEEDING 5
YEARS EACH.

(7)      WITH THE WRITTEN APPROVAL OF THE COMMISSIONER, A LIFE
INSURER MAY ACQUIRE PROPERTY AS PARTIAL PAYMENT OF THE CONSIDERATION
FOR THE SALE OF REAL ESTATE OWNED BY THE LIFE INSURER IF THE
TRANSACTION CAUSES A NET REDUCTION IN THE INVESTMENT OF THE LIFE
INSURER IN REAL ESTATE.                                               

(8)      WITH THE APPROVAL OF THE COMMISSIONER, A LIFE INSURER MAY
ACQUIRE OTHER REAL ESTATE IF NECESSARY OR CONVENIENT TO ENHANCE THE
MARKET VALUE OF REAL ESTATE PREVIOUSLY ACQUIRED OR HELD BY THE LIFE
INSURER IN ACCORDANCE WITH THIS SUBSECTION.

(K) FIXED INCOME ON INVESTMENTS AND POLICY LOANS.

THE RESERVE INVESTMENTS OF A LIFE INSURER MAY INCLUDE INTEREST,
RENTS, OR OTHER FIXED INCOME DUE AND ACCRUED ON:

(1)      AN INVESTMENT AUTHORIZED UNDER SUBSECTIONS (C) THROUGH
(E) AND (G) THROUGH (J) OF THIS SECTION; OR

(2)      POLICY LOANS OF THE LIFE INSURER.

(L) FEE-SIMPLE OR IMPROVED LEASEHOLD REAL ESTATE.

(1)      THE REAL ESTATE AUTHORIZED BY THIS SUBSECTION TO BE HELD
AS A RESERVE INVESTMENT BY A LIFE INSURER DOES NOT INCLUDE PROPERTY TO
BE USED PRIMARILY FOR MINING, RECREATIONAL, AMUSEMENT, HOTEL, OR CLUB
PURPOSES.

(2)      SUBJECT TO PARAGRAPHS (3) THROUGH (6) OF THIS SUBSECTION,
THE RESERVE INVESTMENTS OF A LIFE INSURER MAY INCLUDE FEE-SIMPLE OR
IMPROVED LEASEHOLD REAL ESTATE OR INTERESTS IN LIMITED PARTNERSHIPS
FORMED FOR THE DEVELOPMENT OR OWNERSHIP OF FEE-SIMPLE OR IMPROVED
LEASEHOLD REAL ESTATE, IF ACQUIRED:

(I)       AS AN INVESTMENT FOR THE PRODUCTION OF INCOME; OR

(II)     TO BE IMPROVED OR DEVELOPED AS AN INVESTMENT FOR
THE PRODUCTION OF INCOME.

(3)      THE COST OF EACH PARCEL OF FEE-SIMPLE OR IMPROVED
LEASEHOLD REAL ESTATE OR EACH LIMITED PARTNERSHIP INTEREST ACQUIRED
UNDER THIS SUBSECTION, INCLUDING THE COST TO THE LIFE INSURER OF
IMPROVING OR DEVELOPING THE REAL ESTATE, MAY NOT EXCEED:

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