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Session Laws, 1995
Volume 793, Page 962   View pdf image
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Ch. 36

1995 LAWS OF MARYLAND

(1)     AN INSURER MAY NOT DIRECTLY OR INDIRECTLY INVEST IN OR
LEND ITS FUNDS ON SECURITY OF STOCKS, SHARES, BONDS, OR OBLIGATIONS OF A
PERSON OR GOVERNMENTAL OR BUSINESS UNIT OF OR IN A FOREIGN COUNTRY OR
SUBDIVISION OF A FOREIGN COUNTRY, UNLESS THE FOREIGN INVESTMENTS
CONFORM SUBSTANTIALLY WITH THE LIMITATIONS IMPOSED BY THIS SECTION ON
LIKE DOMESTIC INVESTMENTS.

(2)     THE AGGREGATE AMOUNT OF FOREIGN INVESTMENTS HELD BY AN
INSURER UNDER PARAGRAPH (1) OF THIS SUBSECTION AND UNDER § 5-608(O) AND
(P) OF THIS SUBTITLE MAY NOT EXCEED THE GREATER OF:

(I)      10% OF THE INSURER'S TOTAL ADMITTED ASSETS;

(II)     ONE AND ONE-HALF TIMES THE AMOUNT OF THE INSURER'S
RESERVES AND OTHER OBLIGATIONS UNDER THE INSURANCE CONTRACTS OR
REINSURANCE CONTRACTS IN THAT COUNTRY; AND

(III)   THE AMOUNT NECESSARY TO ENABLE THE INSURER TO
TRANSACT INSURANCE BUSINESS IN THE FOREIGN COUNTRY, DIRECTLY OR
THROUGH A SUBSIDIARY CORPORATION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 106.

In subsection (a)(3) of this section, the former specific reference to the
"investing" insurer is deleted as surplusage.

In subsection (c)(2)(ii) of this section, the reference to the "insurance
contracts or reinsurance" contracts "in that country" is added for clarity.

Defined terms: "Commissioner" § 1-101
"Insurance" § 1-101
"Insurance business" § 1-101
"Insurance contract" § 1-101
"Insurer" § 1-101
"Person" § 1-101
"Premium" § 1-101
"Reinsurance" § 1-101

5-606. LIMITATION ON AMOUNT OF INVESTMENTS.

(A) INVESTMENT IN ONE PERSON.

(1)      EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS SUBTITLE,
AN INSURER MAY NOT HAVE MORE THAN 10% OF ITS TOTAL ADMITTED ASSETS
INVESTED IN OR LENT ON THE SECURITIES OF ONE PERSON.

(2)     PARAGRAPH (1) OF THIS SUBSECTION DOES NOT APPLY TO:

(I) THE CLASSES OF GOVERNMENTAL OBLIGATIONS ELIGIBLE
FOR MINIMUM CAPITAL INVESTMENTS OF THE INSURER, INCLUDING THOSE
OBLIGATIONS ELIGIBLE UNDER § 5-608(L) OF THIS SUBTITLE; OR

- 962 -

 

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Session Laws, 1995
Volume 793, Page 962   View pdf image
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