Ch. 36                                          1995 LAWS OF MARYLAND

AN INSURER SHALL MAINTAIN THE MINIMUM INVESTMENTS REQUIRED BY
SUBSECTION (A) OF THIS SECTION FREE AND CLEAR FROM ANY LIEN OR PLEDGE,
OTHER THAN AS IMPRESSED ON:

(1)      A DEPOSIT WITH ANY GOVERNMENT IN THE UNITED STATES; OR

(2)      TRUSTEED ASSETS HELD IN TRUST FOR THE SECURITY OF THE
INSURER'S POLICYHOLDERS AND CREDITORS.

(D)     ADDITIONAL INVESTMENT REQUIREMENTS.

(1)      AFTER SATISFYING THE MINIMUM INVESTMENT REQUIREMENTS OF
SUBSECTION (A) OF THIS SUBSECTION, AN INSURER SHALL INVEST, OR OTHERWISE
ACQUIRE OR LOAN ON, ADDITIONAL FUNDS TO BRING ITS INVESTMENTS UP TO AN
AMOUNT NOT LESS THAN 50% OF THE AGGREGATE AMOUNT OF ITS UNEARNED
PREMIUM AND LOSS RESERVES, IN CASH OR THE CLASSES OF RESERVE
INVESTMENTS AUTHORIZED UNDER § 5-608 OF THIS SUBTITLE.

(2)      AN INSURER SHALL MAINTAIN THE INVESTMENTS REQUIRED BY
THIS SUBSECTION FREE FROM ANY LIEN OR PLEDGE, OTHER THAN A DEPOSIT OF
SECURITIES, CASH, OR TRUSTEED ASSETS HELD BY A STATE FOR THE BENEFIT OR
PROTECTION OF ALL OR ANY CLASS OF THE POLICYHOLDERS AND CREDITORS OF
THE INSURER.

(3)      EXCEPT FOR REAL PROPERTY ACQUIRED UNDER § 5,-608(N) OF THIS
SUBTITLE, A SECURITY OR INVESTMENT IS NOT ELIGIBLE FOR ACQUISITION AS A
RESERVE INVESTMENT UNLESS:

(I)       THE SECURITY OR INVESTMENT IS INTEREST-BEARING,
INTEREST-ACCRUING, OR DIVIDEND OR INCOME-PAYING;

(II)     THE SECURITY OR INVESTMENT IS NOT THEN IN DEFAULT IN
ANY RESPECT; AND

(III)   THE INSURER IS ENTITLED TO THE INTEREST OR INCOME
ACCRUING ON THE SECURITY OR INVESTMENT.

(E)     OTHER INVESTMENTS.

AFTER SATISFYING THE MINIMUM INVESTMENT REQUIREMENTS OF THIS
SUBTITLE, AN INSURER MAY INVEST ANY PART OF THE REMAINDER OF THE
INSURER'S FUNDS IN, OR OTHERWISE ACQUIRE OR LOAN, ANY OF THE CLASSES OF
INVESTMENTS ELIGIBLE UNDER § 5-608 OF THIS SUBTITLE OR IN OTHER
INVESTMENTS THAT ARE NOT PROHIBITED BY THIS SUBTITLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 102, 103, and 105.

In subsection (a) of this section, the former word "only", which modified
securities of certain classes, is deleted as surplusage.

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