PARRIS N. GLENDENING, Governor                                  Ch. 36

5-609. UNLAWFULLY ACQUIRED INVESTMENTS.

(A)     DISPOSAL REQUIRED.

EACH INSURER SHALL DISPOSE OF ANY INVESTMENTS ACQUIRED IN
VIOLATION OF THE LAW IN FORCE ON THE DATE OF ACQUISITION OF THE
INVESTMENT.

(B)     DEDUCTION OF INELIGIBLE INVESTMENT.

IN ANY DETERMINATION OF THE FINANCIAL CONDITION OF AN INSURER WITH
INVESTMENTS ACQUIRED IN VIOLATION OF THE LAW, THE AMOUNT OF THE VALUE
OF INVESTMENTS, IF WHOLLY INELIGIBLE, OR THE AMOUNT OF THE VALUE OF THE
INVESTMENTS IN EXCESS OF ANY LIMITATION PRESCRIBED BY THIS SUBTITLE,
SHALL BE DEDUCTED AS A NONADMITTED ASSET OF THE INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 107.

Defined term: "Insurer" § 1-101

SUBTITLE 7. ADMINISTRATION OF DEPOSITS.
5-701. DEPOSITS OF ASSETS.

(A)     IN GENERAL.

WHEN MADE THROUGH THE COMMISSIONER BY INSURERS OR HEALTH
MAINTENANCE ORGANIZATIONS, THE TREASURER SHALL ACCEPT AND HOLD IN
TRUST:

(1)      DEPOSITS REQUIRED UNDER THIS ARTICLE FOR A CERTIFICATE OF
AUTHORITY TO ENGAGE IN THE INSURANCE BUSINESS IN THE STATE;

(2)      DEPOSITS REQUIRED UNDER § 19-710(D)(3) OF THE HEALTH -
GENERAL ARTICLE FOR A CERTIFICATE OF AUTHORITY TO OPERATE AS A HEALTH
MAINTENANCE ORGANIZATION;

(3)      DEPOSITS OF DOMESTIC INSURERS, FOREIGN INSURERS, OR ALIEN
INSURERS REQUIRED UNDER THE LAWS OF ANOTHER STATE, PROVINCE, OR
COUNTRY AS A PREREQUISITE FOR AUTHORITY TO ENGAGE IN THE INSURANCE
BUSINESS IN THE OTHER STATE, PROVINCE, OR COUNTRY;

(4)      DEPOSITS ALLOWED UNDER § 5-704 OF THIS SUBTITLE; AND

(5)      DEPOSITS REQUIRED UNDER § X-XXX [ART. 48A, § 61] OF THIS
ARTICLE.

(B)     ASSETS ELIGIBLE FOR DEPOSIT.

DEPOSITS MADE UNDER SUBSECTION (A) OF THIS SECTION SHALL BE IN ANY
COMBINATION OF:

(1) CASH; OR

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