Ch. 36

1995 LAWS OF MARYLAND

(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 SHALL BE HELD FOR THE PROTECTION OF THE
HEALTH MAINTENANCE ORGANIZATION'S MEMBERS AND CREDITORS;

(3)     DEPOSITS OF DOMESTIC 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 SHALL BE HELD FOR THE PROTECTION OF THE INSURER'S
POLICYHOLDERS AND CREDITORS OR FOR ANY OTHER PURPOSE SPECIFIED IN THE
LAWS REQUIRING THE DEPOSITS TO BE MADE;

(4)      DEPOSITS ALLOWED UNDER § 5-704 OF THIS SUBTITLE SHALL BE
HELD FOR THE PROTECTION OF THE INSURER'S POLICYHOLDERS AND CREDITORS;
AND

(5)     DEPOSITS REQUIRED UNDER § X-XXX [ART. 48A, § 61] OF THIS
ARTICLE SHALL BE HELD FOR THE PURPOSES SPECIFIED IN THE NOTICE OF THE
COMMISSIONER REQUIRING THE DEPOSITS TO BE MADE.

REVISOR'S NOTE: This section is new language that, in part, is derived without
substantive change from former Art. 48A, § 109, the second clause of the
introductory language of § 50, and the second clause of the first sentence of §
113 and, in part, repeats the provisions of present HG § 19-710(d)(3)(i).

In the introductory language of this section, the reference to "[d]eposits made
under this subtitle" is substituted for the former reference to "[s]uch deposits"
for clarity.

In item (1) of this section, the reference to deposits required "for a certificate
of authority to engage in the insurance business in the State" is added for
clarity and to conform to language used in § 5-701(a)(1) of this subtitle.

Also in item (1) of this section, the phrase "for the protection of the insurer's
policyholders and creditors" is substituted for the former phrase "for the
purpose stated in said section" for clarity.

Item (3) of this section is revised to clarify that deposits under this item are
those required as a prerequisite for authority to engage in the insurance
business in another state, province, or country. See also § 5-701(a)(3) of this
subtitle.

Also in item (3) of this section, the former reference to the protection of an
insurer's "policyholders" is deleted as unnecessary in light of the reference to
the protection of the insurer's "policyholders and creditors" and to conform to
items (1) and (4) of this section..

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