Ch. 36

1995 LAWS OF MARYLAND

(1)     THE CASH OR GOVERNMENT SECURITIES DEPOSITED BY THE
INSURER AND HELD ON DEPOSIT UNDER THIS SUBTITLE BECOME INELIGIBLE FOR
DEPOSIT UNDER § 5-701(B) OF THIS SUBTITLE; OR

(2)     THE MARKET VALUE OF THE DEPOSITED CASH AND GOVERNMENT
SECURITIES FALLS BELOW THE AMOUNT REQUIRED UNDER THIS ARTICLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 115.

Throughout this section, the references to "cash" are substituted for the
former references to "assets" and the references to "government securities"
are substituted for the former references to "securities" for clarity and
consistency throughout this subtitle.

Also throughout this section, the references to "§ 5-701(b)" of this subtitle are
added for clarity.

In item (1) of this section, the reference to cash or government securities held
on deposit "under this subtitle" is added for clarity. Correspondingly, the
former reference to assets and securities held on deposit "in this State" is
deleted as unnecessary since all deposits held "under this subtitle" are held in
this State under §§ 5-701 and 5-702.

Defined term: "Insurer" § 1-101

5-706. LEVY ON DEPOSITS BY JUDGMENT CREDITORS.

(A)     PROHIBITED.

A JUDGMENT CREDITOR OR OTHER CLAIMANT OF AN INSURER MAY NOT LEVY
ON ANY OF THE CASH OR GOVERNMENT SECURITIES HELD ON DEPOSIT UNDER THIS
SUBTITLE FOR THE PROTECTION OF THE INSURER'S POLICYHOLDERS AND
CREDITORS.

(B)     ALLOWED.

A JUDGMENT CREDITOR OR OTHER CLAIMANT OF AN INSURER MAY LEVY ON
A DEPOSIT REQUIRED UNDER § X-XXX [ART. 48A, § 61] OF THIS ARTICLE IF ALLOWED
BY THE NOTICE OF THE COMMISSIONER REQUIRING THE DEPOSIT TO BE MADE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 114.

In subsection (a) of this section, the reference to "cash" is substituted for the
former reference to "assets" and the reference to "government securities" is
substituted for the former reference to "securities" for clarity and consistency
throughout this subtitle.

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