Ch. 36                                     1995 LAWS OF MARYLAND

5-708. RELEASE OF DEPOSITS.

(A)     IN GENERAL.

A DEPOSIT MADE BY AN INSURER UNDER THIS SUBTITLE SHALL BE RELEASED
AND RETURNED:

(1)     TO THE INSURER WHEN SUBSTANTIALLY ALL LIABILITY OF THE
INSURER THAT THE DEPOSIT SECURES IS EXTINGUISHED BY AUTHORIZED
REINSURANCE OR OTHERWISE;

(2)     TO THE INSURER, IF SOLVENT, TO THE EXTENT THAT THE DEPOSIT
EXCEEDS THE AMOUNT REQUIRED TO BE DEPOSITED UNDER THIS ARTICLE; OR

(3)      ON ORDER OF A COURT OF COMPETENT JURISDICTION, TO THE
RECEIVER, CONSERVATOR, REHABILITATOR, OR LIQUIDATOR OF THE INSURER, OR
TO ANY OTHER PROPERLY DESIGNATED OFFICIAL WHO SUCCEEDS TO THE
MANAGEMENT AND CONTROL OF THE INSURER'S ASSETS.

(B)     ON ORDER OF COMMISSIONER.

EXCEPT FOR A RELEASE MADE UNDER SUBSECTION (A)(3) OF THIS SECTION, A
RELEASE OF DEPOSITED CASH OR GOVERNMENT SECURITIES MAY BE MADE ONLY
ON APPLICATION TO AND WRITTEN ORDER OF THE COMMISSIONER.

(C)     LIABILITY OF COMMISSIONER.

IF THE RELEASE IS MADE IN GOOD FAITH, THE COMMISSIONER IS NOT
PERSONALLY LIABLE FOR THE RELEASE OF ANY DEPOSIT OR PART OF A DEPOSIT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 116 and 118.

In the introductory language of subsection (a) of this section, the phrase "by
an insurer" is added for clarity.

Also in the introductory language of subsection (a) of this section, the
reference to a deposit made "under this subtitle" is substituted for the former
broader reference to a deposit made "under this article" to reflect that the
provisions of this section govern only the deposits described in § 5-701(a). C.f.
§ 5-806 of this title, which governs withdrawals of deposits of trusteed assets.
Correspondingly, the former reference to a deposit made "in this State" is
deleted as unnecessary since all deposits "under this subtitle" are made in this
State under §§ 5-701 and 5-702.

In subsection (a)(2) of this section, the phrase "if solvent" is added to clarify
that an excess deposit may be released only to a solvent insurer. This addition
conforms to § 5-704(b)(1) of this subtitle, and to administrative practice.

Also in subsection (a)(2) of this section, the reference to the excess over the
amount required "to be deposited under this article" is added for clarity.

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