PARRIS N. GLENDENING, Governor                               Ch. 36

In subsection (a)(3) of this section, the former reference to a "proper" order
of a court is deleted as implicit in the reference to an "order of a court of
competent jurisdiction".

In subsection (b) of this section, the introductory clause, "[e]xcept for a
release made under subsection (a)(3) of this section", is added to reflect that
a release made under court order does not also require the Commissioner's
order.

Also in subsection (b) of this section, the reference to deposited "cash or
government securities" is substituted for the former reference to deposited
"funds or assets" for clarity and consistency throughout this subtitle.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101
"Reinsurance" § 1-101

5-709. TRANSFER OR RELEASE OF DEPOSITS IN MERGER OR CONSOLIDATION.

(A)     IN GENERAL.

ON COMPLETION OF A MERGER OR CONSOLIDATION, AN INSURER THAT
MERGES OR CONSOLIDATES WITH ANOTHER INSURER MAY:

(1)     TRANSFER TO THE SUCCESSOR INSURER ANY DEPOSIT MADE BY
THE MERGED OR CONSOLIDATED INSURER UNDER THIS SUBTITLE; OR

(2)     HAVE RELEASED TO THE SUCCESSOR INSURER ALL OR PART OF A
DEPOSIT MADE BY THE MERGED OR CONSOLIDATED INSURER UNDER THIS
SUBTITLE THAT IS NO LONGER REQUIRED OF THE SUCCESSOR INSURER UNDER
THIS ARTICLE.

(B)     REQUIREMENTS.

A TRANSFER OR RELEASE OF A DEPOSIT UNDER THIS SECTION MAY BE MADE
ONLY:

(1)     WITH THE APPROVAL OF THE COMMISSIONER; AND

(2)      ON AFFIDAVIT OF THE OFFICERS OF THE MERGED OR
CONSOLIDATED INSURER AND THE SUCCESSOR INSURER THAT THE LIABILITIES OF
THE MERGED OR CONSOLIDATED INSURER HAVE BEEN EXTINGUISHED, CANCELED,
OR REINSURED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 117.

In the introductory language of subsection (a) of this section, the reference to
an insurer "that merges or consolidates" is substituted for the former
reference to an insurer "which has heretofore merged or consolidated or
which may hereafter do so", for brevity.

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