Ch. 36

1995 LAWS OF MARYLAND

THE DEPOSIT OF TRUSTEED ASSETS SHALL BE HELD FOR THE BENEFIT,
SECURITY, AND PROTECTION OF THE POLICYHOLDERS AND CREDITORS OF THE
ALIEN INSURER IN THE UNITED STATES.

(C)     AMOUNT.

THE DEPOSIT OF TRUSTEED ASSETS, TOGETHER WITH OTHER TRUST DEPOSITS
OF THE ALIEN INSURER HELD IN THE UNITED STATES FOR THE SAME PURPOSE, MAY
NOT BE LESS THAN THE DEPOSITS .REQUIRED OF AN ALIEN INSURER UNDER §
4-106(C) OF THIS ARTICLE.

(D)     CHARACTER.

THE DEPOSIT OF TRUSTEED ASSETS SHALL CONSIST OF CASH, SECURITIES OF
THE SAME CHARACTER AND DIVERSIFICATION AS THOSE. ELIGIBLE FOR
INVESTMENT OF THE FUNDS OF DOMESTIC INSURERS UNDER SUBTITLE 5 OR 6 OF
THIS TITLE, OR BOTH CASH AND SECURITIES.

(E)     DURATION.

THE DEPOSIT OF TRUSTEED ASSETS SHALL BE MAINTAINED AS LONG AS ANY
LIABILITY OF THE ALIEN INSURER ARISING OUT OF THE TRANSACTION OF ITS
INSURANCE BUSINESS IN THE UNITED STATES IS OUTSTANDING.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 121 and 120(1) and (2).                       

The Insurance Article Review Committee notes, for consideration by the
General Assembly, that the reference in subsection (a) of this section to a
"bank or trust company" may be too narrow. In practice, the Insurance
Administration approves deposits in any financial institution with a trust
department or other similar investment capacity.

In subsections (b), (c), and (e) of this section, the references to an "alien"
insurer are added to clarify that this subtitle relates to trusteed assets of alien
insurers.

In subsection (b) of this section, the extraneous reference to the
"policyholders" of the alien insurer is deleted to conform to language used in
Subtitle 7 of this title.

In subsection (e) of this section, the reference to liability arising out of "the
transaction of its insurance business" is substituted for the former reference to
liability arising out of "its insurance transactions" to use the defined term
"insurance business".

Defined terms: "Alien insurer" § 1-101
"Commissioner" § 1-101
"Domestic insurer" § 1-101
"Insurance business" § 1-101
"Trusteed assets" § 5-801

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