PARRIS N. GLENDENING, Governor

Ch. 36

5-804. TRUST AGREEMENT.

(A)     REQUIRED.

(1)      A DEPOSIT OF TRUSTEED ASSETS SHALL BE MADE UNDER A
WRITTEN TRUST AGREEMENT BETWEEN THE ALIEN INSURER AND THE TRUSTEE IN
ACCORDANCE WITH THIS SUBTITLE.

(2)      THE DEPOSIT OF TRUSTEED ASSETS SHALL BE AUTHENTICATED IN
THE MANNER APPROVED BY THE COMMISSIONER.

(B)     AUTHORITY TO EXECUTE.

WHETHER OR NOT THEN AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN
MARYLAND, AN ALIEN INSURER THAT USES OR PROPOSES TO USE MARYLAND AS A
STATE OF ENTRY TO TRANSACT INSURANCE BUSINESS IN THE UNITED STATES MAY
MAKE AND EXECUTE THE TRUST AGREEMENT REQUIRED BY THIS SUBTITLE.

(C)     APPROVAL BY COMMISSIONER.

(1)      THE TRUST AGREEMENT IS NOT EFFECTIVE UNTIL FILED WITH AND
APPROVED IN WRITING BY THE COMMISSIONER.

(2)      THE COMMISSIONER MAY NOT APPROVE A TRUST AGREEMENT IF
THE COMMISSIONER FINDS THAT THE TRUST AGREEMENT:

(I)       DOES NOT COMPLY WITH LAW; OR

(II)     HAS TERMS THAT DO NOT PROVIDE REASONABLY ADEQUATE
PROTECTION FOR THE ALIEN INSURER'S POLICYHOLDERS AND CREDITORS IN THE
UNITED STATES.

(D)     AMENDMENT AUTHORIZED.

(1)      A TRUST AGREEMENT MAY BE AMENDED.

(2)      THE AMENDMENT IS NOT EFFECTIVE UNTIL FILED WITH AND
APPROVED IN WRITING BY THE COMMISSIONER AS COMPLYING WITH THIS
SUBTITLE.

(E)     WITHDRAWAL OF APPROVAL.

(1)      THE COMMISSIONER MAY WITHDRAW APPROVAL OF A TRUST
AGREEMENT OR AMENDMENT TO A TRUST AGREEMENT IF THE COMMISSIONER
FINDS, AFTER A HEARING, THAT THE REQUIREMENTS UNDER THIS SUBTITLE FOR
APPROVAL OF THE TRUST AGREEMENT OR AMENDMENT ARE NO LONGER MET.

(2)      THE COMMISSIONER SHALL GIVE NOTICE OF THE HEARING
REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION TO THE ALIEN INSURER
AND THE TRUSTEE OF THE TRUST AGREEMENT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 122, 123, 124, and 125.

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