Ch. 11

1996 LAWS OF MARYLAND

(6)      WHETHER IN THE LAST 12-MONTH PERIOD OR ANY SHORTER
PERIOD, THE AUTHORIZED INSURER'S OPERATING LOSS, CALCULATED TO INCLUDE
NET CAPITAL GAIN OR LOSS, CHANGE IN NON-ADMITTED ASSETS, AND CASH
DIVIDENDS PAID TO STOCKHOLDERS, IS GREATER THAN 50% OF THAT PART OF THE
AUTHORIZED INSURER'S POLICYHOLDER SURPLUS THAT IS IN EXCESS OF THE
MINIMUM REQUIRED SURPLUS;

(7)      WHETHER AN AFFILIATE, SUBSIDIARY, OR' REINSURER IS
INSOLVENT, THREATENED WITH INSOLVENCY, OR DELINQUENT IN THE PAYMENT
OF A MONETARY OR OTHER OBLIGATION;                   

(8)      CONTINGENT LIABILITIES, PLEDGES, OR GUARANTEES THAT,
EITHER INDIVIDUALLY OR COLLECTIVELY, INVOLVE A TOTAL AMOUNT THAT THE
COMMISSIONER BELIEVES. MAY AFFECT THE SOLVENCY OF THE AUTHORIZED
INSURER;

(9)      WHETHER A CONTROLLING PERSON OF THE AUTHORIZED INSURER
IS DELINQUENT IN TRANSMISSION OR PAYMENT OF NET PREMIUMS TO THE
INSURER;                                                                                             

(10)    THE AGE AND COLLECTIBILITY OF RECEIVABLES;

(11)    WHETHER THE MANAGEMENT OF THE AUTHORIZED INSURER,
INCLUDING AN OFFICER, DIRECTOR, OR ANY OTHER PERSON THAT HAS DIRECT OR
INDIRECT CONTROL OVER OPERATION, FAILS TO POSSESS AND DEMONSTRATE THE
COMPETENCE, FITNESS, AND REPUTATION CONSIDERED NECESSARY TO SERVE THE
AUTHORIZED INSURER IN A POSITION OF CONTROL;

(12)    WHETHER THE MANAGEMENT OF THE AUTHORIZED INSURER HAS
FAILED TO RESPOND TO INQUIRIES ABOUT THE CONDITION OF THE AUTHORIZED
INSURER OR HAS RESPONDED TO AN INQUIRY WITH FALSE OR MISLEADING
INFORMATION;

(13)    WHETHER THE MANAGEMENT OF THE AUTHORIZED INSURER HAS:

(I)       FILED A FALSE OR MISLEADING SWORN FINANCIAL
STATEMENT;

(II)     RELEASED A FALSE OR MISLEADING FINANCIAL STATEMENT
TO A LENDING INSTITUTION OR THE GENERAL PUBLIC;

(III)    MADE A FALSE OR MISLEADING ENTRY IN THE BOOKS OF THE
AUTHORIZED INSURER; OR

(IV)    OMITTED AN ENTRY OF A MATERIAL AMOUNT IN THE BOOKS
OF THE AUTHORIZED INSURER;

(14)    WHETHER THE AUTHORIZED INSURER HAS GROWN SO RAPIDLY
THAT IT LACKS ADEQUATE FINANCIAL AND ADMINISTRATIVE CAPACITY TO MEET
ITS OBLIGATIONS IN A TIMELY MANNER; OR

(15)    WHETHER THE AUTHORIZED INSURER HAS EXPERIENCED OR WILL
EXPERIENCE IN THE FORESEEABLE FUTURE CASH FLOW OR LIQUIDITY PROBLEMS.

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