PARRIS N. GLENDENING, Governor

Ch. 11

(5) ALL OF THE BUSINESS WRITTEN ON A POLICY FORM.
(B) EXCEPTION.

(1)      THIS SECTION DOES NOT APPLY TO AN UNAUTHORIZED INSURER IF
THE UNAUTHORIZED INSURER:

(I)       FILES AN ANNUAL STATEMENT WITH THE COMMISSIONER IN
ACCORDANCE WITH § 4-116 OF THIS ARTICLE;

(II)     MAINTAINS RESERVES ON ITS LIFE INSURANCE AND HEALTH
INSURANCE BUSINESS IN ACCORDANCE WITH § 5-203 AND TITLE 5, SUBTITLE 3 OF
THIS ARTICLE;

(III)    MEETS THE REQUIREMENTS OF TITLE 5, SUBTITLES 1
THROUGH 5 OF THIS ARTICLE WITH REGARD TO THE VALUATION OF ITS ASSETS
AND LIABILITIES;

(IV)    ALLOWS EXAMINATION BY THE COMMISSIONER IN
ACCORDANCE WITH §§ 2-205 THROUGH 2-209 OF THIS ARTICLE; AND

(V)     HAS MAINTAINED ON ITS BEHALF SECURITY ON DEPOSIT WITH
THE COMMISSIONER EQUAL TO THE AMOUNT BY WHICH THE CAPITAL AND
SURPLUS REQUIRED OF AN AUTHORIZED INSURER UNDER §§ 4-104 AND 4-105 OF
THIS ARTICLE EXCEEDS THE ACTUAL CAPITAL AND SURPLUS OF THE
UNAUTHORIZED INSURER.

(2)      THE SECURITY REQUIRED UNDER PARAGRAPH (1)(V) OF THIS
SUBSECTION MAY CONSIST OF:

(I)       CASH;

(II)     AN IRREVOCABLE LETTER OF CREDIT ISSUED BY A BANK
DOMICILED IN THE STATE THAT MAY BE TERMINATED ONLY AFTER 30 DAYS'
WRITTEN NOTICE BY CERTIFIED MAIL TO THE COMMISSIONER;

(III)    OBLIGATIONS, VALUED AT THE LOWER OF MARKET VALUE OR
PAR VALUE, THAT ARE GENERAL OBLIGATIONS OF, OR OBLIGATIONS GUARANTEED
BY, THE FEDERAL GOVERNMENT, THE STATE, OR A POLITICAL SUBDIVISION OF THE
STATE; OR

(IV)    ANY OTHER TYPE OF SECURITY THAT WOULD BE ACCEPTABLE
TO THE COMMISSIONER IF POSTED BY A DOMESTIC INSURER OR FOREIGN INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 436P.

In subsection (a) of this section, the former reference to the issuance of
certain coverage by insurers "[a]fter July 1, 1980" is deleted as obsolete.

Defined terms: "Agent" § 1-101
"Authorized insurer" § 1-101
"Commissioner" § 1-101

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