Ch. 293

1997 LAWS OF MARYLAND

emergency measure; and generally relating to regulation of mutual insurers and
stock insurers.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 266(a) and 272(a)
Annotated Code of Maryland
(1994 Replacement Volume and 1996 Supplement)

BY adding to

Article 48A - Insurance Code
Section 493(d)

Annotated Code of Maryland

(1994 Replacement Volume and 1996 Supplement)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 3-116, 3-123(b), and 7-201
Annotated Code of Maryland
(1995 Volume and 1996 Supplement)

(As enacted by Chapter 36 of the Acts of the General Assembly of 1995)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

266.

(a) (1) Any director, officer or member of any stock [or mutual] insurer, or any
other person, may loan or advance to such insurer any sum or sums of money necessary to
enable it to comply with any surplus requirements, or any other requirements of the law,
and such moneys, and such interest thereon as may have been agreed upon, not exceeding
six percent per annum, shall be payable only out of the surplus remaining after providing
for all reserves and other liabilities, and such advance shall not otherwise be a liability or
claim against the insurer or any of its assets.

(2) ANY DIRECTOR, OFFICER OR MEMBER OF ANY MUTUAL INSURER,
OR ANY OTHER PERSON, MAY LOAN OR ADVANCE TO SUCH INSURER ANY SUM OR
SUMS OF MONEY NECESSARY TO ENABLE IT TO COMPLY WITH ANY SURPLUS
REQUIREMENTS, OR ANY OTHER REQUIREMENTS OF THE LAW, AND, SUBJECT TO
THE APPROVAL OF THE COMMISSIONER, SUCH MONEYS, AND SUCH INTEREST
THEREON AS MAY HAVE BEEN AGREED UPON SHALL BE PAYABLE ONLY OUT OF
THE INSURER'S REALIZED EARNED SURPLUS IN EXCESS OF ITS MINIMUM REQUIRED
SURPLUS, AND SUCH ADVANCE SHALL NOT OTHERWISE BE A LIABILITY OR CLAIM
AGAINST THE INSURER OR ANY OF ITS ASSETS.

(3) No commission or promotion expenses shall be paid in connection with
the advance of any such money to the insurer, and the amount of such advance THE

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