PARRIS N. GLENDENING, Governor

Ch. 23

TRANSMITTED obtains a judgment against the licensee and the judgment remains
unsatisfied for more than 30 days after the licensee and surety are served with notice of
the entry of judgment, an action may be brought against the surety for the amount of the
judgment, but not exceeding the amount of the bond.

(4) The liability of a surety:

(i) Is not affected by the insolvency or bankruptcy of the licensee or
by any misrepresentation, breach of warranty, failure to pay a premium, or other act or
omission of the licensee; and

(ii) Continues[, if the licensee dies, dissolves, or liquidates,] as to all
transactions of THE LICENSEE OR an agent, FOR NO LONGER THAN 5 YEARS AFTER
THE LICENSEE CEASES, FOR ANY REASON, TO BE LICENSED [until the earlier ,of 60
days after the death, dissolution, or liquidation or 60 days after the termination of the
bond]. HOWEVER, THE COMMISSIONER MAY PERMIT THE SURETY BOND TO BE
REDUCED OR ELIMINATED PRIOR TO THAT TIME IF THE AMOUNT OF THE
LICENSEE'S PAYMENT INSTRUMENTS OUTSTANDING IN THIS STATE ARE REDUCED.

(5) A licensee or surety may cancel a bond by giving the Commissioner
notice of the cancellation by certified mail, return receipt requested, bearing a postmark
from the United States Postal Service. However, the cancellation is not effective until 30
days after the Commissioner receives the notice.

(c) (1) Permissible investments deposited under this section shall:

(i) Have a market value equal to the amount required by subsection
(d) of this section; and

(ii) Be held by the Commissioner to secure the same obligations as are
required to be secured by a bond under subsection (b) of this section.

(2) At any time, a licensee may exchange deposited permissible investments
for other permissible investments that meet the requirements of this subsection.

(3) The Commissioner may sell or transfer deposited permissible
investments and dispose of their proceeds only on the order of a court of competent
jurisdiction.

(4) As long as a licensee is solvent, the licensee is entitled to receive any
interest or dividends earned by the deposited permissible investments.

(5) The Commissioner may place the deposited permissible investments in
the custody of any qualified trust company or national banking association in this State.
The licensee shall pay the compensation of this custodian.

(d) (1) The amount of the bond to be filed with the Commissioner or the fair
market value of the permissible investments to be deposited with the Commissioner shall
be in an amount of not less than $100,000 plus an additional amount of not less than
$10,000 for each agent of the licensee, but in no event shall the bond or fair market value
of permissible investments exceed $350,000, as set by the Commissioner.

(2) In setting the amount of the bond, the Commissioner shall consider:

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