PARRIS N. GLENDENING, Governor

Ch. 35

(1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) (I) "ASSETS" MEANS ASSETS THAT ARE:

1. AUTHORIZED UNDER § 14-120 OF THIS SUBTITLE; AND

2. DETERMINED BY THE COMMISSIONER TO BE ADMITTED
ASSETS UNDER THE GUIDELINES ISSUED BY THE NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS.

(II) "ASSETS" DOES NOT INCLUDE:

1. CASH, NOTES, OR RECEIVABLES THAT RESULT FROM THE
SALE OF AN ASSET OF A NONPROFIT HEALTH SERVICE PLAN OR ITS AFFILIATE OR
SUBSIDIARY IF THE PURCHASER MAY REQUIRE THE PLAN TO REPURCHASE THE
ASSET; OR

2. STOCK OF AN AFFILIATE OR SUBSIDIARY OF THE PLAN IF
THE STOCK HAS NOT BEEN ISSUED IN ACCORDANCE WITH A PUBLIC OFFERING OR IS
NOT PUBLICLY TRADED ON A RECOGNIZED STOCK EXCHANGE.

(III) NOTWITHSTANDING SUBPARAGRAPH (II)2 OF THIS
PARAGRAPH, "ASSETS" INCLUDES STOCK OF AN AFFILIATE OR SUBSIDIARY OF A
NONPROFIT HEALTH SERVICE PLAN TO THE EXTENT THAT THE COMMISSIONER
DETERMINES THAT THE STOCK HAS A VALUE THAT COULD BE MADE AVAILABLE
FOR THE PAYMENT OF CLAIMS AND LOSSES.

(3) "EARNED PREMIUM" MEANS EARNED PREMIUMS UNDER:

(I) INSURANCE CONTRACTS AND POLICIES; AND

(II) THE INSURED PART OF OTHER CONTRACTS.

(4) "SURPLUS" MEANS THE AMOUNT BY WHICH ASSETS EXCEED
LIABILITIES DESCRIBED IN § 5-103 OF THIS ARTICLE.

(B) IN GENERAL.

EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A CORPORATION
AUTHORIZED UNDER THIS SUBTITLE SHALL MAINTAIN A SURPLUS IN AN AMOUNT
EQUAL TO THE GREATER OF:

(1) $75,000; AND

(2) 8% OF THE TOTAL EARNED PREMIUM RECEIVED BY THE
CORPORATION IN THE IMMEDIATELY PRECEDING CALENDAR YEAR.

(C) DIFFERENTIATION OF RISK AND NONRISK BUSINESS.

IF THE SIZE AND STRUCTURE OF THE CORPORATION REQUIRES, THE
COMMISSIONER MAY REQUIRE THE DIFFERENTIATION OF THE CORPORATION'S

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