PARRIS N. GLENDENING, Governor

Ch. 35

in former Art. 48A, § 355 and that section cross-referenced the definition of
"surplus" in former Art. 48A, § 355A, which is revised as this section.

In subsection (a)(2)(ii)1 of this section, the former phrase "explicit or
implied" is deleted as surplusage.

In subsections (a)(3), (b)(2), (c), and (e)(1)(i) of this section, the defined term
"earned premium" is substituted for the former defined term "premium" to
avoid conflict with the definition of "premium" in § 1-101 of this article.

In subsection (b) of this section, the phrase "[e]xcept as provided in subsection
(d) of this section," is added for clarity.

As to the substitution of the references to a corporation "authorized" under
this subtitle for the former references to a corporation "licensed" under this
subtitle in subsections (b), (d), and (e)(1) and (2) of this section, see the
General Revisor's Note to this subtitle.

Defined terms: "Commissioner" § 1-101
"Insurance contract" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"State" § 1-101

14-118. IMPAIRED SURPLUS.

(A) NOTICE OF DEFICIENCY.

IF THE MINIMUM SURPLUS OF A CORPORATION AUTHORIZED UNDER THIS
SUBTITLE REQUIRED TO BE MAINTAINED BY § 14-117 OF THIS SUBTITLE BECOMES
IMPAIRED, THE COMMISSIONER IMMEDIATELY MAY DETERMINE THE AMOUNT OF
DEFICIENCY AND SERVE NOTICE ON THE CORPORATION AND ITS BOARD OF
DIRECTORS TO CURE THE DEFICIENCY WITHIN THE TIME PERIOD SPECIFIED BY THE
COMMISSIONER, WHICH MAY NOT EXCEED 120 DAYS AFTER SERVICE OF THE
NOTICE.

(B) METHODS OF CURING DEFICIENCY.

THE CORPORATION MAY CURE THE DEFICIENCY IN CASH OR IN ASSETS
ELIGIBLE FOR THE INVESTMENT OF THE CORPORATION'S FUNDS UNDER § 14-120 OF
THIS SUBTITLE.

(C) INSOLVENCY; DELINQUENCY PROCEEDINGS.

EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, IF A
CORPORATION THAT HAS BEEN NOTIFIED OF A DEFICIENCY UNDER SUBSECTION (A)
OF THIS SECTION DOES NOT CURE THE DEFICIENCY AND FILE PROOF THAT IT HAS
DONE SO WITH THE COMMISSIONER WITHIN THE TIME PERIOD SPECIFIED BY THE
COMMISSIONER:

(1) THE CORPORATION MAY BE CONSIDERED INSOLVENT; AND

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