THE FORM OF THE POLICY OR ANNUITY CONTRACT AND THE PLAN OF OPERATIONS
OPERATION HAS BEEN FILED WITH AND APPROVED BY THE COMMISSIONER

(2) Preferred and common stock investments of amounts allocated to a
segregated asset account may not be included in applying the 10% limitations under
§ 5-511(f) of this article.

[(3) Up to 25% of the assets of a segregated asset account may be invested
in nondividend paying stock if the issuer of the stock has not had a net operating loss:

(i) in more than 2 of its 12 fiscal quarters immediately preceding
the date of purchase of the stock; or

(ii) in more than 2 of its fiscal quarters from the date of its
incorporation if it has not been incorporated for at least 3 years before the date of
purchase of the stock.]

(b) The investments of a segregated asset account shall comply with the
regulations of the Commissioner.

(c) To the extent provided under the applicable contracts, the part of the
assets of a segregated asset account equal to the reserves and other contract liabilities
with respect to the account may not be chargeable with liabilities arising out of any
other business that the insurer may conduct.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1999.

May 27, 1999

The Honorable Casper R. Taylor, Jr.
Speaker of the House
State House
Annapolis MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 803.

This bill provides that a homeowners association may not prohibit the use of a
residence as a family day care home or no-impact home-based business in its
declaration, bylaws, or recorded covenants and restrictions until the lot owners, other
than the developer, have 90% of the votes in the homeowners association.

Senate Bill 403, which was passed by the General Assembly and signed by me on May
13, 1999, accomplishes the same purpose. Therefore, it is not necessary for me to sign
House Bill 803.

Sincerely,

Parris N. Glendening
Governor