Ch. 193                                    2003 LAWS OF MARYLAND

1.       20% of its total admitted assets in asset backed securities;

2.       10% of its total admitted assets in asset backed securities
representing an interest in assets or pools of assets other than commercial or
residential mortgages; and

3.] 3% of its total admitted assets in the asset backed
securities of any one issuer; and

(3) A LIFE INSURER MAY NOT ACQUIRE DIRECTLY OR INDIRECTLY
THROUGH AN INVESTMENT SUBSIDIARY AN INVESTMENT UNDER SUBSECTION (D),
(E), OR (F) OF THIS SECTION OR § 5-509 OF THIS SUBTITLE, OR COUNTERPARTY
EXPOSURE UNDER SUBSECTION (O) OF THIS SECTION, IF AS A RESULT OF AND AFTER
GIVING EFFECT TO THE INVESTMENT:

(I)      THE AGGREGATE AMOUNT OF MEDIUM GRADE INVESTMENTS
AND LOWER GRADE INVESTMENTS THEN HELD BY THE LIFE INSURER WOULD
EXCEED 20% OF THE LIFE INSURER'S ADMITTED ASSETS;

(II)     THE AGGREGATE AMOUNT OF LOWER GRADE INVESTMENTS
THEN HELD BY THE LIFE INSURER WOULD EXCEED 10% OF THE LIFE INSURER'S
ADMITTED ASSETS;

(III)   THE AGGREGATE AMOUNT OF INVESTMENTS RATED FIVE OR
SIX BY THE SECURITIES VALUATION OFFICE OF THE NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS THEN HELD BY THE LIFE INSURER WOULD EXCEED 3%
OF THE LIFE INSURER'S ADMITTED ASSETS;

(IV)    THE AGGREGATE AMOUNT OF INVESTMENTS RATED SIX BY
THE SECURITIES VALUATION OFFICE OF THE NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS THEN HELD BY THE LIFE INSURER WOULD EXCEED 1%
OF THE LIFE INSURER'S ADMITTED ASSETS;

(V)     THE AGGREGATE AMOUNT OF MEDIUM GRADE INVESTMENTS
AND LOWER GRADE INVESTMENTS THEN HELD BY THE LIFE INSURER THAT RECEIVE
AS CASH INCOME LESS THAN THE EQUIVALENT YIELD FOR UNITED STATES
DEPARTMENT OF THE TREASURY ISSUES WITH A COMPARATIVE AVERAGE LIFE,
WOULD EXCEED 1% OF THE LIFE INSURER'S ADMITTED ASSETS;

(VI)    THE FOLLOWING WOULD EXCEED 1% OF THE LIFE INSURER'S
ADMITTED ASSETS:

1.       THE AGGREGATE AMOUNT OF MEDIUM GRADE
INVESTMENTS AND LOWER GRADE INVESTMENTS ISSUED, ASSUMED, GUARANTEED,
ACCEPTED, OR INSURED BY ANY ONE PERSON; OR

2.       ANY ASSET-BACKED SECURITIES SECURED BY OR
EVIDENCING AN INTEREST IN A SINGLE ASSET OR POOL OF ASSETS; OR

(VII)  THE FOLLOWING WOULD EXCEED ONE-HALF OF ONE PERCENT
OF THE LIFE INSURER'S ADMITTED ASSETS:

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