ROBERT L. EHRLICH, JR., Governor                             Ch. 399

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

4-115.

(c) (1) A domestic insurer, including a reciprocal insurer, fraternal benefit
society, or nonprofit health service plan, with its home or executive office in the State
shall keep in the State:

(i) its general ledger accounting records; and

(ii) [subject to subsection (d) of this section,] all of its assets except:

1.       real property lawfully owned by the insurer and located
outside of the State, personal property appurtenant to the real property, or mortgages
on the real property;

2.       property of the insurer that is customary and necessary to
the operation of the insurer's branch offices outside of the State;

3.       securities deposited in a jurisdiction outside of the State as
a condition of authority to transact business in that jurisdiction or securities
deposited in connection with obtaining surety bonds; [and

4.       securities held for safekeeping by a bank or. other
institution that:

A.      is approved by the Commissioner;

B.      is located in the United States or Canada, or in any
jurisdiction in which the insurer is licensed to do business; and

C.      has a custodial agreement with the insurer approved by
the Commissioner]

4.       SECURITIES HELD EITHER BY THE INSURER OR IN
COMPLIANCE WITH REGULATIONS ADOPTED BY THE COMMISSIONER; AND

5.       TRANSACTIONS OR SECURITIES INVOLVED IN
TRANSACTIONS AUTHORIZED BY § 5-511(N) AND (O) OF THIS ARTICLE OR ANY OTHER
TRANSACTIONS OR SECURITIES INVOLVED IN TRANSACTIONS EXEMPTED BY THE
COMMISSIONER FROM THIS PARAGRAPH.

(2) A financial guaranty reinsurance company or financial guaranty
insurance company that became domiciled in the State on or before December 31,
1993, and that does not have its home or executive office in the State:

(i) shall keep in the State its entire assets as required by
paragraph (1)(ii) of this subsection; and

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