ROBERT L. EHRLICH, JR., Governor                            S.B. 600

requires the plan to specify guidelines related to the investment and financial needs
of a life insurer.

House Bill 1037, which was passed by the General Assembly and signed by me,
accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate
Bill 600.

Sincerely,

Robert L. Ehrlich, Jr.

Governor

Senate Bill No. 600

AN ACT concerning

Life Insurers - Board of Directors - Investments Practices

FOR the purpose of repealing a certain provision of law related to investment and
loan practices of certain life insurers; requiring the board of directors of a life
insurer to adopt a certain plan for acquiring and holding investments and
engaging in investment practices; requiring the plan to specify certain
guidelines related to certain investment and financial needs of a life insurer;
requiring the board to take certain action before adopting the plan; requiring
the board to supervise and direct certain investments; requiring the board to
determine certain information about certain investments and to make a certain
resolution; requiring the board to determine whether certain investment
activity is consistent with the plan by reviewing certain documentation and
revising the plan as needed; requiring the board in the discharge of its duties to
require that certain information be made available to the board; requiring each
director of the board or a committee authorized by the board to act in a certain
manner; providing that, for purposes of this Act, the governing body of a life
insurer that does not have a board of directors shall be deemed to be a board of
directors; repealing a certain provision of law related to reserve requirements;
providing that a life insurer may not acquire certain investments if the
investments would exceed certain admitted assets of a life insurer under certain
circumstances; requiring that any replicated asset be subject to certain
provisions and limitations; defining certain terms; and generally relating to
investment practices by life insurers and the boards of directors of life insurers.

BY renumbering

Article - Insurance

Section 5-511(a)(17), (18), (19), and (20), respectively

to be Section 5-511(a)(20), (21), (22), and (23), respectively

Annotated Code of Maryland

(1997 Volume and 2002 Supplement)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 5-505 and 5-511(a)(15) and (16), (d)(1)(vi), and (o)(1)

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