H.B. 965                                                  VETOES

(1997 Volume and 2002 Supplement)

BY repealing and reenacting, without amendments,
Article - Insurance
Section 5-511(n)
Annotated Code of Maryland
(1997 Volume and 2002 Supplement)

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.

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