Source: https://law.justia.com/codes/maryland/2013/article-gin/section-7-105/
Timestamp: 2020-05-29 08:11:46
Document Index: 667881783

Matched Legal Cases: ['§ 7', '§ 7', '§ 7', '§ 7', '§7', '§ 7']

§ 7-105 - Standards for reasonableness of assets and surplus as regards policyholders [Subject to amendment effective January 1, 2014; amended version follows this section]. :: 2013 Maryland Code :: US Codes and Statutes :: US Law :: Justia
Justia US Law US Codes and Statutes Maryland Code 2013 Maryland Code INSURANCE § 7-105 - Standards for reasonableness of assets and surplus as regards policyholders [Subject to amendment effective January 1, 2014; amended version follows this section].
§ 7-105 - Standards for reasonableness of assets and surplus as regards policyholders [Subject to amendment effective January 1, 2014; amended version follows this section].
MD Ins Code § 7-105 (2013) What's This?
§7-105.
(a) For purposes of this title, in determining whether an insurer’s assets and surplus as regards policyholders are reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
(4) the geographical dispersion of the insurer’s insured risks;
(5) the nature and extent of reinsurance of the insurer’s risks;
(7) the recent past and projected future trends in the size of the insurer’s surplus as regards policyholders;
(8) the surplus as regards policyholders maintained by comparable insurers;
(9) the quality and liquidity of investments in and other transactions with affiliates;
(10) the adequacy of the reserves of the insurer; and
(11) the quality of the earnings of the insurer and the extent to which the reported earnings include extraordinary items.
(b) The Commissioner may discount an investment or treat an investment under subsection (a)(9) of this section as a nonadmitted asset for purposes of determining the adequacy of surplus as regards policyholders whenever the investment so warrants.
§ 7-105 - Standards for reasonableness of assets and surplus as regards policyholders (Effective January 1, 2014)
(a) In general. -- For purposes of this title, in determining whether an insurer's assets and surplus as regards policyholders are reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
(4) the geographical dispersion of the insurer's insured risks;
(5) the nature and extent of reinsurance of the insurer's risks;
(7) the recent past and projected future trends in the size of the insurer's surplus as regards policyholders;
(10) the adequacy of the reserves of the insurer;
(11) the quality of the earnings of the insurer and the extent to which the reported earnings include extraordinary items; and
(12) the recent past and projected future trends in the size and quality of the insurer's investment portfolio.
(b) Action by Commissioner on investments. -- The Commissioner may discount an investment or treat an investment under subsection (a)(9) of this section as a nonadmitted asset for purposes of determining the adequacy of surplus as regards policyholders whenever the investment so warrants.