reglab/housing_qa huggingface dataset:
MD. Insurance Code Ann. §  5-906 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-906 - Requirements for Accreditation

    (a)    In order for an assuming reinsurer to be eligible for accreditation by the Commissioner, the reinsurer shall:        (1)    file with the Commissioner evidence of its submission to this State’s jurisdiction;        (2)    submit to the Commissioner’s authority to examine its books and records;        (3)    be licensed to transact insurance or reinsurance in at least one state or, in the case of a United States branch of an alien assuming insurer, be entered through and licensed to transact insurance or reinsurance in at least one state;        (4)    file each year with the Commissioner a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement; and        (5)    demonstrate to the satisfaction of the Commissioner that the reinsurer has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers.    (b)    An assuming insurer is deemed to meet the requirement of subsection (a)(5) of this section as of the time of its application if:        (1)    the assuming insurer maintains a surplus as regards policyholders in an amount not less than $20,000,000; and        (2)    the Commissioner has not denied the assuming insurer’s accreditation within 90 days after submission of its application.
MD. Insurance Code Ann. §  5-908 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-908 - Certification

    (a)    In order to be eligible for certification in accordance with § 5–904(f) of this subtitle, the assuming insurer shall:        (1)    be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined under § 5–909 of this subtitle;        (2)    maintain minimum capital and surplus, or its equivalent, in an amount the Commissioner determines in accordance with regulations the Commissioner adopts;        (3)    maintain financial strength ratings from two or more rating agencies that the Commissioner considers acceptable in accordance with regulations the Commissioner adopts;        (4)    agree to submit to the jurisdiction of this State;        (5)    appoint the Commissioner as its agent for service of process in this State;        (6)    agree to provide security for all of the assuming insurer’s liabilities attributable to reinsurance ceded by United States ceding insurers if it resists enforcement of a final United States judgment;        (7)    agree to meet applicable information filing requirements as the Commissioner determines both for the initial application for certification and on an ongoing basis; and        (8)    satisfy any other requirements for certification that the Commissioner considers relevant.    (b)    (1)    A group, including incorporated and individual unincorporated underwriters, may be a certified reinsurer if the group, including incorporated and individual unincorporated underwriters, meets all the requirements of this section.        (2)    The group shall satisfy its minimum capital and surplus equivalents, net of liabilities, of the group and its members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the group or any of its members, in an amount that the Commissioner determines will provide adequate protection.        (3)    The incorporated members of the group may not be engaged in any business other than underwriting as a member of the group.        (4)    The incorporated members of the group shall be subject to the same level of regulation and solvency control by the group’s domiciliary regulator as are the unincorporated members.        (5)    Within 90 days after its financial statements are due to be filed with the group’s domiciliary regulator, the group shall provide to the Commissioner:            (i)    an annual certification by the group’s domiciliary regulator of the solvency of each underwriter member; or            (ii)    if a certification is unavailable, financial statements, prepared by independent public accountants, of each underwriter member of the group.
MD. Insurance Code Ann. §  5-909 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-909 - List of Qualifying Jurisdictions

    (a)    (1)    The Commissioner shall maintain and publish a list of qualified jurisdictions under which an assuming insurer, licensed and domiciled in that jurisdiction, is eligible to be considered for certification by the Commissioner as a certified reinsurer.        (2)    In order to determine whether the domiciliary jurisdiction of a non–United States assuming insurer is eligible to be recognized as a qualified jurisdiction, the Commissioner shall:            (i)    evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, initially and on an ongoing basis; and            (ii)    consider the rights, benefits, and extent of reciprocal recognition afforded by the non–United States jurisdiction to reinsurers licensed and domiciled in the United States.        (3)    A qualified jurisdiction shall agree in writing to share information and cooperate with the Commissioner with respect to all certified reinsurers domiciled in that jurisdiction.        (4)    The Commissioner may not recognize a jurisdiction as a qualified jurisdiction unless the Commissioner has determined that the jurisdiction adequately and promptly enforces final United States judgments and arbitration awards.        (5)    The Commissioner may consider other factors in determining the jurisdiction’s eligibility to be recognized as a qualified jurisdiction.    (b)    (1)    The Commissioner shall consider the list of conditionally qualified and qualified jurisdictions published through the National Association of Insurance Commissioners committee process in determining the qualified jurisdictions in this State.        (2)    In determining whether a jurisdiction is a qualified jurisdiction, the Commissioner shall consider the National Association of Insurance Commissioners list of conditionally qualified and qualified jurisdictions:            (i)    when the jurisdiction has been evaluated for inclusion on the list; and            (ii)    whenever the list is amended.        (3)    If the Commissioner approves a jurisdiction as qualified that does not appear on the National Association of Insurance Commissioners list of qualified jurisdictions, the Commissioner shall provide information related to the approval to the National Association of Insurance Commissioners as provided in regulations the Commissioner adopts.        (4)    The Commissioner shall recognize as a qualified jurisdiction in this State any state that meets the requirement for accreditation under the National Association of Insurance Commissioners financial standards and accreditation program.        (5)    If a certified reinsurer’s domiciliary jurisdiction ceases to be a qualified jurisdiction, the Commissioner may indefinitely suspend or revoke the reinsurer’s certification.
MD. Insurance Code Ann. §  5-910 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-910 - Rating; Inactive Status

    (a)    (1)    The Commissioner shall assign a rating to each certified reinsurer based on factors the Commissioner considers relevant, giving due consideration to the financial strength ratings that have been assigned by rating agencies in accordance with regulations the Commissioner adopts.        (2)    The Commissioner shall publish a list of all certified reinsurers and their ratings.    (b)    If an applicant for certification has been certified as a reinsurer by the insurance regulatory agency of a state accredited by the National Association of Insurance Commissioners, the Commissioner may defer to that insurance regulatory agency or the National Association of Insurance Commissioners committee process to:        (1)    designate the assuming insurer as a certified reinsurer in this State;        (2)    assign a rating to the assuming insurer; or        (3)    both.    (c)    (1)    A certified reinsurer that ceases to assume new business in this State may request to maintain its certification in inactive status in order to continue to qualify for a reduction in security for its in–force business.        (2)    An inactive certified reinsurer shall continue to comply with all applicable requirements of § 5–911 of this subtitle.        (3)    The Commissioner shall assign a rating that takes into account, if relevant, the reasons why the reinsurer is not assuming new business.
MD. Insurance Code Ann. §  5-911 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-911 - Security

    (a)    A certified reinsurer shall secure obligations assumed from United States ceding insurers under this subtitle at a level consistent with its rating, as specified in regulations the Commissioner adopts.    (b)    Except as otherwise provided in this section, in order for a domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to a certified reinsurer, the certified reinsurer shall maintain security in a form the Commissioner considers acceptable and consistent with § 5–914 of this subtitle, or in a multibeneficiary trust in accordance with § 5–907 of this subtitle.    (c)    (1)    If a certified reinsurer maintains a trust to fully secure its obligations consistent with § 5–907 of this subtitle and chooses to secure its obligations incurred as a certified reinsurer in the form of a multibeneficiary trust, the certified reinsurer shall maintain separate trust accounts for its obligations incurred under reinsurance contracts issued or renewed as a certified reinsurer with reduced security as allowed by this section or comparable laws of other United States jurisdictions and for its obligations subject to § 5–907 of this subtitle.        (2)    As a condition of certification under § 5–908 of this subtitle, the certified reinsurer shall bind itself, by the language of the trust and agreement with the commissioner with principal regulatory oversight of each trust account, to fund, on termination of the trust account, out of the remaining surplus of the trust, any deficiency of any other trust account.    (d)    The minimum trusteed surplus requirements provided in § 5–907 of this subtitle do not apply with respect to a multibeneficiary trust maintained by a certified reinsurer for the purpose of securing obligations incurred under this section, except that the trust shall maintain a minimum trusteed surplus of $10,000,000.    (e)    With respect to obligations incurred by a certified reinsurer under this section, if the security is insufficient, the Commissioner:        (1)    shall reduce the allowable credit by an amount proportionate to the deficiency; and        (2)    may impose further reductions in allowable credit on finding that there is a material risk that the certified reinsurer’s obligations will not be paid in full when due.    (f)    (1)    For purposes of this section, a certified reinsurer whose certification the Commissioner has revoked, suspended, or placed on inactive status, or has been voluntarily surrendered, for any reason shall be treated as a certified reinsurer required to secure all of its obligations.        (2)    If the Commissioner continues to assign a higher rating as allowed by other provisions of this section, the requirement of paragraph (1) of this subsection does not apply to a certified reinsurer in inactive status or to a reinsurer whose certification has been suspended.
MD. Insurance Code Ann. §  5-912 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-912 - Suspension or Revocation of Accreditation or Certification

    (a)    After providing notice and an opportunity for hearing to the reinsurer, the Commissioner may suspend or revoke a reinsurer’s accreditation or certification if the reinsurer ceases to meet the requirements for accreditation or certification.    (b)    The revocation or suspension may not take effect until after the Commissioner’s order on hearing unless:        (1)    the reinsurer waives its right to a hearing;        (2)    the Commissioner’s order is based on a regulatory action by the reinsurer’s domiciliary jurisdiction or primary certifying state suspending or revoking the reinsurer’s eligibility to transact insurance or reinsurance;        (3)    the reinsurer voluntarily surrenders its license or certification to transact insurance or reinsurance business in its domiciliary jurisdiction or primary certifying state; or        (4)    (i)    the Commissioner finds that an emergency requires immediate action by the Commissioner; and            (ii)    a court of competent jurisdiction has not stayed the Commissioner’s action.    (c)    (1)    While a reinsurer’s accreditation or certification is suspended, a reinsurance contract issued or renewed after the effective date of the suspension does not qualify for credit except to the extent the reinsurer’s obligations under the contract are secured in accordance with § 5–914 of this subtitle.        (2)    If a reinsurer’s accreditation or certification is revoked, credit for reinsurance may not be granted after the effective date of the revocation except to the extent that the reinsurer’s obligations under the contract are secured in accordance with § 5–911 or § 5–914 of this subtitle.
MD. Insurance Code Ann. §  5-914 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-914 - Amount of Asset or Reduction From Liability for Assuming Insurer Not Meeting Requirements

    (a)    An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of § 5–904 of this subtitle shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer.    (b)    The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations under the contract, if the security is held:        (1)    in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or        (2)    in the case of a trust, held in a qualified United States financial institution.    (c)    The security may be in the form of:        (1)    cash;        (2)    securities listed by the securities valuation office of the National Association of Insurance Commissioners, including those deemed exempt from filing as defined by the purposes and procedures manual of the securities valuation office, and qualifying as admitted assets;        (3)    subject to subsection (d) of this section, clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified United States financial institution, effective no later than December 31 of the year for which the filing is being made, and in the possession of, or in trust for, the ceding insurer on or before the filing date of the ceding insurer’s annual statement; or        (4)    any other form of security acceptable to the Commissioner.    (d)    Notwithstanding the subsequent failure of the issuing or confirming institution to meet applicable standards of issuer acceptability, a letter of credit meeting applicable standards of issuer acceptability as of the date of its issuance or confirmation under subsection (c)(3) of this section shall continue to be acceptable as security until the letter of credit expires or is extended, renewed, modified, or amended, whichever occurs first.
MD. Insurance Code Ann. §  5-915 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-915 - Managing Reinsurance Recoverables

    (a)    (1)    A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business.        (2)    (i)    A domestic ceding insurer shall notify the Commissioner within 30 days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds or is likely to exceed 50% of the domestic ceding insurer’s last reported surplus to policyholders.            (ii)    The notification required by subparagraph (i) of this paragraph shall demonstrate that the domestic ceding insurer is safely managing the exposure.    (b)    (1)    A ceding insurer shall take steps to diversify its reinsurance program.        (2)    (i)    A domestic ceding insurer shall notify the Commissioner within 30 days after ceding or being likely to cede to any single assuming insurer, or group of affiliated assuming insurers, more than 20% of the ceding insurer’s gross written premium in the prior calendar year.            (ii)    The notification required by subparagraph (i) of this paragraph shall demonstrate that the domestic ceding insurer is safely managing the exposure.
MD. Insurance Code Ann. §  5-916 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 9 - Reinsurance|Section 5-916 - Regulations

    The Commissioner may adopt regulations to carry out this subtitle.
MD. Insurance Code Ann. §  5-1001 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 10 - Limitation of Risk|Section 5-1001 - Definitions

    (a)    In this subtitle the following words have the meanings indicated.    (b)    “Subject of insurance” includes, as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophe hazards, all properties that:        (1)    are insured by the same insurer; and        (2)    customarily are considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of the hazard insured against.    (c)    “Surplus to policyholders” means an insurer’s capital, surplus, and voluntary reserves.
MD. Insurance Code Ann. §  5-1002 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 10 - Limitation of Risk|Section 5-1002 - Scope of Subtitle

    (a)    This subtitle does not apply to:        (1)    life insurance;        (2)    health insurance;        (3)    annuities;        (4)    title insurance;        (5)    wet marine and transportation insurance;        (6)    workers’ compensation insurance;        (7)    employer’s liability coverage; or        (8)    a policy or type of coverage as to which the maximum possible loss to the insurer cannot be readily ascertained when the policy is issued or the coverage is provided.    (b)    As to alien insurers, this subtitle applies only to risks and surplus to policyholders of an alien insurer’s United States branch.
MD. Insurance Code Ann. §  5-1003 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 10 - Limitation of Risk|Section 5-1003 - Limitation of Risk -- in General

    (a)    (1)    Subject to § 5-1004 of this subtitle and except as provided under § 5-1005 of this subtitle, an insurer may not retain a risk on any one subject of insurance, whether located or to be performed in the State or outside of the State, in an amount exceeding 10% of the insurer’s surplus to policyholders.        (2)    An insurer’s surplus to policyholders shall be determined at the time a risk is assumed from the more recent of:            (i)    the last sworn statement of the insurer on file with the Commissioner; or            (ii)    the last examination report of the insurer.    (b)    In determining the amount of risk retained by an insurer, a deduction shall be made for reinsurance ceded by the insurer for which credit is allowed under § 5-904 of this title.
MD. Insurance Code Ann. §  5-1004 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 10 - Limitation of Risk|Section 5-1004 - Limitation of Risk -- Surety Insurers

    (a)    A surety insurer may execute transportation or warehousing bonds for federal internal revenue taxes in a net amount not exceeding 20% of the surety insurer’s surplus to policyholders, determined under § 5-1003(a)(2) of this subtitle.    (b)    The net amount of exposure on any one surety risk shall be deemed within the 10% limit established by § 5-1003(a)(1) of this subtitle if the surety insurer is protected in excess of that amount:        (1)    by authorized reinsurance;        (2)    by the cosuretyship of another surety insurer authorized to engage in the surety insurance business in the State;        (3)    by a deposit of property with the surety insurer in pledge or a conveyance of property to the surety insurer in trust for the protection of the surety insurer;        (4)    by a conveyance or mortgage of property for the protection of the surety insurer; or        (5)    if a suretyship or guaranty obligation was made on behalf of or on account of a fiduciary holding property in a trust capacity, by a deposit or other disposition of a part of the property held in trust that prohibits the sale, mortgage, or other disposition of the property without the consent of the surety insurer or a court order or decree.    (c)    In determining the net amount of exposure on any one surety risk:        (1)    when the amount of a suretyship obligation exceeds the actual amount of the judgment that is being appealed and that is secured by a bond, or exceeds the amount of the subject matter in controversy, or exceeds the amount of the estate held by the fiduciary for the performance of whose duties a bond is conditioned, the actual amount of the judgment, the subject matter in controversy, or the estate not subject to the supervision or control of the surety insurer shall be used as the basis for determining whether the risk exceeds the 10% limit established by § 5-1003(a)(1) of this subtitle; and        (2)    when the amount of a suretyship obligation required for the performance of a contract exceeds the contract price, the contract price shall be used as the basis for determining whether the risk exceeds the 10% limit established by § 5-1003(a)(1) of this subtitle.    (d)    In addition to any other limitation contained in this article, a surety insurer may not be exposed at any one time to risks on suretyship obligations that guaranty the deposits of a single financial institution in an aggregate net amount exceeding 10% of the surety insurer’s surplus to policyholders, determined under § 5-1003(a)(2) of this subtitle, unless the surety insurer is protected in excess of that amount as provided in subsection (b) of this section.
MD. Insurance Code Ann. §  5-1005 (2021)
2021 Maryland Statutes|Insurance|Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers|Subtitle 10 - Limitation of Risk|Section 5-1005 - Limitation of Risk -- Financial Guaranty Insurance

    The Commissioner may establish by regulation limits on the risk retained by an insurer for a subject of financial guaranty insurance, including requirements for contingency reserves used in determining compliance with the applicable risk limits.