reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 6 - Investments of Insurers Other Than Life Insurers › Section 5-603 - Date When Eligibility of Investment Determined

(a)    The eligibility of an investment shall be determined as of the date of the making or acquisition of the investment.
(b)    An investment limitation that is based on the amount of assets or particular funds of an insurer shall relate to the assets or funds as shown by:
(1)    the annual statement of the insurer as of the December 31 immediately preceding the date of acquisition of the investment by the insurer; or
(2)    a current financial statement of the insurer filed with the Commissioner that reflects the result of merger or consolidation with another insurer, bulk reinsurance, or change in capitalization.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 6 - Investments of Insurers Other Than Life Insurers › Section 5-604 - Authorization of Investments and Loans

(a)    An insurer may not make an investment or loan unless the investment or loan is authorized by:
(1)    the board of directors of the insurer; or
(2)    a committee authorized by the board of directors of the insurer to supervise or make investments and loans.
(b)    The committee described in subsection (a)(2) of this section shall:
(1)    record its minutes; and
(2)    submit regular reports of the committee to the board of directors.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 6 - Investments of Insurers Other Than Life Insurers › Section 5-606 - Limitation on Amount of Investments

(a)    (1)    Except as otherwise specifically provided in this subtitle, an insurer may not have more than 10% of its total admitted assets invested in or lent on the securities of one person.
(2)    Paragraph (1) of this subsection does not apply to:
(i)    the classes of governmental obligations eligible for minimum capital investments of the insurer, including those obligations eligible under § 5-608(l) of this subtitle; or
(ii)    investments in stock of other insurers.
(b)    An insurer may not acquire the kind of real property specified in § 5-608(n)(1)(i) and (ii) of this subtitle if the value of the real property, plus the value of all of the real property then held by the insurer, exceeds 10% of the insurer’s total admitted assets.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 6 - Investments of Insurers Other Than Life Insurers › Section 5-609 - Unlawfully Acquired Investments

(a)    Each insurer shall dispose of any investments acquired in violation of the law in force on the date of acquisition of the investment.
(b)    In any determination of the financial condition of an insurer with investments acquired in violation of the law, the amount of the value of investments, if wholly ineligible, or the amount of the value of the investments in excess of any limitation prescribed by this subtitle, shall be deducted as a nonadmitted asset of the insurer.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-701 - Deposits of Assets

(a)    When made through the Commissioner by insurers or health maintenance organizations, the Treasurer shall accept and hold in trust:
(1)    deposits required under this article for a certificate of authority to engage in the insurance business in the State;
(2)    deposits required under § 19-710(d)(3) of   the Health - General Article for a certificate of authority to operate as a health maintenance organization;
(3)    deposits of domestic insurers, foreign insurers, or alien insurers required under the laws of another state, province, or country as a prerequisite for authority to engage in the insurance business in the other state, province, or country;
(4)    deposits allowed under § 5-704 of this subtitle; and
(5)    deposits required under Title 6, Subtitle 3 of this article.
(b)    Deposits made under subsection (a) of this section shall be in any combination of:
(1)    cash; or
(2)    the government securities described in § 5-510(b) or § 5-607(b)(1)(i), (ii), or (iii) of this title, as approved by the Treasurer.
(c)    Deposits of government securities shall be registered, both as to principal and interest, in the name of the Treasurer as trustee.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-702 - Trust Companies as Depositories; Responsibility of State

(a)    (1)    With the consent of the Commissioner, the Treasurer may require an insurer to make deposits of cash or government securities of the kinds described in § 5-701(a) of this subtitle with a depository that the Treasurer designates to receive and hold the deposits.
(2)    The Treasurer may designate as a depository any solvent trust company or other solvent financial institution that has trust powers and is domiciled in the State.
(3)    The Treasurer may make an appropriate agreement with a depository to ensure the receipt, safekeeping, and release of the cash or government securities deposited under this section.
(4)    A deposit made under this section shall be held at the expense of the insurer.
(b)    The State is responsible for the safekeeping and return of all cash and government securities deposited under this section.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-703 - Purpose of Deposits

Deposits made under this subtitle shall be held for the following purposes:
(1)    deposits required under this article for a certificate of authority to engage in the insurance business in the State shall be held for the protection of the insurer’s policyholders and creditors;
(2)    deposits required under § 19-710(d)(3) of   the Health - General Article for a certificate of authority to operate as a health maintenance organization shall be held for the protection of the health maintenance organization’s members and creditors;
(3)    deposits of domestic insurers required under the laws of another state, province, or country as a prerequisite for authority to engage in the insurance business in the other state, province, or country shall be held for the protection of the insurer’s policyholders and creditors or for any other purpose specified in the laws requiring the deposits to be made;
(4)    deposits allowed under § 5-704 of this subtitle shall be held for the protection of the insurer’s policyholders and creditors; and
(5)    deposits required under Title 6, Subtitle 3 of this article shall be held for the purposes specified in the notice of the Commissioner requiring the deposits to be made.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-704 - Excess Deposits

(a)    An insurer may deposit cash or government securities eligible for deposit under § 5-701(b) of this subtitle in an amount greater than any deposit required or allowed under this article.
(b)    (1)    All or part of an excess deposit may be released to a solvent insurer on its request as provided in § 5-708(a)(2) of this subtitle.
(2)    An excess deposit may be released to an insolvent insurer only as provided in § 5-708(a)(3) of this subtitle.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-705 - Deficiency of Deposit

An insurer shall deposit promptly additional cash or other or additional government securities eligible for deposit under § 5-701(b) of this subtitle in an amount sufficient to cure any deficiency if:
(1)    the cash or government securities deposited by the insurer and held on deposit under this subtitle become ineligible for deposit under § 5-701(b) of this subtitle; or
(2)    the market value of the deposited cash and government securities falls below the amount required under this article.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-706 - Levy on Deposits by Judgment Creditors

(a)    A judgment creditor or other claimant of an insurer may not levy on any of the cash or government securities held on deposit under this subtitle for the protection of the insurer’s policyholders and creditors.
(b)    A judgment creditor or other claimant of an insurer may levy on a deposit required under Title 6, Subtitle 3 of this article if allowed by the notice of the Commissioner requiring the deposit to be made.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-707 - Rights of Insurer During Solvency

While an insurer is solvent and complies with this article, the insurer may:
(1)    demand, receive, sue for, and recover the income from the cash and government securities deposited by the insurer under this subtitle;
(2)    substitute for any of the deposited cash or government securities, cash or government securities eligible for deposit under § 5-701(b) of this subtitle of equivalent or greater value; and
(3)    inspect, at reasonable times, any deposit made by the insurer under this subtitle.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-708 - Release of Deposits

(a)    A deposit made by an insurer under this subtitle shall be released and returned:
(1)    to the insurer when substantially all liability of the insurer that the deposit secures is extinguished by authorized reinsurance or otherwise;
(2)    to the insurer, if solvent, to the extent that the deposit exceeds the amount required to be deposited under this article; or
(3)    on order of a court of competent jurisdiction, to the receiver, conservator, rehabilitator, or liquidator of the insurer, or to any other properly designated official who succeeds to the management and control of the insurer’s assets.
(b)    Except for a release made under subsection (a)(3) of this section, a release of deposited cash or government securities may be made only on application to and written order of the Commissioner.
(c)    If the release is made in good faith, the Commissioner is not personally liable for the release of any deposit or part of a deposit.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 7 - Administration of Deposits › Section 5-709 - Transfer or Release of Deposits After Merger or Consolidation

(a)    On completion of a merger or consolidation, an insurer that merges or consolidates with another insurer may:
(1)    transfer to the successor insurer any deposit made by the merged or consolidated insurer under this subtitle; or
(2)    have released to the successor insurer all or part of a deposit made by the merged or consolidated insurer under this subtitle that is no longer required of the successor insurer under this article.
(b)    A transfer or release of a deposit under this section may be made only:
(1)    with the approval of the Commissioner; and
(2)    on affidavit of the officers of the merged or consolidated insurer and the successor insurer that the liabilities of the merged or consolidated insurer have been extinguished, canceled, or reinsured.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 8 - Trusteed Assets of Alien Insurers › Section 5-803 - Deposit of Trusteed Assets

(a)    An alien insurer may use Maryland as a state of entry to transact insurance business in the United States if the alien insurer makes and maintains in Maryland a deposit of assets in trust with a solvent bank or trust company approved by the Commissioner.
(b)    The deposit of trusteed assets shall be held for the benefit, security, and protection of the policyholders and creditors of the alien insurer in the United States.
(c)    The deposit of trusteed assets, together with other trust deposits of the alien insurer held in the United States for the same purpose, may not be less than the deposits required of an alien insurer under § 4-106(c) of this article.
(d)    The deposit of trusteed assets shall consist of cash, securities of the same character and diversification as those eligible for investment of the funds of domestic insurers under Subtitle 5 or 6 of this title, or both cash and securities.
(e)    The deposit of trusteed assets shall be maintained as long as any liability of the alien insurer arising out of the transaction of its insurance business in the United States is outstanding.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 8 - Trusteed Assets of Alien Insurers › Section 5-804 - Trust Agreement

(a)    (1)    A deposit of trusteed assets shall be made under a written trust agreement between the alien insurer and the trustee in accordance with this subtitle.
(2)    The deposit of trusteed assets shall be authenticated in the manner approved by the Commissioner.
(b)    Whether or not then authorized to transact insurance business in Maryland, an alien insurer that uses or proposes to use Maryland as a state of entry to transact insurance business in the United States may make and execute the trust agreement required by this subtitle.
(c)    (1)    The trust agreement is not effective until filed with and approved in writing by the Commissioner.
(2)    The Commissioner may not approve a trust agreement if the Commissioner finds that the trust agreement:
(i)    does not comply with law; or
(ii)    has terms that do not provide reasonably adequate protection for the alien insurer’s policyholders and creditors in the United States.
(d)    (1)    A trust agreement may be amended.
(2)    The amendment is not effective until filed with and approved in writing by the Commissioner as complying with this subtitle.
(e)    (1)    The Commissioner may withdraw approval of a trust agreement or amendment to a trust agreement if the Commissioner finds, after a hearing, that the requirements under this subtitle for approval of the trust agreement or amendment are no longer met.
(2)    The Commissioner shall give notice of the hearing required under paragraph (1) of this subsection to the alien insurer and the trustee of the trust agreement.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 8 - Trusteed Assets of Alien Insurers › Section 5-805 - Trusteed Assets

(a)    (1)    For purposes of the trust deposit, title to the trusteed assets is vested in the trustee and its successor.
(2)    The trust agreement shall provide that title to the trusteed assets be vested as described in paragraph (1) of this subsection.
(b)    The trustee shall:
(1)    keep the trusteed assets separate from other assets; and
(2)    maintain a record of the trusteed assets sufficient to identify the trusteed assets at all times.
(c)    (1)    On written request of the Commissioner, the trustee shall file with the Commissioner statements, in the form required by the Commissioner, certifying the character and amount of the trusteed assets.
(2)    If the trustee after a reasonable time fails to file a statement requested by the Commissioner under paragraph (1) of this subsection, the Commissioner may suspend or revoke the certificate of authority of the alien insurer that deposited the trusteed assets.
(d)    The Commissioner may examine the trusteed assets of an alien insurer at any time in accordance with the conditions and procedures that govern the examination of insurers in general under Title 2 of this article.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 8 - Trusteed Assets of Alien Insurers › Section 5-806 - Withdrawal of Assets

(a)    Except as otherwise provided in subsections (b) through (e) of this section, the trust agreement shall provide in substance that an alien insurer may not make, and the trustee may not allow, withdrawals of trusteed assets without advance written authorization of the Commissioner.
(b)    The trust agreement may provide that, on request of an alien insurer or the United States manager of the alien insurer, all or part of the income, earnings, dividends, or interest accumulations of the trusteed assets may be paid to that manager.
(c)    The trust agreement may provide that trusteed assets may be withdrawn and, at the same time, assets of equivalent or greater value to those trusteed assets being withdrawn may be substituted if:
(1)    the substituted assets are eligible for investment of the funds of domestic insurers under Subtitle 5 or 6 of this title;
(2)    the United States manager of the alien insurer requests the withdrawal in writing in accordance with written authority previously given or delegated by the board of directors or other similar governing body of the alien insurer; and
(3)    a copy of that authority has been filed with the trustee.
(d)    The trust agreement may provide that:
(1)    trusteed assets may be withdrawn to make a deposit that is required by law in a state in which the alien insurer is or becomes authorized to engage in the insurance business, for the protection of the alien insurer’s policyholders and creditors in that state or in the United States, to the extent that the withdrawal does not reduce the alien insurer’s deposit in this State to an amount less than the minimum deposit required under § 4-106(c) of this article; and
(2)    if a withdrawal is authorized under item (1) of this subsection, the trustee shall transfer directly to the depository required to receive the deposit in the other state the assets withdrawn in the amount required to be deposited in the other state, as certified in writing by the insurance supervisory official of the other state.
(e)    The trust agreement may provide that trusteed assets may be transferred to a liquidator, conservator, or rehabilitator under an order of a court of competent jurisdiction.
(f)    The Commissioner may authorize withdrawal of only those trusteed assets that exceed the amount required by this subtitle.
(g)    (1)    If the Commissioner determines that an alien insurer is insolvent or that an alien insurer’s assets in the United States are less than required under § 4-106(c) of this article, the Commissioner in writing shall order the trustee to suspend the right of the alien insurer or any other person to withdraw the trusteed assets of the alien insurer.
(2)    The trustee shall comply with the order until further order of the Commissioner.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 9 - Reinsurance › Section 5-902 - Scope of Subtitle; Inconsistent Laws Superseded

(a)    This subtitle does not apply to wet marine and transportation insurance.
(b)    All laws or parts of laws of the State that are inconsistent with this subtitle are superseded to the extent of the inconsistency.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 9 - Reinsurance › Section 5-903 - Credit for Reinsurance Allowed

Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded if the reinsurer meets the requirements of this subtitle.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 9 - Reinsurance › Section 5-904 - Reinsurance Authorized

(a)    Except as provided in §§ 3–124 and 3–125 of this article for bulk reinsurance, an insurer may reinsure all or part of a particular risk.
(b)    (1)    Credit shall be allowed under subsection (c), (d), or (e) of this section with respect to cessions of those kinds or classes of business that the assuming insurer is licensed or otherwise allowed to write or assume in its state of domicile or, in the case of a United States branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance.
(2)    Credit shall be allowed under subsection (e) or (f) of this section only if the applicable requirements of § 5–913 of this subtitle have been satisfied.
(c)    Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is licensed to transact insurance or reinsurance in this State.
(d)    Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is accredited by the Commissioner as a reinsurer in this State in accordance with § 5–906 of this subtitle.
(e)    Subject to the requirements of § 5–913 of this subtitle, credit shall be allowed when the reinsurance is ceded to an assuming insurer that maintains a trust fund meeting the requirements of § 5–907 of this subtitle in a qualified United States financial institution for the payment of the valid claims of its United States ceding insurers and their assigns and successors in interest.
(f)    Credit shall be allowed when the reinsurance is ceded to an assuming insurer that has been certified by the Commissioner as a reinsurer in this State in accordance with §§ 5–908 and 5–909 of this subtitle and secures its obligations in accordance with the requirements of § 5–911 of this subtitle.
(g)    Credit shall be allowed when the reinsurance is ceded to an assuming insurer not meeting the requirements of subsection (c), (d), (e), or (f) of this section, but only as to the insurance of risks located in jurisdictions where the reinsurance is required by the applicable law or regulation of that jurisdiction.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 9 - Reinsurance › Section 5-913 - Reinsurer Not Licensed, Accredited, or Certified

(a)    If the assuming insurer is not licensed, accredited, or certified to transact insurance or reinsurance in this State, the credit allowed by § 5–904(e) of this subtitle may not be allowed unless the assuming insurer agrees in the reinsurance contracts:
(1)    that in the event of the failure of the assuming insurer to perform its obligations under the terms of the reinsurance contract, the assuming insurer, at the request of the ceding insurer, shall:
(i)    submit to the jurisdiction of any court of competent jurisdiction in any state;
(ii)    comply with all requirements necessary to give the court jurisdiction; and
(iii)    abide by the final decision of the court or of any appellate court in case of an appeal; and
(2)    to designate the Commissioner as its resident agent on whom any lawful process may be served in any action, suit, or proceeding instituted by or on behalf of the ceding insurer.
(b)    Subsection (a) of this section is not intended to conflict with or override the obligation of the parties to a reinsurance contract to arbitrate their disputes, if this obligation is created in the reinsurance contract.
(c)    If the assuming insurer does not meet the requirements of § 5–904(c) or (d) of this subtitle, the credit allowed by § 5–904(e) and (f) of this subtitle may not be allowed unless the assuming insurer agrees in the trust agreements to the following conditions:
(1)    notwithstanding any other provision in the trust instrument, if the trust fund is inadequate because it contains an amount less than the amount required by § 5–907(j) of this subtitle, or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile, the trustee shall comply with an order of the insurance regulatory agency with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the insurance regulatory agency with regulatory oversight all of the assets of the trust fund;
(2)    the assets shall be distributed by and claims shall be filed with and valued by the insurance regulatory agency with regulatory oversight over the trust in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurers;
(3)    if the insurance regulatory agency with regulatory oversight over the trust determines that the assets of the trust fund or any part of the assets are not necessary to satisfy the claims of the United States ceding insurers of the grantor of the trust, the assets or part shall be returned by the insurance regulatory agency with regulatory oversight to the trustee for distribution in accordance with the trust agreement; and
(4)    the grantor shall waive any right otherwise available to it under United States law that is inconsistent with this subsection.
2023 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.
2023 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.
2023 Maryland Statutes › Insurance › Title 5 - Assets, Liabilities, Reserves, and Investments of Insurers › Subtitle 9 - Reinsurance › Section 5-916 - Regulations

(a)    The Commissioner may adopt:
(1)    regulations to carry out this subtitle; and
(2)    rules and regulations applicable to reinsurance arrangements described in subsection (b) of this section.
(b)    (1)    A rule or regulation adopted under subsection (a)(2) of this section may apply only to reinsurance relating to:
(i)    life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;
(ii)    universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;
(iii)    variable annuities with guaranteed death or living benefits;
(iv)    long–term care insurance policies; or
(v)    other life and health insurance and annuity products as to which the National Association of Insurance Commissioners adopts model regulatory requirements with respect to credit for reinsurance.
(2)    A rule or regulation adopted under subsection (a)(2) of this section that applies to reinsurance relating to policies specified under paragraph (1)(i) or (ii) of this subsection may apply to any treaty containing:
(i)    policies issued on or after January 1, 2015; or
(ii)    policies issued before January 1, 2015, if the risk pertaining to the pre–2015 policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.
(3)    A rule or regulation adopted under subsection (a)(2) of this section may require the ceding insurer, in calculating the amounts or forms of security required to be held under regulations adopted under subsection (a)(2) of this section, to use the valuation manual adopted by the National Association of Insurance Commissioners in accordance with § 5–313 of this title, including all amendments adopted by the National Association of Insurance Commissioners and in effect on the date the calculation is made, to the extent applicable.
(4)    A rule or regulation adopted under subsection (a)(2) of this section may not apply to a cession to an assuming insurer that:
(i)    meets the conditions set forth in § 5–917 of this subtitle;
(ii)    is certified in this State in accordance with § 5–904(f) of this subtitle; or
(iii)    1.    maintains at least $250,000,000 in capital and surplus when determined in accordance with the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, including all amendments adopted by the National Association of Insurance Commissioners, excluding the impact of any permitted or prescribed practices; and
2.    A.    is licensed in at least 26 states; or
B.    is licensed in at least 10 states and is licensed or accredited in a total of at least 35 states.
(c)    The authority of the Commissioner to adopt regulations under subsection (a)(2) of this section does not limit the Commissioner’s general authority to adopt regulations under subsection (a)(1) of this section.
2023 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.
2023 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.
2023 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.