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§ 3-220. Money advances to reciprocal insurers

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 2. Reciprocal Insurers (Refs & Annos)
MD Code, Insurance, § 3-220
§ 3-220. Money advances to reciprocal insurers
Currentness
Application of section
(a) This section does not apply to bank loans or to loans for which security is given.
Advancement of money required for operations
(b) The attorney in fact of a domestic reciprocal insurer or another person may advance to the reciprocal insurer on reasonable terms any money that the reciprocal insurer requires periodically in its operations.
Nature of advanced money
(c)(1) The money advanced to a reciprocal insurer:
(i) may not be treated as a liability of the reciprocal insurer; and
(ii) except on liquidation of the reciprocal insurer, may be withdrawn or repaid only out of the reciprocal insurer's realized earned surplus in excess of its minimum required surplus.
(2) A withdrawal or repayment may be made only with the previous approval of the Commissioner.

Credits

Added by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997.
Formerly Art. 48A, § 290.
MD Code, Insurance, § 3-220, MD INSURANCE § 3-220
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document