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§ 4-106. Deposit of cash and securities in trust

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 4. General Requirements for Insurers
Subtitle 1. Certificates of Authority (Refs & Annos)
MD Code, Insurance, § 4-106
§ 4-106. Deposit of cash and securities in trust
In general
(a) Except as provided in subsections (b) and (c) of this section, to qualify for a certificate of authority, an insurer shall deposit and maintain in trust with the Treasurer, for the protection of the insurer's policyholders and creditors, an amount not less than $100,000 in:
(1) cash; or
(2) government securities eligible for the investment of capital funds of domestic insurers as specified in § 5-701(b) of this article.
Like deposits verified by insurance supervisory officials
(b) For a foreign insurer, instead of all or part of the deposit required by subsection (a) of this section, the Commissioner shall accept the current certificate of the insurance supervisory official of another state showing that a like deposit by the foreign insurer is being maintained:
(1) in public custody or in a depository approved by the official; and
(2) in trust for protection of the policyholders and creditors of the foreign insurer in the United States.
Satisfactory evidence of assets maintained in the US
(c) For an alien insurer, instead of all or part of the deposit required by subsection (a) of this section, the Commissioner shall accept evidence satisfactory to the Commissioner that the alien insurer maintains in the United States assets available for discharge of its insurance obligations in the United States:
(1) in public depositories, or in trust institutions in the United States approved by the Commissioner; and
(2) in an amount not less than the outstanding liabilities of the insurer arising out of its insurance business in the United States, plus an amount equal to the deposit required under this section for other insurers requesting authority to engage in like kinds of insurance business.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 50.
MD Code, Insurance, § 4-106, MD INSURANCE § 4-106
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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