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§ 5-804. Trust agreements

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 5. Assets, Liabilities, Reserves, and Investments of Insurers
Subtitle 8. Trusteed Assets of Alien Insurers (Refs & Annos)
MD Code, Insurance, § 5-804
§ 5-804. Trust agreements
Deposit of trusteed assets
(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.
Trust agreements
(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.
Filing and approval of trust agreement by Commissioner
(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.
Amendment of trust agreement
(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.
Withdrawal of approval of trust agreement or amendment
(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.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, §§ 122 to 125.
MD Code, Insurance, § 5-804, MD INSURANCE § 5-804
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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