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31.13.02.00.htm 31.13.02.00. Title 31 MARYLAND INSURANCE ADMINISTRATION Subtitle 13 CREDIT LIFE AND CREDIT HEALTH INSURANCE Chapter 02 Credit Life and Credit Health Reinsurance Authority: Insurance Article, §2-109, 4-105, 4-116, and 13-116, Annotated Code of Maryland
31.13.02.01.htm 31.13.02.01. 01 Purpose.. In connection with credit life and credit health insurance written in Maryland by an authorized insurer, Insurance Article, §13-116, Annotated Code of Maryland, permits a fronting agreement between the authorized insurer writing the business and an otherwise unauthorized insurer if the unauthorized insurer maintains certain deposits with the Commissioner. The purpose of these regulations is to establish rules with regard to the deposits which are
31.13.02.02.htm 31.13.02.02. 02 Definitions.. A. In this chapter, the following terms have the meanings indicated.. B. Terms Defined.. 1) "Acceptable securities" means any one of or a combination of the following, provided the securities are not in default as to payment of principal or interest at the time of deposit with the Commissioner:a) Cash;. b) General obligations of, or obligations guaranteed by, the federal government;. c) General obligations of, or obligations guaranteed by this State or any o
31.13.02.03.htm 31.13.02.03. 03 Deposit.. A. Securities on Deposit with the Commissioner.. 1) In order to qualify as an insurer in accordance with Insurance Article, §13-116, Annotated Code of Maryland, the insurer at all times shall keep on deposit with the Commissioner acceptable securities with a total value at least equal to the sum of §A(1)a) and (b) of this regulation:a) $500,000 reduced by the amount of the insurer's actual capital; and. b) $750,000 at the time of initial qualification a
31.13.02.04.htm 31.13.02.04. 04 Custodian Agreement.. A. The deposit of acceptable securities shall be maintained under a custodian agreement acceptable to the Commissioner. If the deposit is made by a person other than the insurer, the Commissioner will require that person to also become a party to the custodian agreement.B. The custodian shall be a bank located in Maryland, which has deposits insured by the Federal Deposit Insurance Corporation, and which is not affiliated with the insurer.
31.13.02.05.htm 31.13.02.05. 05 Letter of Credit.. A. To the extent that the securities on deposit with the Commissioner and the other assets of the fronting reinsurer are insufficient to qualify in accordance with Insurance Article, §13-116, Annotated Code of Maryland, and these regulations, the insurer may provide the Commissioner with an irrevocable letter of credit in an amount at least equal to the shortfall.B. In order to be acceptable for the purpose of this regulation, the letter
31.13.02.9999.htm 31.13.02.9999. Administrative History Effective date: December 12, 1980 (7:25 Md. R. 2334). Regulation .03A amended effective October 29, 1990 (17:21 Md. R. 2527). Regulation .03E amended effective October 29, 1990 (17:21 Md. R. 2527). Regulation .05 adopted effective October 29, 1990 (17:21 Md. R. 2527) ―. Chapter recodified from COMAR 09.30.52 to COMAR 31.13.02 effective September 7, 1998 (25:18 Md. R. 1439)Regulation .02B amended effective November 7, 2016 (43:22 Md. R. 1223).
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