31.05.06.02

.02 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Admitted assets" means those assets of the insurer which comply with the definition of the term contained in Insurance Article, §5-101, Annotated Code of Maryland, and which are listed on the last annual statement of the insurer filed with the Commissioner and valued in accordance with the then current instructions, rules, and regulations of the National Association of Insurance Commissioners and of the Commissioner.

(2) "High yield/high risk obligation" means an interest-bearing obligation which is not an investment grade obligation.

(3) "Interest-bearing obligation" means:

(a) An obligation of the type specified in Insurance Article, §§5-511(d)(ii), (iii), (iv) and 5-608(d) and (e), Annotated Code of Maryland, for a reserve investment; or

(b) A collateral loan which meets the requirements of Insurance Article, §5-511(i), Annotated Code of Maryland, and is secured by an obligation described in §B(3)(a) of this regulation.

(4) "Investment grade obligation" means an interest-bearing obligation which qualifies under any of the following:

(a) The obligation is currently rated by Moody's Investors Service or by Standard and Poor's Corporation in one of the top four generic lettered rating classifications of either of those organizations;

(b) The obligation has been designated as "Yes X" or "Yes" or classified in designation (1) or (2) by the Securities Valuation Office of the National Association of Insurance Commissioners, or is determined by that office to qualify for a designation of "Yes X", "Yes", (1), or (2); or

(c) The obligation is currently given a corresponding rating by another rating agency approved by the Commissioner.

(5) "Person" means a person as defined in Insurance Article, §1-101(dd), Annotated Code of Maryland.

(6) "Rating agency" means the Securities Valuation Office of the National Association of Insurance Commissioners, Moody's Investors Service, Standard and Poor's Corporation, or any similar organization approved by the Commissioner at the request of an insurer.