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 to be held by the Commissioner for the protection of affected authorized insurers, policyholders, certificate holders, and creditors in Maryland.