Maryland Code, INSURANCE 3-116
Terms Used In Maryland Code, INSURANCE 3-116
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
(2) The instrument evidencing a loan or advance under this subsection shall:
(i) be approved as to form and content by the Commissioner; and
(ii) contain provisions that specify that:
1. the instrument is subordinate to policyholders, claimant and beneficiary claims, and all other classes of creditors other than surplus note holders; and
2. interest payments and principal repayments may not be made without prior approval of the Commissioner.
(3) A loan or advance under this subsection and any interest on it:
(i) is payable only out of the surplus remaining after the stock insurer or mutual insurer provides for all reserves and other liabilities; and
(ii) is not otherwise a liability or claim against the stock insurer or mutual insurer or any of its assets.
(b) (1) Proceeds of a loan or advance under this section shall be in the form of cash or other admitted assets having readily determinable values and liquidity satisfactory to the Commissioner.
(2) In each annual statement, a stock insurer or mutual insurer shall report the amount of each loan or advance made under this section.