Chapter 5: AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS
Subchapter 1: AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS
No insurance company other than a domestic real estate title insurance company or
a domestic mutual fire insurance company that is transacting only the business of
fire, marine or glass on the assessment plan may do so in this State unless it makes
and maintains a deposit with the Superintendent of Insurance, as security for all
its policyholders, of securities that are determined eligible for deposit under section
1253. The deposit must be maintained in a minimum actual market value that, exclusive
of interest, may never be less than $100,000. The deposit must be retained by the
superintendent and disposed of as directed by section 1263.
1999, c. 113, §16 (AMD)
Any admitted foreign insurance company may file with the superintendent a certificate
of the insurance supervisory official of such other jurisdiction that he holds in
trust and on deposit for benefit of all the policyholders of the company a deposit
of not less than $100,000 in such securities as are required or permitted to be deposited
with him by the laws of that jurisdiction. These securities are to be of a character
consistent with investment authority in such jurisdiction. Such certificate shall
contain a statement by said supervisory official that he is satisfied that the actual
market value of these securities is of minimum value of $100,000. No deposit shall
be required to be maintained in this State while such a deposit, if so certified,
is retained by said supervisory official.
1975, c. 77, (RPR)
The superintendent shall receive and hold in trust deposits made under this section
by any domestic insurance company in compliance with the laws of this or any other
state, to enable it to do business in this or any other state, and in like manner
shall hold deposits made by a foreign company under the laws of this State. The company
making such deposit shall be entitled to any investment income thereon and with the
superintendent's consent, if not inconsistent with the laws under which such deposit
was made, may exchange in whole or in part such securities comprising the deposit
for other approved securities of equal value.
1975, c. 77, (RPR)
The superintendent shall not authorize an alien insurer to transact insurance in
this State unless it makes in this State through the superintendent and thereafter
continuously maintains a deposit, representing funds in excess of all the insurer's
liabilities under insurance contracts in force in the United States of America, of
a fair market value in amount not less than the minimum paid-in capital stock required
under this Title of a foreign stock insurer authorized to transact like kinds of insurance
in this State. The superintendent may require additional trusteed surplus funds in
reasonable amount to secure the interest of beneficiaries under policies insured by
the alien insurer. In addition to the foregoing trusteed surplus account, an alien
insurer authorized pursuant to this Title shall establish and maintain in one or more
states of the United States a deposit or deposits of trust assets of a kind and quality
as generally required by this section. The value of the deposit or deposits shall
be at least equal to those obligations resulting from insurance in force in the United
States. The deposit or deposits shall, if located outside the State, be subject to
administration standards comparable to those contained in this Title. The deposit
shall be held in trust for the exclusive benefit of the insurer's policyholders and
creditors in the United States of America.
A. In lieu of such a deposit made or maintained in this State, the superintendent shall
accept the certificate in proper form of the insurance supervisory official having
general supervision of insurers in any other state to the effect that a deposit of
like quality and amount, or part thereof, by such insurer is being maintained for
like purposes in public custody or control pursuant to the laws of such state. [1975, c. 77, (NEW).]
1985, c. 330, §2 (AMD)
All such deposits in this State are subject to the provisions of chapter 15 (Administration
1975, c. 77, (NEW)
1969, c. 132, §1 (NEW).
1973, c. 585, §12 (AMD).
1975, c. 77, (RPR).
1985, c. 330, §2 (AMD).
1999, c. 113, §16 (AMD).
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