Md. Code Regs. 31.13.02.02

Current through Register Vol. 51, No. 22, November 1, 2024

Section 31.13.02.02 - 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 of its political subdivisions; or

(d) General obligations of the District of Columbia or of any state of the United States.

(2) "Commissioner" means the Insurance Commissioner of the State of Maryland.

(3) "Fronting agreement" means an agreement by reinsurance or otherwise under which an authorized insurer transfers to one or more unauthorized insurers substantially the entire risk of loss under substantially:

(a) All of the insurance written by the authorized insurer in this State;

(b) All of one or more kinds, lines, types, or classes of insurance;

(c) All of the business produced through one or more agents or agencies;

(d) All of the business in a designated geographical area; or

(e) All of the business written on one or more policy forms.

(4) "Insurer", unless the context indicates otherwise, means an insurer not licensed to do life and health insurance business in Maryland and not an accredited reinsurer but qualified or proposing to qualify as a fronting reinsurer under Insurance Article, § 13-116, Annotated Code of Maryland.

Md. Code Regs. 31.13.02.02

Regulation .02 amended effective 43:22 Md. R. 1223, eff. 11/7/2016