Section 5-703 - Purpose of deposits. - Maryland Statutes

§ 5-703. Purpose of deposits.
 

Deposits made under this subtitle shall be held for the following purposes: 

(1) deposits required under this article for a certificate of authority to engage in the insurance business in the State shall be held for the protection of the insurer's policyholders and creditors; 

(2) deposits required under § 19-710(d)(3) of the Health - General Article for a certificate of authority to operate as a health maintenance organization shall be held for the protection of the health maintenance organization's members and creditors; 

(3) deposits of domestic insurers required under the laws of another state, province, or country as a prerequisite for authority to engage in the insurance business in the other state, province, or country shall be held for the protection of the insurer's policyholders and creditors or for any other purpose specified in the laws requiring the deposits to be made; 

(4) deposits allowed under § 5-704 of this subtitle shall be held for the protection of the insurer's policyholders and creditors; and 

(5) deposits required under Title 6, Subtitle 3 of this article shall be held for the purposes specified in the notice of the Commissioner requiring the deposits to be made. 
 

[An. Code 1957, art. 48A, §§ 50, 109, 113; 1995, ch. 36; 1997, ch. 70, § 1.]