2013 Maryland Code
INSURANCE
§ 3-220 - Advances of money
§3-220.
(a) This section does not apply to bank loans or to loans for which security is given.
(b) The attorney in fact of a domestic reciprocal insurer or another person may advance to the reciprocal insurer on reasonable terms any money that the reciprocal insurer requires periodically in its operations.
(c) (1) The money advanced to a reciprocal insurer:
(i) may not be treated as a liability of the reciprocal insurer; and
(ii) except on liquidation of the reciprocal insurer, may be withdrawn or repaid only out of the reciprocal insurer’s realized earned surplus in excess of its minimum required surplus.
(2) A withdrawal or repayment may be made only with the previous approval of the Commissioner.
Disclaimer: These codes may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
