Maryland Insurance Section 9-102

      (a)      In determining whether the continued operation of an authorized insurer engaging in insurance business in the State would be hazardous to policyholders or creditors of the authorized insurer or the general public, the Commissioner may consider:

            (1)      adverse findings reported in financial condition and market conduct examination reports;

            (2)      the Insurance Regulatory Information System and related reports of the National Association of Insurance Commissioners;

            (3)      the ratios of benefits under policies, reserve increases, commission expense, and general insurance expense, as to annual premium and net investment income and whether any of those ratios could lead to an impairment of capital and surplus;

            (4)      whether the asset portfolio of the authorized insurer, when viewed in light of current economic conditions, has sufficient value, liquidity, or diversity to ensure the ability of the authorized insurer to meet its outstanding obligations as they mature;

            (5)      the ability of an assuming reinsurer to perform, including whether the reinsurance program of the authorized insurer provides sufficient protection for its remaining surplus, after taking into account the cash flow of the authorized insurer and classes of business written by the authorized insurer and the financial condition of the assuming reinsurer;

            (6)      whether in the last 12-month period or any shorter period, the authorized insurer's operating loss, calculated to include net capital gain or loss, change in non-admitted assets, and cash dividends paid to stockholders, is greater than 50% of that part of the authorized insurer's policyholder surplus that is in excess of the minimum required surplus;

            (7)      whether an affiliate, subsidiary, or reinsurer is insolvent, threatened with insolvency, or delinquent in the payment of a monetary or other obligation;

            (8)      contingent liabilities, pledges, or guarantees that, either individually or collectively, involve a total amount that the Commissioner believes may affect the solvency of the authorized insurer;

            (9)      whether a controlling person of the authorized insurer is delinquent in transmission or payment of net premiums to the insurer;

            (10)      the age and collectibility of receivables;

            (11)      whether the management of the authorized insurer, including an officer, director, or any other person that has direct or indirect control over operation, fails to possess and demonstrate the competence, fitness, and reputation considered necessary to serve the authorized insurer in a position of control;

            (12)      whether the management of the authorized insurer has failed to respond to inquiries about the condition of the authorized insurer or has responded to an inquiry with false or misleading information;

            (13)      whether the management of the authorized insurer has:

                  (i)      filed a false or misleading sworn financial statement;

                  (ii)      released a false or misleading financial statement to a lending institution or the general public;

                  (iii)      made a false or misleading entry in the books of the authorized insurer; or

                  (iv)      omitted an entry of a material amount in the books of the authorized insurer;

            (14)      whether the authorized insurer has grown so rapidly that it lacks adequate financial and administrative capacity to meet its obligations in a timely manner; or

            (15)      whether the authorized insurer has experienced or will experience in the foreseeable future cash flow or liquidity problems.

      (b)      In determining whether the financial condition of an authorized insurer would cause its continued operation in the State to be hazardous to policyholders or creditors of the authorized insurer or the general public, the Commissioner may:

            (1)      disregard a credit or amount receivable resulting from transactions with a reinsurer that is insolvent, impaired, or otherwise subject to a delinquency proceeding;

            (2)      make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates of the authorized insurer;

            (3)      refuse to recognize the stated value of accounts receivable if the ability to collect the receivables is highly speculative because of the age of the account or financial condition of the debtor; or

            (4)      increase the liability of the authorized insurer in an amount equal to any contingent liability, pledge, or guarantee not otherwise included in the statement of liability if there is a substantial risk that the authorized insurer will have to discharge the liability, pledge, or guarantee within the next 12-month period.