2013 Maryland Code
INSURANCE
§ 5-506 - Prohibited investments and loans
§5-506.
(a) In addition to investments otherwise excluded under this article, a life insurer may not directly or indirectly invest in or lend its funds on the security of:
(1) an investment or security that the Commissioner finds is designed to evade a prohibition of this article; or
(2) issued shares of the life insurer’s capital stock, except:
(i) for the purpose of mutualization under Title 3, Subtitle 1 of this article; or
(ii) in connection with a plan approved by the Commissioner for purchase of the shares by employees or insurance producers of the life insurer.
(b) A life insurer may not directly or indirectly make a loan to an officer or director of the life insurer, except:
(1) a policy loan; or
(2) a bona fide mortgage loan on the principal residence of the officer or director that has been approved or ratified by the board of directors of the life insurer.
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.
