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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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INSURANCE |
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TITLE 5. ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS |
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SUBTITLE 7. ADMINISTRATION OF DEPOSITS |
§ 5-702. Trust companies as depositories; responsibility of State
Latest version.
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(a) Trust companies as depositories. --
(1) With the consent of the Commissioner, the Treasurer may require an insurer to make deposits of cash or government securities of the kinds described in § 5-701(a) of this subtitle with a depository that the Treasurer designates to receive and hold the deposits.
(2) The Treasurer may designate as a depository any solvent trust company or other solvent financial institution that has trust powers and is domiciled in the State.
(3) The Treasurer may make an appropriate agreement with a depository to ensure the receipt, safekeeping, and release of the cash or government securities deposited under this section.
(4) A deposit made under this section shall be held at the expense of the insurer.
(b) Responsibility of State. -- The State is responsible for the safekeeping and return of all cash and government securities deposited under this section.