§ 5–506
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 5-506 (2026)
Title 5. Assets, Liabilities, Reserves, and Investments of Insurers
Subtitle 5. Investments of Life Insurers
§ 5–506LinkCopy Citation
(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.