When made through the Commissioner by insurers or health maintenance organizations, the Treasurer shall accept and hold in trust: deposits required under this article for a certificate of authority to engage in the insurance business in the State; deposits required under § 19-710(d)(3) of the Health - General Article for a certificate of authority to operate as a health maintenance organization; deposits of domestic insurers, foreign insurers, or alien insurers required under the laws of another state, province, or country as a prerequisite for authority to engage in the insurance business in the other state, province, or country; deposits allowed under § 5-704 of this subtitle; and deposits required under Title 6, Subtitle 3 of this article. Deposits made under subsection (a) of this section shall be in any combination of: cash; or the government securities described in § 5-510(b) or § 5-607(b)(1)(i), (ii), or (iii) of this title, as approved by the Treasurer. Deposits of government securities shall be registered, both as to principal and interest, in the name of the Treasurer as trustee.

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. 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. 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. A deposit made under this section shall be held at the expense of the insurer. The State is responsible for the safekeeping and return of all cash and government securities deposited under this section.

Deposits made under this subtitle shall be held for the following purposes: deposits required under this article for a certificate of authority to engage in the insurance business in the State shall be held for the protection of the insurer’s policyholders and creditors; deposits required under § 19-710(d)(3) of the Health - General Article for a certificate of authority to operate as a health maintenance organization shall be held for the protection of the health maintenance organization’s members and creditors; deposits of domestic insurers required under the laws of another state, province, or country as a prerequisite for authority to engage in the insurance business in the other state, province, or country shall be held for the protection of the insurer’s policyholders and creditors or for any other purpose specified in the laws requiring the deposits to be made; deposits allowed under § 5-704 of this subtitle shall be held for the protection of the insurer’s policyholders and creditors; and deposits required under Title 6, Subtitle 3 of this article shall be held for the purposes specified in the notice of the Commissioner requiring the deposits to be made.

An insurer may deposit cash or government securities eligible for deposit under § 5-701(b) of this subtitle in an amount greater than any deposit required or allowed under this article. All or part of an excess deposit may be released to a solvent insurer on its request as provided in § 5-708(a)(2) of this subtitle. An excess deposit may be released to an insolvent insurer only as provided in § 5-708(a)(3) of this subtitle.

An insurer shall deposit promptly additional cash or other or additional government securities eligible for deposit under § 5-701(b) of this subtitle in an amount sufficient to cure any deficiency if: the cash or government securities deposited by the insurer and held on deposit under this subtitle become ineligible for deposit under § 5-701(b) of this subtitle; or the market value of the deposited cash and government securities falls below the amount required under this article.

A judgment creditor or other claimant of an insurer may not levy on any of the cash or government securities held on deposit under this subtitle for the protection of the insurer’s policyholders and creditors. A judgment creditor or other claimant of an insurer may levy on a deposit required under Title 6, Subtitle 3 of this article if allowed by the notice of the Commissioner requiring the deposit to be made.

While an insurer is solvent and complies with this article, the insurer may: demand, receive, sue for, and recover the income from the cash and government securities deposited by the insurer under this subtitle; substitute for any of the deposited cash or government securities, cash or government securities eligible for deposit under § 5-701(b) of this subtitle of equivalent or greater value; and inspect, at reasonable times, any deposit made by the insurer under this subtitle.

A deposit made by an insurer under this subtitle shall be released and returned: to the insurer when substantially all liability of the insurer that the deposit secures is extinguished by authorized reinsurance or otherwise; to the insurer, if solvent, to the extent that the deposit exceeds the amount required to be deposited under this article; or on order of a court of competent jurisdiction, to the receiver, conservator, rehabilitator, or liquidator of the insurer, or to any other properly designated official who succeeds to the management and control of the insurer’s assets. Except for a release made under subsection (a)(3) of this section, a release of deposited cash or government securities may be made only on application to and written order of the Commissioner. If the release is made in good faith, the Commissioner is not personally liable for the release of any deposit or part of a deposit.

On completion of a merger or consolidation, an insurer that merges or consolidates with another insurer may: transfer to the successor insurer any deposit made by the merged or consolidated insurer under this subtitle; or have released to the successor insurer all or part of a deposit made by the merged or consolidated insurer under this subtitle that is no longer required of the successor insurer under this article. A transfer or release of a deposit under this section may be made only: with the approval of the Commissioner; and on affidavit of the officers of the merged or consolidated insurer and the successor insurer that the liabilities of the merged or consolidated insurer have been extinguished, canceled, or reinsured.