The factors set forth in Insurance Article, §7–105(a), Annotated Code of Maryland, are not intended to be an exhaustive list for use in determining whether an insurer’s assets and surplus are reasonable in relation to the insurer’s outstanding liabilities and adequate to meet its financial needs. In applying the factors set forth in Insurance Article, §7–105(a), Annotated Code of Maryland, the Commissioner shall adhere to the following principles:

1. A. The Commissioner may not deem any single factor as necessarily controlling;
2. B. The Commissioner shall consider the net effect of the factors, plus other factors deemed by the Commissioner to impact the financial condition of the insurer;
3. C. In comparing the surplus maintained by other insurers, the Commissioner shall consider the extent to which each of the factors varies from company to company; and
4. D. In determining the quality and liquidity of investments in subsidiaries, the Commissioner shall consider the individual subsidiary and may discount or disallow its valuation to the extent the individual investments so warrant.

Authority: Insurance Article, §§1-101(jj), 2-109, 2-205, 2-209, and 5-901—5-917 and Title 7, Annotated Code of Maryland

Effective date:

Regulations .01 and .02 adopted as an emergency provision effective December 8, 1993 (20:26 Md. R. 2024)

Regulations .01 and .02 adopted effective March 28, 1994 (21:6 Md. R. 467)

Chapter recodified from 09.31.01 to COMAR 31.04.18 effective September 7, 1998 (25:18 Md. R. 1439)

Regulation .02 repealed and new Regulation .02 adopted effective November 7, 2016 (43:16 Md. R. 901)

Regulation .02B amended effective January 6, 2025 (51:26 Md. R. 1187)

Regulations .03—.14 adopted effective November 7, 2016 (43:16 Md. R. 901)

Regulation .15 adopted effective January 6, 2025 (51:26 Md. R. 1187)