1. A. In General.

   1. (1) In addition to the unearned premium reserve and the liability established for unpaid losses and loss adjustment expenses, a financial guaranty insurer shall maintain a contingency reserve.
   2. (2) The purpose of the contingency reserve is to protect policyholders against loss during periods of extreme economic contraction.
2. B. Amount of Contingency Reserve. The contingency reserve shall be computed in accordance with COMAR 31.04.01.04.

Authority: Insurance Article, §5-1005, Annotated Code of Maryland

Effective date: September 15, 2003 (30:18 Md. R. 1260)

Regulation .01B amended as an emergency provision effective March 9, 2006 (33:7 Md. R. 667); amended permanently effective June 5, 2006 (33:11 Md. R. 954)

Regulation .04 repealed and new Regulation .04 adopted as an emergency provision effective March 9, 2006 (33:7 Md. R. 667); adopted permanently effective June 5, 2006 (33:11 Md. R. 954)

Regulation .06B amended as an emergency provision effective March 9, 2006 (33:7 Md. R. 667); amended permanently effective June 5, 2006 (33:11 Md. R. 954)

Regulation .07C amended as an emergency provision effective March 9, 2006 (33:7 Md. R. 667); amended permanently effective June 5, 2006 (33:11 Md. R. 954)