Maryland § 5-506
Full text of Maryland Maryland Code § 5-506, with citation guidance and answers to common questions.
§ 5-506.
(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.
Frequently Asked Questions About Maryland § 5-506
What does Maryland Code § 5-506 cover?
Section 5-506 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maryland § 5-506?
A common citation format is "Maryland Code § 5-506" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maryland law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.
How does Maryland § 5-506 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.