Maryland § 7-105
Full text of Maryland Maryland Code § 7-105, with citation guidance and answers to common questions.
§ 7-105.
(a) For purposes of this title, in determining whether an insurer’s assets and surplus as regards policyholders are reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
(1) the size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria;
(2) the extent to which the insurer’s business is diversified among the several lines of insurance;
(3) the number and size of risks insured in each line of insurance;
(4) the geographical dispersion of the insurer’s insured risks;
(5) the nature and extent of reinsurance of the insurer’s risks;
(6) the quality, diversification, and liquidity of the insurer’s investment portfolio;
(7) the recent past and projected future trends in the size of the insurer’s surplus as regards policyholders;
(8) the surplus as regards policyholders maintained by comparable insurers;
(9) the quality and liquidity of investments in and other transactions with affiliates;
(10) the adequacy of the reserves of the insurer;
(11) the quality of the earnings of the insurer and the extent to which the reported earnings include extraordinary items; and
(12) the recent past and projected future trends in the size and quality of the insurer’s investment portfolio.
(b) The Commissioner may discount an investment or treat an investment under subsection (a)(9) of this section as a nonadmitted asset for purposes of determining the adequacy of surplus as regards policyholders whenever the investment so warrants.
Frequently Asked Questions About Maryland § 7-105
What does Maryland Code § 7-105 cover?
Section 7-105 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 § 7-105?
A common citation format is "Maryland Code § 7-105" (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 § 7-105 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.