Md. Code, Insurance § 5-506
This is the official text of Md. Code, Insurance § 5-506, part of Maryland’s Code, Insurance — regulates insurance companies and the policies they sell.
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§5–506.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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