§ 5-506
154 words·~1 min read·
/md/insurance/5-506A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§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.