# Md. Code, Insurance § 5-506: –506

> Maryland · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-506

## Section

- **Citation:** Md. Code, Insurance § 5-506
- **Heading:** –506
- **Jurisdiction:** Maryland
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MD Code / Article gin / Title 5 / Subtitle 5 / Section 5-506

## 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.

## Nearby sections

- [Md. Code, Insurance § 5-501 §5–501.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-501.md)
- [Md. Code, Insurance § 5-502 §5–502.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-502.md)
- [Md. Code, Insurance § 5-503 §5–503.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-503.md)
- [Md. Code, Insurance § 5-504 §5–504.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-504.md)
- [Md. Code, Insurance § 5-505 §5–505.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-505.md)
- [Md. Code, Insurance § 5-506 §5–506.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-506.md)
- [Md. Code, Insurance § 5-507 §5–507.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-507.md)
- [Md. Code, Insurance § 5-508 §5–508.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-508.md)
- [Md. Code, Insurance § 5-509 §5–509.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-509.md)
- [Md. Code, Insurance § 5-510 §5–510.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-510.md)
- [Md. Code, Insurance § 5-511 §5–511.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-511.md)
- [Md. Code, Insurance § 5-512 §5–512.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-512.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T5_S5_S5-506. Check the current official text before relying on it. Not legal advice.