# COMAR 31.04.18.03: COMAR 31.04.18.03. Adequacy of Surplus

> Maryland · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_03

## Section

- **Citation:** COMAR 31.04.18.03
- **Heading:** COMAR 31.04.18.03. Adequacy of Surplus
- **Jurisdiction:** Maryland
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Code of Maryland Regulations / Title 31 MARYLAND INSURANCE ADMINISTRATION / Subtitle 04 INSURERS / Chapter 18 Form Filings Under the Maryland Insurance Acquisitions Disclosure and Control Act / COMAR 31.04.18.03

## Text

The factors set forth in Insurance Article, §7 –105(a), Annotated Code of Maryland, are not intended to be an exhaustive list for use in determining whether an insurer’s assets and surplus are reasonable in relation to the insurer’s outstanding liabilities and adequate to meet its financial needs. In applying the factors set forth in Insurance Article, §7 –105(a), Annotated Code of Maryland, the Commissioner shall adhere to the following principles:
A. The Commissioner may not deem any single factor as necessarily controlling;
B. The Commissioner shall consider the net effect of the factors, plus other factors deemed by the Commissioner to impact the financial condition of the insurer;
C. In comparing the surplus maintained by other insurers, the Commissioner shall consider the extent to which each of the factors varies from company to company; and
D. In determining the quality and liquidity of investments in subsidiaries, the Commissioner shall consider the individual subsidiary and may discount or disallow its valuation to the extent the individual investments so warrant.

## Nearby sections

- [COMAR 31.04.18.01 COMAR 31.04.18.01. Applicability](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_01.md)
- [COMAR 31.04.18.02 COMAR 31.04.18.02. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_02.md)
- [COMAR 31.04.18.03 COMAR 31.04.18.03. Adequacy of Surplus](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_03.md)
- [COMAR 31.04.18.04 COMAR 31.04.18.04. Forms — General Requirements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_04.md)
- [COMAR 31.04.18.05 COMAR 31.04.18.05. Forms — Incorporation by Reference, Summaries, and Omissions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_05.md)
- [COMAR 31.04.18.06 COMAR 31.04.18.06. Extension of Time to Provide Notification](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_06.md)
- [COMAR 31.04.18.07 COMAR 31.04.18.07. Pre-Acquisition Notification](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_07.md)
- [COMAR 31.04.18.08 COMAR 31.04.18.08. Statement of Filing for Acquisition of Control of a Domestic Insurer](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_08.md)
- [COMAR 31.04.18.09 COMAR 31.04.18.09. Annual Registration Statement](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_09.md)
- [COMAR 31.04.18.10 COMAR 31.04.18.10. Summary of Changes to Registration Statement and Pre-Divestiture Notification](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_10.md)
- [COMAR 31.04.18.11 COMAR 31.04.18.11. Disclaimers and Termination of Registration](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_11.md)
- [COMAR 31.04.18.12 COMAR 31.04.18.12. Transactions Subject to Prior Notice — Notice Filing and Standards](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_12.md)
- [COMAR 31.04.18.13 COMAR 31.04.18.13. Enterprise Risk Report](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_13.md)
- [COMAR 31.04.18.14 COMAR 31.04.18.14. Extraordinary Dividends and Other Distributions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_18_03. Check the current official text before relying on it. Not legal advice.