COMAR 31.05.10.02. Contingency Reserve Requirements

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Code of Maryland Regulations › Title 31 MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 10 Financial Guaranty Insurance › COMAR 31.05.10.02

This text was captured on Aug 14, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

Text

A. In General.

(1) In addition to the unearned premium reserve and the liability established for unpaid losses and loss adjustment expenses, a financial guaranty insurer shall maintain a contingency reserve.

(2) The purpose of the contingency reserve is to protect policyholders against loss during periods of extreme economic contraction.

B. Amount of Contingency Reserve. The contingency reserve shall be computed in accordance with COMAR 31.04.01.04 .

Cross References 31.05.10.03B(2)

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