Md. Code, Insurance § 5-506
Md. Code, Insurance § 5-506
in effect(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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gin§ion=5-506&enactments=falseFetched: 10/17/2026