(a) There is an Insurance Regulation Fund that consists of:
(1) all revenue received through the imposition and collection of the
assessment fee under this subtitle;
(2) all revenue received through the imposition and collection of the fees
set forth in § 2-112 of this title;
(3) all revenue received through the imposition and collection of the fraud
prevention fee under Title 6, Subtitle 2 of this article;
(4) all revenue received through the collection of examination expenses
under § 2-208 of this title;
(5) except as provided in § 2-114(a) of this title, all other fees
received through the imposition and collection of fees set forth in
this article; and
(6) income from investments that the State Treasurer makes for the Fund.
(b) The purpose of the Fund is to pay all the costs and expenses incurred
by the Administration that are related to its responsibilities to
regulate the insurance activities of all insurers that engage in the
insurance business in this State.
(c) (1) All the costs and expenses of the Administration shall be included in
the State budget.
(2) Any expenditures from the Fund to cover costs and expenses of the
Administration may only be made:
(i) with an appropriation from the Fund approved by the General Assembly in
the annual State budget; or
(ii) by the budget amendment procedure provided for in § 7-209 of the
State Finance and Procurement Article.
(3) (i) 1. Subject to sub-subparagraph 2 of this subparagraph, if, in any fiscal
year, the amount of revenue collected by the Commissioner and deposited
into the Fund exceeds 105% of the actual appropriations for the
Administration, the excess amount shall be carried forward within the
Fund.
2. The assessment fee imposed under this subtitle shall be adjusted to
maintain the Fund at a level that does not exceed 105% of the
Administration's approved annual budget.
(ii) If, in any given fiscal year, the amount of revenue collected by the
Commissioner and deposited into the Fund is insufficient to cover the
expenditures of the Administration because of an unforeseen emergency
and expenditures are made in accordance with the budget amendment
procedure provided for in § 7-209 of the State Finance and
Procurement Article, an additional assessment for the expenditures may
be made.
(d) (1) The State Treasurer is the custodian of the Fund.
(2) The State Treasurer shall deposit payments received from the
Commissioner into the Fund.
(e) (1) The Fund is a continuing, nonlapsing fund and is not subject to §
7-302 of the State Finance and Procurement Article, and may not be
deemed a part of the General Fund of the State.
(2) No part of the Fund may revert or be credited to:
(i) the General Fund of the State; or
(ii) a special fund of the State, unless otherwise provided by law.
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