May 22, 2003

The Honorable Michael E. Busch
Speaker of the House
State House
Annapolis MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, today I have vetoed House Bill 965 - Insurers - Assets and Investments - Location.

This bill alters the exceptions to the types of assets that domestic insurers with their home or executive offices in the State are required to keep in the State; repeals the 15% limitation on the amount of admitted assets that a domestic insurer may keep outside of the State; and alters the conditions under which the reserve investments of a life insurer may include derivative transactions.

Senate Bill 652, which was passed by the General Assembly and signed by me, accomplishes the same purpose. Therefore, it is not necessary for me to sign House Bill 965.

Robert L. Ehrlich, Jr.