May 22, 2003

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, today I have vetoed Senate Bill 165 - Insurance - Reinsurance - Ceding Insurers.

This bill alters the circumstances under which credit, as an asset or deduction from liability, may be allowed to a ceding insurer for reinsurance; repeals a provision of law that prohibits the Maryland Insurance Commissioner from approving or accepting reinsurance by a ceding domestic insurer under specified circumstances; and requires specified payments made by a reinsurer to be made directly to the ceding insurer or its domiciliary receiver except under specified circumstances.

House Bill 114, which was passed by the General Assembly and signed by me, accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate Bill 165.

Robert L. Ehrlich, Jr.