"Most of these laws apply only to Securities and Exchange Commission regulated public insurance companies," Mr. Redmer commented. "Because many of Maryland's domestic insurance companies are mutual, non-profit or closely held, the rules made under the Sarbanes-Oxley Act, the SEC and other entities do not apply."

Mr. Redmer said the Maryland insurance administration's program will focus mostly on small and midsized insurers "that are not subject to SEC laws and regulations, including the Sarbanes-Oxley Act."

The purpose of this program, the commissioner added, is to make sure that board members are aware of their fiduciary responsibilities and obtain the necessary information and expertise to carry out their responsibilities.

"Our aim is to have strong, independent, knowledgeable directors," Mr. Redmer told National Underwriter. "We just want to make sure that the companies understand what board members' responsibilities are and make sure that everyone's on the same page."

"Our goal," Mr. Redmer said, "is not to punish or intimidate companies or board members." Rather, he explained, his program is designed to help strengthen insurers' internal controls and procedures. "I believe that having strong, independent and knowledgeable directors is one of the best ways to protect policyholders," Mr. Redmer said.