Penalty and existing custodial agreements.

(a) Failure to comply with this chapter will result in the treatment of an insurer’s securities or investment company securities as nonadmitted assets for purposes of financial reports filed with the Department.

(b) With respect to custody agreements entered into prior to November 2, 2002, and in compliance with laws or regulations in existence immediately preceding November 2, 2002, insurers have until November 3, 2003, to achieve compliance with this chapter.