1534                            Laws of Maryland                      [Ch. 715

(6)    The Association shall have no liability under this section for
any covered policy of a foreign or alien insurer whose domiciliary
jurisdiction or state of entry provides by statute or regulation, for
residents of this State protection substantially similar to that pro-
vided by this Act for residents of other states.

(7)    The Association may render assistance and advice to the
Commissioner, upon his request, concerning rehabilitation, payment
of claims, continuations of coverage, or the performance of other
contractual obligations of any impaired insurer.

(8)    The Association shall have standing to appear before any
court in this State with jurisdiction over an impaired insurer con-
cerning which the Association is or may become obligated under this
Act. Such standing shall extend to all matters germane to the powers
and duties of the Association, including, but not limited to, pro-
posals for reinsuring or guaranteeing the covered policies of the
impaired insurer and the determination of the covered policies and
contractual obligations.

(9)(a) Any person receiving benefits under this Act shall be
deemed to have assigned his rights under the covered policy to the
Association to the extent of the benefits received because of this Act,
whether the benefits are payments of contractual obligations or con-
tinuation of coverage. The Association may require an assignment
to it of such rights by any payee, policy or contract owner, bene-
ficiary, insured, or annuitant as a condition precedent to the receipt
of any rights or benefits conferred by this Act upon such person. The
Association shall be subrogated to these rights against the assets of
any impaired insurer.

(b) The subrogation rights of the Association under this sub-
section shall have the same priority against the assets of the impaired
insurer as that possessed by the person entitled to receive benefits
under this Act.

(10)    The contractual obligations of the impaired insurer for
which the Association becomes or may become liable shall be as great
as, but no greater than, the contractual obligation OBLIGATIONS
of the impaired insurer would have been in the absence of an im-
pairment unless such obligations are reduced as permitted by sub-

section (5), but the Association shall have no liability with respect

to any portion of a covered policy to the extent that the death benefit

coverage on any one life exceeds an aggregate of $300,000 before

such reduction.

(11) The Association may,

(a)    Enter into such contracts as are necessary or proper to carry
out the provisions and purposes of this Act.

(b)    Sue or be sued, including taking any legal actions necessary
or proper for recovery of any unpaid assessments under Section 512.

(c)    Borrow money to effect the purposes of this Act. Any notes
or other evidence of indebtedness of the Association not in default
shall be legal investments for domestic insurers and may be carried
as admitted assets.

(d)    Employ or retain such persons as are necessary to handle
the financial transactions of the Association and to perform such
other functions as become necessary or proper under this Act.