3698

VETOES

505.

As used in this subtitle:

(a)  "Account" means any one of the [five] FOUR accounts
created by § 506 OF THIS SUBTITLE.

(b)  "Association" means the Maryland Insurance Guaranty
Association created under § 506 OF THIS SUBTITLE.

(c)  (1) "Covered claims" means obligations, including
unearned premiums, of an insolvent insurer which:

[(1)] (I) 1. [arise] ARISE out of the insurance
policy contracts of the insolvent insurer issued to residents of
this State or which are payable to residents of this State on
behalf of insureds of the insolvent insurer[,]; OR

2. ARISE OUT OF SURETY BONDS ISSUED BY
THE INSOLVENT INSURER FOR THE PROTECTION OF THIRD PARTIES, WHO
ARE RESIDENTS OF THIS STATE;

[(2)] (II) [were] WERE unpaid by the insolvent
insurer[, ] ;

[(3)] (III) [are] ARE presented as a claim to the
receiver in this State or the Association on or before the last
date fixed for the filing of claims in the domiciliary
delinquency proceedings[,];

[(4)] (IV) 1.      EXCEPT FOR SURETY BOND CLAIMS, were

incurred or existed prior   to, on, or within 30 days after [the

date the receiver was     appointed, and] THE DETERMINATION OF
INSOLVENCY; OR

2. FOR SURETY BOND CLAIMS ARISING UNDER
SURETY BONDS ISSUED BY A DOMESTIC INSURER WERE INCURRED OR
EXISTED PRIOR TO, ON, OR WITHIN 18 MONTHS AFTER THE DETERMINATION
OF INSOLVENCY, WHETHER OR NOT THE SURETY BONDS ARE ISSUED FOR NO
STATED PERIOD OR FOR A STATED PERIOD; AND

[(5)] (V) [arise] ARISE out of policy contracts OR
SURETY BONDS of the insolvent insurer issued for the kinds of
insurance to which this subtitle applies.

(2) "Covered claim" does not include any amount due
any reinsurer, insurer, insurance pool, or underwriting
association, as subrogation recoveries or otherwise. No insurer
shall assert a claim of subrogation against an insured of an
insolvent INSURANCE company but may assert any claim it may have
against the receiver of the insolvent [insurer] INSURANCE
COMPANY.

(d) "Insolvent insurer" means: