Ch. 11                                      1996 LAWS OF MARYLAND

(I) IS INSOLVENT;

(II)    FAILED TO PAY THE SPECIAL FUND CONTRIBUTION OR
REGULATORY FEE IMPOSED ON THE SELF-INSURANCE GROUP;

(III)   FAILED TO COMPLY WITHIN THE TIME SET WITH A PROVISION
OF THIS SUBTITLE, A REGULATION ADOPTED UNDER THIS SUBTITLE, OR A LAWFUL
ORDER OF THE COMMISSIONER;

(IV)   OBTAINED ITS AUTHORITY TO OPERATE BY FRAUD,
INCLUDING MAKING A MATERIAL MISREPRESENTATION IN THE APPLICATION FOR
AUTHORITY TO OPERATE AS A SELF-INSURANCE GROUP; OR

(V)     MISAPPROPRIATED, CONVERTED, ILLEGALLY WITHHELD, OR
REFUSED TO PAY ON PROPER DEMAND MONEYS THAT HAVE BEEN ENTRUSTED TO
THE SELF-INSURANCE GROUP OR ITS ADMINISTRATOR IN ITS FIDUCIARY CAPACITY
AND THAT BELONG TO A MEMBER OF THE SELF-INSURANCE GROUP, AN EMPLOYEE
OF A MEMBER,. OR A PERSON ENTITLED TO PAYMENT; OR

(VI)   FOR ANY OTHER REASON, MUST HAVE ITS AUTHORITY TO
OPERATE SUSPENDED OR REVOKED TO PROTECT THE MEMBERS OR INSUREDS OF A
SELF-INSURANCE GROUP OR THE PUBLIC.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 609(h).

In subsection (a)(2) and (3) of this section, the references to a monetary
penalty imposed under "this subsection" are substituted for the former overly
broad reference to a monetary penalty imposed under "this subtitle" for
clarity and accuracy.

Defined terms: "Administrator" § 25-301
"Commissioner" § 1-1.01
"Person" § 1-101
"Self-insurance group" § 25-301

SUBTITLE 4. MARYLAND PROPERTY INSURANCE AVAILABILITY ACT.
25-401. DEFINITIONS.

(A)     IN GENERAL.

IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED.

REVISOR'S NOTE: This subsection is new language derived without substantive
change from the introductory language of former Art. 48A, § 478B.

The former phrase "unless the context otherwise requires" is deleted as
unnecessary because the defined terms are used exclusively as defined.

(B)     ASSOCIATION.

"ASSOCIATION" MEANS THE JOINT INSURANCE ASSOCIATION.

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