1054                           LAWS OF MARYLAND                      [CH. 553

be insolvent by an order made pursuant to this subtitle, except that
such claim shall be considered, if properly presented, and may be
allowed to share where:

(1)   Such claim becomes absolute against the insurer on or before
the last day for filing claims against the assets of such insurer, or

(2)   There is a surplus and the liquidation is thereafter conducted
upon the basis that such insurer is solvent.

(b)   Where an insurer has been so adjudicated to be insolvent any
person who has a cause of action against an insured of such insurer
under a liability insurance policy issued by such insurer shall have
the right to file a claim in the liquidation proceeding, regardless of
the fact that such claim may be contingent, and such claim may be
allowed:

(1)   If it may be reasonably inferred from the proof presented
upon such claim that such person would be able to obtain a judgment
upon such cause of action against such insured, and

(2)   If such person shall furnish suitable proof, unless the court
for good cause shown shall otherwise direct, that no further valid
claim against such insurer arising out of his cause of action other
than those already presented can be made, and

(3)   If the total liability of such insurer to all claimants arising
out of the same act of its insured shall be no greater than its maxi-
mum liability would be were it not in liquidation.

(c)   No judgment against such an insured taken after the date of
entry of the liquidation order shall be considered in the liquidation
proceedings as evidence of liability, or of the amount of damages,
and no judgment against an insured taken by default, or by collusion
prior to the entry of the liquidation order shall be considered as
conclusive evidence' in the liquidation proceedings, either of the
liability of such insured to such person upon such cause of action or
of the amount of damages to which such person is therein entitled.

(d)   No claim of any secured claimant shall be allowed at a sum
greater than the difference between the value of the claim without
security and the value of the security itself as of the date of the entry
of the order of liquidation or such other date set by the court for
determining rights and liabilities as provided in section 156 unless
the claimant shall surrender his security to the Commissioner, in
which event the claim shall be allowed in the full amount for which
it is valued.

161. Time to File Claims.

(a)   If upon the entry of an order of liquidation under this sub-
title or at any time thereafter during liquidation proceedings the
insurer shall not be clearly solvent, the court shall, upon hearing
after such notice it deems proper, make and enter an order adjudg-
ing the insurer to be insolvent.

(b)   After the entry of the order of insolvency, regardless of any
prior notice that may have been given to creditors, the Commis-
sioner shall notify all persons who may have claims against such
insurer to file such claims with him, at a place and within the time
specified in the notice, or that such claims shall be forever barred.