1502                             Laws of Maryland                      [Ch. 703

first his right under such policy. Any amount payable on a covered
claim under this Act shall be reduced by the amount of any recovery
under such insurance policy.

(b) Any person having a claim which may be recovered under
more than one insurance guaranty association or its equivalent shall
seek recovery first from the Association of the place of residence of
the insured except that if it is a first party claim for damage to
property with a permanent location, he shall seek recovery first from
the Association of the location of the property. Any recovery under
this Act shall be reduced by the amount of recovery from any other
insurance guaranty association or its equivalent.

513. Detection and Prevention of Insolvencies.

(a)    THE COMMISSIONER SHALL EXAMINE ANY MEM-
BER INSURER WHO THE COMMISSIONER HAS REASONABLE
CAUSE TO BELIEVE THAT SUCH INSURER MAY BE IN-
SOLVENT OR IN A FINANCIAL CONDITION HAZARDOUS TO
THE POLICYHOLDERS OR TO THE PUBLIC. It shall be the duty
of the board of directors, upon majority vote, to notify the Commis-
sioner of any information indicating any member insurer may be
insolvent or in a financial condition hazardous to the policyholders
or the public.

(b)    The board of directors may, upon majority vote, request that
the Commissioner order an examination of any member insurer which
the board in good faith believes may be in a financial condition
hazardous to the policyholders or the public. The Commissioner
shall begin such examination within a reasonable time after receipt of
such request The ANY examination may be conducted as a National
Association of Insurance Commissioners examination or may be con-
ducted by such persons as the Commissioner designates. The cost of
such ANY examination shall be paid by the Association and the exam-
ination report shall be treated as are other examination reports. In
no event shall such examination report be released to the board of
directors prior to its becoming a public record, but this shall not
preclude the Commissioner from complying with subsection (c) of
this section. The Commissioner shall notify the board of directors
when the examination is completed. The request for an examination
shall be kept on file by the Commissioner but it shall not be open
to public inspection prior to the release of the examination report to
the public.

(c)    It shall be the duty of the Commissioner to report to the
board of directors when he has reasonable cause to believe that any
member insurer examined or being examined at the request of the
board of directors may be insolvent or in a financial condition haz-
ardous to the policyholders or the public.

(d)    The board of directors may, upon majority vote, make reports
and recommendations to the Commissioner upon any matter germane
to the solvency, liquidation, rehabilitation or conservation of any
member insurer. Such reports and recommendations shall not be
considered public documents.

(e)    The board of directors may, upon majority vote, make recom-
mendations to the Commissioner for the detection and prevention of
insurer insolvencies.