MARVIN MANDEL, Governor                           2999

TO THE MARYLAND INSURANCE GUARANTY ASSOCIATION AND
ADMINISTERED THROUGH THE APPROPRIATE ACCOUNT UNDER
SECTION 506 OF THIS SUBTITLE.

505.

As used in this subtitle:

(c) ["Covered claim" means an unpaid claim,
including one of unearned premiums, which arises out of
and is within the coverage, and not in excess of the
applicable limits of an insurance policy to which this
subtitle applies, issued by an insurer, if such insurer
becomes an insolvent insurer after July 1, 1971, and (1)
the claimant or insured is a resident of this State at
the time of the insured event; or (2) the property from
which the claim arises is permanently located in this
State, "Covered claim" shall not include any amount due
any reinsurer, insurer, insurance pool, or underwriting
association, as subrogation recoveries or otherwise,]
"COVERED CLAIMS" MEANS OBLIGATIONS, INCLUDING UNEARNED
PREMIUMS, OF AN INSOLVENT INSURER WHICH (1) 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, (2) WERE UNPAID BY THE INSOLVENT
INSURER, (3) 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) WERE INCURRED OR EXISTED
PRIOR TO, ON, OR WITHIN 30 DAYS AFTER THE DATE THE
RECEIVER WAS APPOINTED, AND (5) ARISE OUT OF POLICY
CONTRACTS OF THE INSOLVENT INSURER ISSUED FOR THE KINDS
OF INSURANCE TO WHICH THIS SUBTITLE APPLIES. "COVERED
CLAIM" DOES NOT INCLUDE ANY AMOUNT DUE ANY REINSURER,
INSURER, INSURANCE POOL, OR UNDERWRITING ASSOCIATION, AS
SUBROGATION RECOVERIES OR OTHERWISE.

506.

There is created a nonprofit unincorporated legal
entity to be known as the Maryland Insurance Guaranty
Association. All insurers defined as member insurers in
§ 505(e) shall be and remain members of the Association
as a condition of their authority to transact insurance
in this State. The Association shall perform its
functions under a plan of operation established and
approved under § 509 and shall exercise its powers
through a board of directors established under § 507.
For purposes of administration and assessment, the
Association shall be divided into [three] FOUR separate
accounts: (1) the title insurance account; (2) the
surety insurance account; (3) wet marine and
transportation insurance account; and (4) the account for