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LAWS OF MARYLAND

Ch. 798

CHAPTER 798

(Senate Bill 189)

AN ACT concerning

Insurance Company Liquidations — Priority
of Distribution

FOR the purpose of establishing a certain priority of
distribution in an insurance company liquidation
proceeding.

BY adding to

Article 48A — Insurance Code

Section 158A

Annotated Code of Maryland

(1972 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A — Insurance Code

158A.

CLAIMS BY POLICYHOLDERS, BENEFICIARIES, AND INSUREDS
ARISING FROM AND WITHIN THE COVERAGE OF AND NOT IN EXCESS OF
THE APPLICABLE LIMITS OF INSURANCE POLICIES AND INSURANCE
CONTRACTS ISSUED BY THE COMPANY, AND LIABILITY CLAIMS
AGAINST INSUREDS WHICH CLAIMS ARE WITHIN THE COVERAGE OF AND
NOT IN EXCESS OF THE APPLICABLE LIMITS OF INSURANCE POLICIES
AND INSURANCE CONTRACTS ISSUED BY THE COMPANY, AND CLAIMS OF
THE MARYLAND INSURANCE GUARANTY ASSOCIATION AND THE MARYLAND
LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION AND ANY
SIMILAR ORGANIZATION IS ANOTHER STATE SHALL HAVE PRIORITY IN
A LIQUIDATION PROCEEDING OVER ALL OTHER CLAIMS EXCEPT THOSE
FOR EXPENSES OF ADMINISTRATION, WAGES COVERED BY SECTION 158
AND TAXES.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1978.

Approved May 29, 1978.

CHAPTER 799