HARRY HUGHES, Governor

1265

CHAPTER 437

(Senate Bill 266)

AN ACT concerning

Maryland Insurance Guaranty Association

FOR the purpose of prohibiting an insurer from asserting a
claim of subrogation against an insured of an insolvent
insurer.

BY repealing and reenacting, with amendments,

Article 48A — Insurance Code

Section 505(c)

Annotated Code of Maryland

(1972 Replacement Volume and 1978 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be repealed, amended, or enacted to read as follows: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

505.

As used in this subtitle:

(c) "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. NO INSURER SHALL ASSERT A CLAIM OF SUBROGATION
AGAINST AN INSURED OF AN INSOLVENT COMPANY BUT MAY ASSERT
ANY CLAIM IT MAY HAVE AGAINST THE RECEIVER OF THE INSOLVENT
INSURER

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.