HARRY HUGHES, Governor

2725

FOR the purpose of revising the Maryland Life and Health
Insurance Guaranty Association to protect only
residents who are policyowners, insureds,
beneficiaries, annuitants, payees, and assignees of
life insurance policies, health insurance policies,
annuity contracts and supplemental contracts, subject
to certain limitations, against failure in the
performance of contractual obligations due to the
impairment or insolvency of the insurer issuing these
policies or contracts; providing for the assessment by
the Association of authorized insurers in order to

effect this purpose; providing for credits for

assessments paid that the Association's liability on
covered policies of certain impaired insurers is
limited to residents; clarifying language; and
generally relating to the powers and duties of the
Association.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 520 through 537, inclusive 521 and 527(l)(a)

and (3)(a)
Annotated Code of Maryland
(1979 Replacement Volume and 1980 Supplement)

BY adding to

Article 48A - Insurance Code

Section 520 through 537A, inclusive

Annotated Code of Maryland

(1979 Replacement Volume and 1980 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 520 through 537, inclusive, of
Article 48A - Insurance Code, of the Annotated Code of
Maryland be repealed.

SECTION 2. AND BE IT FURTHER ENACTED, That section(s)
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A - Insurance Code

520.

THIS SUBTITLE SHALL BE KNOWN AND MAY BE CITED AS THE
MARYLAND LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT.

521.

THE PURPOSE OF THIS SUBTITLE IS TO PROTECT

POLICYOWNERS, INSUREDS, BENEFICIARIES, ANNUITANTS, PAYEES,