3640

VETOES

Life and Health Insurance Guaranty Association

FOR the purpose of altering the responsibility of the Life
and Health Insurance Guaranty Association for policies
held by nonresidents or issued by certain nondomestic
insurers; and generally relating to protecting only
certain residents.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 521 and 527(6) 527(l)(a), and (3)(a), and (6)

Annotated Code of Maryland

(1979 Replacement Volume and 1980 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be repealed, amended, or enacted to read as follows: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

521.

The purpose of this subtitle is to protect 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 of the insurer issuing such policies or
contracts. To provide this protection:

(1)  An association of insurers is created to
enable the guaranty of payment of benefits and of
continuation of coverages;

(2)  Members of the Association are subject to
assessment to provide funds to carry out the purpose of this
subtitle; and

(3)  The Association is authorized to assist the
Commissioner, in the prescribed manner, in the detection and
prevention of insurer impairments.

527.

In addition to the powers and duties enumerated in
other sections of this subtitle,

(1) If a domestic insurer is an impaired
insurer, the Association may, prior to an order of
liquidation or rehabilitation and subject to any conditions
imposed by the Association other than those which impair the