HARRY HUGHES, Governor                               3641

contractual obligations of the impaired insurer, and
approved by the impaired insurer and the Commissioner,

(a) Guarantee or reinsure, or cause to be
guaranteed, assumed, or reinsured, all the covered policies
OF RESIDENTS of the impaired insurer;

(3) If a domestic insurer is an impaired insurer
under an order of liquidation or rehabilitation, the
Association shall, subject to the approval of the
Commissioner,

(a) Guarantee, assume, or reinsure, or
cause to be guaranteed, assumed or reinsured, the covered
policies OF RESIDENTS of the impaired insurer;

(6) [The] EXCEPT FOR A POLICY ISSUED TO OR HELD
BY A RESIDENT, THE Association shall have not liability under
this section for any [covered] policy of a foreign or alien
insurer [whose domiciliary jurisdiction or state of entry
provides by statute or regulation, for residents of this
State protection substantially similar to that provided by
this subtitle for residents of other states].

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.

May 19, 1981
The Honorable Benjamin L. Cardin
Speaker of the House of Delegates
State House
Annapolis, Maryland 21404

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the
Maryland Constitution, today I have vetoed House Bill 1805.

This bill provides that the Life and Health Insurance
Guaranty Association is responsible for policies issued to
Maryland residents by domestic insurers as well as policies
issued to Maryland residents by foreign or alien insurers.

Senate Bill 641, which was enacted by the General
Assembly and signed by me on May 19, 1981, accomplishes the
same purpose.

Therefore it is unnecessary for me to sign House Bill
1805.

Sincerely,
Harry Hughes
Governor