HARRY HUGHES, Governor                                    1621

time the policy OR SURETY BOND was issued or when [the insured
event occurred,] THE EVENT GIVING RISE TO THE CLAIM OCCURRED; and

(2) [against] AGAINST whom a final order of
liquidation, with a finding of insolvency, has been entered by a
court of competent jurisdiction in the [insurer's] state of
domicile OF THE INSURER.

(e) (1) "Member insurer" means any insurer which:

[(1)] (I) [writes] WRITES any kind of insurance to
which this subtitle applies under § 504 OF THIS SUBTITLE
including the exchange of reciprocal or interinsurance contracts;
and

[(2)] (II) [is] IS licensed to transact insurance in
this State.

(2) [The term] "MEMBER INSURER" includes the Maryland
Automobile Insurance Fund.

(f) (1) "Net direct written premiums" means direct gross
premiums written in this State on insurance policies OR SURETY
BONDS to which this subtitle applies, less return premiums
thereon and dividends paid or credited to policyholders, OR

PRINCIPALS OR OBLIGEES OF SURETY BONDS on such direct business.

(2) "Net direct written premiums" does not include
premiums on contracts between insurers or reinsurers, or premiums
received by insurers under the Maryland Property Insurance
Availability Act.

(G) (1) "SURETY BOND", "SURETY", AND "SURETYSHIP" MEAN
INSURANCE THAT GUARANTEES THE PERFORMANCE OF CONTRACTS, OTHER
THAN INSURANCE POLICIES, AND GUARANTEE AND EXECUTE BONDS,
UNDERTAKINGS, AND CONTRACTS OF SURETYSHIP.

(2) "SURETY BOND", "SURETY", AND "SURETY SHIP" DO NOT
INCLUDE MORTGAGE GUARANTY, FINANCIAL GUARANTY, OR OTHER FORMS OF
INSURANCE OFFERING PROTECTION AGAINST INVESTMENT RISKS.

(H) "RESIDENT" MEANS:

(1)  AN INDIVIDUAL DOMICILED IN THIS STATE;

(2)  IN THE CASE OF A CORPORATION OR OTHER ENTITY THAT
IS NOT A NATURAL PERSON, A CORPORATION OR ENTITY WHOSE PRINCIPAL
PLACE OF BUSINESS IS IN THIS STATE.

506.

(A) There is [created] a nonprofit unincorporated legal
entity to be known as the Maryland Insurance Guaranty
Association.