1624                                             LAWS OF MARYLAND                                        Ch. 440

(7) Reimburse each servicing facility for obligations

of the Association paid by the facility and for expenses incurred

by the facility while handling claims on behalf of the

Association and shall pay the other expenses of the Association

authorized by this subtitle.

510.

(b) The Commissioner may:

(1)  Require that the Association notify the insureds,

OR THE PRINCIPAL AND SPECIFIC OBLIGEES NAMED IN SURETY BONDS, of

the insolvent insurer and any other KNOWN interested parties of
the determination of insolvency and of their rights under this
subtitle. Such notification may be by mail at their last known
address, where available, but if sufficient information for
notification by mail is not available, notice by publication in a
newspaper of general circulation shall be sufficient.

(2)  Suspend or revoke, after notice and hearing, the
certificate of authority to transact insurance in this State of
any member insurer which fails to pay an assessment when due or
fails to comply with the plan of operation. As an alternative,

the Commissioner may levy a fine on any member insurer which

fails to pay an assessment when due. Such fine shall not exceed
5% of the unpaid assessment per month, except that no fine shall
be less than $100 per month.

(3)  Revoke the designation of any servicing facility
if he finds claims are being handled unsatisfactorily.

512.

(a)  Any person having a COVERED claim against an insurer,

INCLUDING SURETY, under any provision in an insurance policy OR
SURETY BOND, other than a policy of an insolvent insurer which is

also a covered claim, shall be required to exhaust first his
right under such policy OR BOND. Any amount payable on a covered
claim under this subtitle shall be reduced by the amount of any
recovery under such insurance policy OR SURETY BOND.

(b)  Any person having a claim which may be recovered under
more than one insurance guaranty association or its equivalent
shall seek recovery first:

(1)  EXCEPT WITH RESPECT TO A SURETY BOND, from the

Association of the place of residence of the insured except that
if it is a first party claim for damage to property with a
permanent location, he shall seek recovery first from the
Association of the location of the property;

(2)  WITH RESPECT TO A SURETY BOND, FROM THE
ASSOCIATION OF THE PLACE OF PERFORMANCE OF THE OBLIGATION
DESCRIBED IN THE BOND.