HARRY HUGHES, Governor

733

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 243(a), 504, 505(b), 506, 519, and 550 to be under
the amended subtitle "33. Property and Casualty
Insurance Guarantee Association"

Section 158A, 162A(a), 243(a), 243H(a)(3)(vi) and (c); 504,
505(b), 506, 507 through 512, inclusive, 514 through
519, inclusive, to be under the amended subtitle
"33. Property and Casualty Insurance Guaranty
Corporation"; 550 and 568

Annotated Code of Maryland

(1979 Replacement Volume and 1985 Supplement)

BY repealing

Article 48A - Insurance Code

Section 513

Annotated Code of Maryland

(1979 Replacement Volume and 1985 Supplement)

BY adding to

Article 48A - Insurance Code

Section 519A

Annotated Code of Maryland

(1979 Replacement Volume and 1985 Supplement)

Preamble

WHEREAS, The Maryland Insurance Guaranty Association was
created by the Maryland General Assembly as a nonprofit
unincorporated legal entity to provide a mechanism for the prompt
payment of covered claims under certain insurance policies and to
avoid financial loss to claimants or policyholders because of the
insolvency of an insurer; and

WHEREAS, The people of Maryland may be misled by the name of
the Association into believing that the Association is an
instrumentality of the State which insures and guarantees the
payment of claims of insolvent insurers when that is not the
case; and

WHEREAS, References to the Maryland Insurance Guaranty
Association may be used in a misleading fashion as an inducement
in the sale of insurance; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code