744                                            LAWS OF MARYLAND                                      Ch. 161

duties under this subtitle. NOTWITHSTANDING THE PROVISIONS OF
THIS SECTION, THE CORPORATION IS NOT AND MAY NOT BE DEEMED A
DEPARTMENT, UNIT, AGENCY, OR INSTRUMENTALITY OF THE STATE.

518.

All proceedings in which the insolvent insurer is a party or
is obligated to defend a party in any court in this State shall
be stayed for 60 days from the date the insolvency is determined
to permit proper defense by the [Association] CORPORATION of all
pending causes of action. As to any covered claims arising from a
judgment under any decision, verdict or finding based on the
default of the insolvent insurer or its failure to defend an
insured, the [Association] CORPORATION either on its own behalf
or on behalf of such insured may apply to have such judgment,
order, decision, verdict or finding set aside by the same court
or administrator that made such judgment, order, decision,
verdict or finding and shall be permitted to defend against such
claim on the merits.

519.

(a)  The Commissioner shall by order terminate the operation
of the [Maryland Insurance Guaranty Association] PROPERTY AND
CASUALTY INSURANCE GUARANTY ASSOCIATION CORPORATION as to any
kind of insurance covered by this subtitle with respect to which
he has found, after hearing, that there is in effect a statutory
or voluntary plan which:

(1)  Is a permanent plan which is adequately funded or
for which adequate funding is provided; and

(2)  Extends, or will extend to the Maryland
policyholders and residents protection and benefits with respect
to insolvent insurers not substantially less favorable and
effective to such policyholders and residents than the protection
and benefits provided with respect to such kinds of insurance
under this subtitle.

(b)  The Commissioner shall by the same [such] order
authorize discontinuance of future payments by insurers to the
[Maryland Insurance Guaranty] Association CORPORATION with
respect to the same kinds of insurance; provided, the assessments
and payments shall continue, as necessary, to liquidate covered
claims of insurers adjudged insolvent prior to said order and the
related expenses not covered by such other plan.

(c)  In the event the operation of the [Maryland Insurance
Guaranty Association] PROPERTY AND CASUALTY INSURANCE GUARANTY
ASSOCIATION CORPORATION shall be so terminated as to all kinds of
insurance otherwise within its scope, the Association CORPORATION
as soon as possible thereafter shall distribute the balance of
moneys and assets remaining (after discharge of the functions of
the Association CORPORATION with respect to prior insurer
insolvencies not covered by such other plan, together with