WILLIAM DONALD SCHAEFER, Governor                   Ch. 396

Article 48A - Insurance Code

Section 617 through 630 to be under the new subtitle "46.

Risk Retention Act"
Annotated Code of Maryland
(1986 Replacement Volume)

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

Article 48A - Insurance Code

46. RISK RETENTION ACT

617.

(A)  IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B)  (1) "COMPLETED OPERATIONS LIABILITY" MEANS LIABILITY
ARISING OUT OF THE INSTALLATION, MAINTENANCE, OR REPAIR OF ANY
PRODUCT AT A SITE WHICH IS NOT OWNED OR CONTROLLED BY:

(I)  ANY PERSON WHO PERFORMS THAT WORK; OR

(II)  ANY PERSON WHO HIRES AN INDEPENDENT
CONTRACTOR TO PERFORM THAT WORK.

(2) "COMPLETED OPERATIONS LIABILITY" INCLUDES
LIABILITY FOR ACTIVITIES WHICH ARE COMPLETED OR ABANDONED BEFORE
THE DATE OF THE OCCURRANCE OCCURRENCE GIVING RISE TO THE
LIABILITY.

(C)   "DOMICILE", FOR THE PURPOSE OF DETERMINING THE STATE IN
WHICH A PURCHASING GROUP IS DOMICILED, MEANS:

(1)  FOR A CORPORATION, THE STATE IN WHICH THE
PURCHASING GROUP IS INCORPORATED; AND

(2)  FOR AN UNINCORPORATED ENTITY, THE STATE OF ITS
PRINCIPAL PLACE OF BUSINESS.

(D)  "HAZARDOUS FINANCIAL CONDITION" MEANS THAT BASED UPON
ITS PRESENT OR REASONABLY ANTICIPATED FINANCIAL CONDITION, A RISK
RETENTION GROUP, ALTHOUGH NOT YET FINANCIALLY IMPAIRED OR
INSOLVENT, IS UNLIKELY TO BE ABLE TO:

(1)  MEET OBLIGATIONS TO POLICYHOLDERS WITH RESPECT TO
KNOWN CLAIMS AND REASONABLY ANTICIPATED CLAIMS; OR

(2)  PAY OTHER OBLIGATIONS IN THE NORMAL COURTS COURSE
OF BUSINESS.

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