Ch. 11

LAWS OF MARYLAND

determination of insolvency, and arising within 18 months after
the determination of insolvency whether or not the surety bonds
are issued with no stated period or for a stated period. Such
obligation shall include only that amount of each covered claim
payable to each claimant which is in excess of $100 and less than
$300,000. In no event shall the [Association] CORPORATION be
liable for an aggregate amount in excess of $1,000,000 under any
one bond. In the event covered claims are in excess of
$1,000,000 under any one bond, the [Association] CORPORATION
shall make a prorated payment on account of each covered claim in
the ratio that the covered claim bears to the total amount of all
covered claims under the bond. In no event shall the
[Association] CORPORATION be obligated to any claimants in an
amount in excess of the obligation of the insolvent insurer under
the surety bond from which the claim arises.

DRAFTER'S NOTE: This corrects an obsolete defined term in
Article 48A, §§ 505(b) and (c) and 508(a)(1).

The Maryland Insurance Guaranty Association was
replaced by the Property and Casualty Insurance
Guaranty Corporation in Ch. 161 of the Acts of 1986.

The obsolete defined term was noted by outside
counsel.

544.

(a)  All payments of benefits prescribed under § 539 OF THIS
SUBTITLE shall be made periodically as the claims therefor arise
and within 30 days after satisfactory proof thereof is received
by the. insurer subject to the following limitations:

(1)  The coverages described in § 539 OF THIS SUBTITLE.
may prescribe a period of not less than 12 months after the date
of accident within which the original claim for benefits must be
presented to the insurer.

(2)  The coverages described in § 539 OF THIS SUBTITLE
may provide that in any instance where a lapse occurs in the
period of total disability or in the medical treatment of an
injured person who has received benefits under such coverage or
coverages and such person subsequently claims additional benefits
based upon an alleged recurrence of the injury for which the
original claim for benefits was made, the insurer may require
reasonable medical proof of such alleged recurrence; provided,
that in no event shall the aggregate benefits payable to any
person exceed the maximum limits prescribed in the policy.

(b)  Payments of benefits which are not made in accordance
with this section and which are overdue shall bear simple
interest at the rate of 1.5 percent per month.

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