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Ch. 564 LAWS OF MARYLAND
Corporation and the [Maryland] Life and Health Insurance Guaranty
[Association] CORPORATION and to any similar organization in
another state. (The Property and Casualty Insurance Guaranty
Corporation and the [Maryland] Life and Health INSURANCE Guaranty
[Association] CORPORATION and any similar organizations in other
states shall hereinafter be referred to collectively as the
"associations.")
Subtitle 34. Life and Health Insurance Guaranty [Association]
CORPORATION Act
520.
This subtitle shall be known and may be cited as the
[Maryland] Life and Health Insurance Guaranty [Association]
CORPORATION Act.
521.
The purpose of this subtitle is to protect residents who are
policyowners, insureds, beneficiaries, annuitants, payees, and
assignees of life insurance policies, health insurance policies,
annuity contracts, and supplemental contracts, subject to certain
limitations, against failure in the performance of contractual
obligations due to the impairment of the insurer issuing these
policies or contracts. To provide this protection:
(1) [An association] A CORPORATION of insurers is
created to enable the guaranty of payment of benefits and of
continuation of coverages;
(2) Members of the [Association] CORPORATION are
subject to assessment to provide funds to carry out the purpose
of this subtitle; and
(3) The [Association] CORPORATION is authorized to
assist the Commissioner, in the prescribed manner, in the
detection and prevention of insurer impairments.
522.
(1) This subtitle shall apply to direct life insurance
policies, health insurance policies, annuity contracts, and
contracts supplemental to life and health insurance policies and
annuity contracts issued by persons authorized to transact
insurance in this State at any time, including nonprofit health
service plans.
(2) This subtitle shall not apply to:
(a) Any such policies or contracts, or any part of
such policies or contracts, under which the risk is borne by the
policyholder;
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