WILLIAM DONALD SCHAEFER, Governor Ch. 564

(b)  Any such policy or contract or part thereof
assumed by the impaired insurer under a contract of reinsurance,
other than reinsurance for which assumption certificates have
been issued;

(c)  Any such policy or contract issued by fraternal
benefit societies.

523.

This subtitle shall be liberally construed to effect the
purpose under § 521 OF THIS SUBTITLE which shall constitute an
aid and guide to interpretation.

524.

As used in this subtitle:

(1)   "Account" means [either] ANY of the [three] 3
accounts created under § 525 OF THIS SUBTITLE.

(2)   "[Association] CORPORATION" means the [Maryland]
Life and Health Insurance Guaranty [Association] CORPORATION
created under § 525 OF THIS SUBTITLE.

(3)   "Contractual obligation" means any obligation
under covered policies.

(4)   "Covered policy" means any policy or contract
within the scope of this subtitle under § 522 OF THIS SUBTITLE.

(5)   "Impaired insurer" means:

(a)  An insurer which, after July 1, 1971,
becomes insolvent and is placed under a final order of
liquidation, rehabilitation, or conservation by a court of
competent jurisdiction[,]; or

(b)  An insurer deemed by the Commissioner after
July 1, 1971, to be unable or potentially unable to fulfill its
contractual obligations.

(6)   "Member insurer" means any person authorized to
transact in this State any kind of insurance to which this
subtitle applies under § 522 OF THIS SUBTITLE.

(7)   "Premiums" means direct gross insurance premiums
and annuity considerations written on covered policies, less
return premiums and considerations thereon and dividends paid or
credited to policyholders on such direct business. "Premiums" do
not include premiums and considerations on contracts between
insurers and reinsurers. As used in § 528 OF THIS SUBTITLE,

- 3523 -