LAWS OF MARYLAND

"premiums" are those for the calendar year preceding the
determination of impairment.

(8) "Resident" means any person who resides in this
State at the time the impairment is determined and to whom
contractual obligations are owed.

525.

(1)  There is created a PRIVATE nonprofit, [legal entity]
NONSTOCK CORPORATION to be known as the [Maryland] Life and
Health Insurance Guaranty [Association] CORPORATION. All member
insurers shall be and remain members of the [Association]
CORPORATION as a condition of their authority to transact
insurance in this State. The [Association] CORPORATION shall
perform its functions under the plan of operation established and
approved under § 529 OF THIS SUBTITLE and shall exercise its
powers through a board of directors established under § 526 OF
THIS SUBTITLE. For purposes of administration and assessment,
the [Association] CORPORATION shall maintain [three] 3 accounts:

(a)  The health insurance account;

(b)  The life insurance account; and

(c)  The annuity account.

(2)  The [Association] CORPORATION shall come under the
immediate supervision of the Commissioner and shall be subject to
the applicable provisions of the insurance laws of this State.

(3)  EXCEPT AS OTHERWISE PROVIDED IN THIS SUBTITLE, THE
CORPORATION HAS ALL THE POWERS, PRIVILEGES, AND IMMUNITIES,
INCLUDING PERPETUAL EXISTENCE, GRANTED BY THE APPLICABLE
PROVISIONS OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE.

(4)  (A) THE CORPORATION IS NOT AND MAY NOT BE DEEMED A
DEPARTMENT, UNIT, AGENCY, OR INSTRUMENTALITY OF THE STATE FOR ANY
PURPOSE. ALL DEBTS, CLAIMS, OBLIGATIONS, AND LIABILITIES OF THE
CORPORATION, WHENEVER INCURRED, SHALL BE THE DEBTS, CLAIMS,
OBLIGATIONS, AND LIABILITIES OF THE CORPORATION ONLY AND NOT OF
THE STATE, ITS AGENCIES, INSTRUMENTALITIES, OFFICERS, OR
EMPLOYEES.

(B)  MONEYS OF THE CORPORATION MAY NOT BE CONSIDERED
PART OF THE GENERAL FUND OF THE STATE.

(C)  THE STATE MAY NOT BUDGET FOR, OR PROVIDE GENERAL
FUND APPROPRIATIONS TO, THE CORPORATION, AND THE DEBTS, CLAIMS,
OBLIGATIONS, AND LIABILITIES OF THE CORPORATION MAY NOT BE
CONSIDERED TO BE A DEBT OF THE STATE OR A PLEDGE OF THE FULL
FAITH AND CREDIT OF THE STATE.

- 3524 -

Ch. 564