Ch. 617

.1993 LAWS OF MARYLAND

plan, plan or health maintenance organization.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 150

Annotated Code of Maryland
(1991 Replacement Volume and 1992 Supplement)

BY adding to

Article 48A - Insurance Code

Section 503A and 503B

Annotated Code of Maryland

(1991 Replacement Volume and 1992 Supplement)

BY adding to

Article - Health - General                                          

Section 19-711.2 and 19-711.3

Annotated Code of Maryland

(1990 Replacement Volume and 1992 Supplement)

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

Article 48A - Insurance Code

150.

(1)     In a delinquency proceeding against an insurer domiciled in this State, claims
owing to residents of ancillary states shall be- preferred claims if like claims are preferred under
the laws of this State. All such claims owing to residents or nonresidents shall be given equal.
priority of payment from general assets regardless of where such assets are located.

(2)     In a delinquency proceeding against an insurer domiciled in a reciprocal state,
claims owing to residents of this State shall be preferred if like claims are preferred by the laws
of that state.

(3)      The owners of special deposit claims against an insurer for which a receiver is
appointed in this or any other state shall be given priority against their several special deposits
in accordance with the provisions of the statutes governing the creation and maintenance of
such deposits. If there is a deficiency in any such deposit so that the claims secured thereby are
not fully discharged therefrom, the claimants may share in the general assets, but such sharing
shall be deferred until general creditors, and also claimants against other special deposits who
have received smaller percentages from their respective special deposits, have been paid
percentages of their claims equal to the percentage paid from the special deposit.

(4)     The owner of a secured claim against an insurer for which a receiver has been
appointed in this or any other state may surrender his security and file his claim as a general
creditor, or the claim may be discharged by resort to the security, in which case the deficiency,
if any, shall be treated as a claim against the general assets of the insurer on the same basis as

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