PARRIS N. GLENDENING, Governor

Ch. 36

(3) THE MAXIMUM AMOUNT RECOVERABLE UNDER THIS SECTION IS
THE AMOUNT NEEDED IN EXCESS OF ALL OTHER AVAILABLE ASSETS OF THE
IMPAIRED OR INSOLVENT DOMESTIC INSURER TO PAY THE CONTRACTUAL
OBLIGATIONS OF THE IMPAIRED OR INSOLVENT DOMESTIC INSURER AND TO
REIMBURSE ANY GUARANTY FUNDS.

(B) LIABILITY.

(1)      A PERSON THAT WAS A PARENT CORPORATION, HOLDING
COMPANY, OR PERSON THAT OTHERWISE CONTROLLED THE DOMESTIC INSURER
OR AFFILIATE WHEN A DISTRIBUTION WAS PAID IS LIABLE FOR AN AMOUNT NOT
EXCEEDING THE DISTRIBUTION RECEIVED.

(2)      A PERSON THAT OTHERWISE CONTROLLED THE DOMESTIC INSURER
WHEN A DISTRIBUTION WAS DECLARED IS LIABLE FOR AN AMOUNT NOT
EXCEEDING THE AMOUNT THAT THE PERSON WOULD HAVE RECEIVED IN AN
IMMEDIATE DISTRIBUTION.

(3)      TWO OR MORE PERSONS THAT ARE LIABLE WITH RESPECT TO THE
SAME DISTRIBUTION ARE JOINTLY AND SEVERALLY LIABLE.

(4)      TO THE EXTENT THAT A PERSON LIABLE TO PAY CLAIMS UNDER
THIS SUBSECTION IS INSOLVENT OR OTHERWISE FAILS TO PAY CLAIMS DUE, THE
LIABLE PERSON'S PARENT CORPORATION OR HOLDING COMPANY AND ANY OTHER
PERSON THAT OTHERWISE CONTROLLED THE LIABLE PERSON WHEN THE
DISTRIBUTION WAS PAID ARE JOINTLY AND SEVERALLY LIABLE FOR ANY
RESULTING DEFICIENCY IN THE AMOUNT RECOVERED FROM THE DOMESTIC
INSURER'S PARENT CORPORATION OR HOLDING COMPANY OR ANY OTHER PERSON
THAT OTHERWISE CONTROLLED THE DOMESTIC INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 500B.

In subsection (a)(1) of this section, the words "was filed" are added to specify
the time in the process of liquidation or rehabilitation when the 1-year
limitation period starts.

In subsection (b)(1) and (2) of this section, the former references to
"payments" are deleted in light of the references to "distribution[s]".

In subsection (b)(4) of this section, the reference to the "liable person's"
parent corporation or holding company is substituted for the former reference
to "its" parent corporation or holding company, which referred to a person
liable to pay claims, for clarity. Similarly, the reference to the liability of the
person controlling the "liable person" is substituted for the former reference
to the person controlling the "insurer" for clarity.

Also in subsection (b)(4) of this section, the references to the "domestic
insurer's" parent corporation and holding company and other person
controlling the "domestic insurer" are substituted for the former references to
"such" parent corporation or holding company and other person controlling
"it" for clarity.

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