Ch. 203

1995 LAWS OF MARYLAND

524.

As used in this subtitle:

(1)      "Account" means any of the 3 accounts created under § 525 of this
subtitle.

(2)     "Corporation" means the Life and Health Insurance Guaranty
Corporation created under § 525 of this subtitle.

(3)     "Contractual obligation" means any obligation [under covered policies]
UNDER A POLICY OR CONTRACT OR CERTIFICATE UNDER A GROUP POLICY OR
CONTRACT FOR WHICH COVERAGE IS PROVIDED UNDER § 522 OF THIS SUBTITLE.

(4)     "Covered policy" means any policy or contract within the scope of this
subtitle under § 522 of this subtitle. THE TERMS "POLICY" OR "CONTRACT ARE USED
INTERCHANGEABLY THROUGHOUT 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,] AN ORDER OF
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)      "INDIVIDUAL" MEANS ANY NATURAL PERSON COVERED UNDER AN
INDIVIDUAL POLICY OR COVERED AS A MEMBER UNDER A GROUP POLICY.

(7)      "INSOLVENT INSURER" MEANS A MEMBER INSURER THAT, AFTER
JULY 1, 1971, IS PLACED UNDER AN ORDER OF LIQUIDATION BY A COURT OF
COMPETENT JURISDICTION ON A FINDING OF INSOLVENCY.

[(6)](8) (I) "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.

(II) "MEMBER INSURER" DOES NOT INCLUDE:

1.        A HEALTH MAINTENANCE ORGANIZATION;

2.        A FRATERNAL BENEFIT SOCIETY;

3.        A MANDATORY STATE POOLING PLAN;

4.        A MUTUAL ASSESSMENT COMPANY OR ANY ENTITY THAT
OPERATES ON AN ASSESSMENT BASIS; OR

5.        AN INSURANCE EXCHANGE.

(9) "MOODY'S CORPORATE BOND YIELD AVERAGE" MEANS THE
MONTHLY AVERAGE YIELD ON CORPORATE BONDS AS PUBLISHED BY MOODY'S
INVESTORS SERVICE, INC.

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