Ch. 11                                          1996 LAWS OF MARYLAND

(2)      TO THE EXTENT THAT PROPERTY OF AN INSURER IS SPECIFICALLY
ENCUMBERED, THE AMOUNT OF THE PROPERTY OR ITS PROCEEDS THAT EXCEEDS
THE AMOUNT NECESSARY TO DISCHARGE THE ENCUMBRANCE; AND

(3)      ASSETS HELD IN TRUST AND ASSETS HELD ON DEPOSIT FOR THE
SECURITY OR BENEFIT OF ALL POLICYHOLDERS AND CREDITORS IN THE UNITED
STATES.

REVISOR'S NOTE: This subsection is new language derived without substantive
change from former Art. 48A, § 132(9).

In item (1) of this subsection, the former reference to property "real,
personal, or otherwise" is deleted as unnecessary in light of the general
reference to "property".

In item (3) of this subsection, the former reference to "all policyholders" is
deleted as unnecessary in light of the reference to "all policyholders and
creditors".

As to the effect of this subsection as part of the Uniform Insurers Liquidation
Act, see § 9-202 of this subtitle.

Defined term: "Person" § 1-101

(H) IMPAIRED INSURER.

"IMPAIRED INSURER" MEANS:

(1)      A STOCK INSURER WHOSE ASSETS, TOGETHER WITH TOTAL ISSUED
AND OUTSTANDING CAPITAL STOCK AND MINIMUM SURPLUS, DO NOT EQUAL OR
EXCEED ALL LIABILITIES AND REQUIRED RESERVES;

(2)      A MUTUAL INSURER, RECIPROCAL INSURER, OR NONPROFIT
HEALTH SERVICE PLAN WHOSE ASSETS, TOGETHER WITH THE MINIMUM SURPLUS
REQUIRED UNDER THIS ARTICLE FOR AUTHORITY TO ENGAGE IN INSURANCE
BUSINESS AS A MUTUAL INSURER, RECIPROCAL INSURER, OR NONPROFIT HEALTH
SERVICE PLAN, DO NOT EQUAL OR EXCEED ALL LIABILITIES AND REQUIRED
RESERVES; OR

(3)      AS DETERMINED BY THE COMMISSIONER, AN INSURER THAT DOES
NOT HAVE THE FINANCIAL ABILITY TO PAY AN OBLIGATION WITHIN 30 DAYS AFTER
IT BECOMES DUE.

REVISOR'S NOTE: This subsection is new language derived without substantive
change from former Art. 48A, § 132(1).

The general reference to "impaired insurer" is substituted for the former
references to "'impairment', 'impaired', 'insolvency', or 'insolvent'" for brevity
and for consistency in the use of a single defined term to represent the
financial condition of an insurer subject to a delinquency proceeding under
this subtitle.

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