PARRIS N. GLENDENING, Governor

Ch. 11

(1)     IF THE COMMISSIONER DETERMINES THAT AN APPOINTED
RECEIVER IS NOT ADEQUATELY DISCHARGING THE DUTIES AND RESPONSIBILITIES
OF THE POSITION. THE COMMISSIONER MAY FILE WITH THE COURT AN
APPLICATION THAT SEEKS TO DISCHARGE THE APPOINTED RECEIVER AND TO
APPOINT THE COMMISSIONER AS CONSERVATOR, REHABILITATOR, OR RECEIVER
OR TO APPOINT A NEW APPOINTED RECEIVER.

(2)     IF THE COMMISSIONER ESTABLISHES BY A PREPONDERANCE OF THE
EVIDENCE THAT GROUNDS EXIST FOR DISCHARGE OF AN APPOINTED RECEIVER,
THE COURT SHALL GRANT THE APPLICATION OF THE COMMISSIONER TO
DISCHARGE THE APPOINTED RECEIVER AND TO APPOINT THE COMMISSIONER AS
CONSERVATOR, REHABILITATOR, OR RECEIVER OR TO APPOINT A NEW APPOINTED
RECEIVER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 133(f) and (g).

Throughout this section, the defined term "appointed receiver" is substituted
for the former references to an "appointed conservator, rehabilitator, or
receiver" for clarity and for brevity.

In the introductory language of subsection (c)(1) of this section, the word
"periodic", which formerly modified "report", is deleted in light of the more
specific requirement that the report be filed at least quarterly.

In subsection (f) of this section, the phrase "for which there is an appointed
receiver" is added to clarify that, in the context of this section, the type of
conservatorship to which the Commissioner may be a party is one for which
there is an appointed receiver.

In subsection (h)(1) and (2) of this section, the references to a "new
appointed receiver" are substituted for the former references to a "substitute
appointed conservator, rehabilitator, or receiver, other than the discharged
conservator, rehabilitator, or receiver" for clarity and brevity.

Defined terms: "Commissioner" § 1-101

"Insurance business" §§ 1-101 and 9-201
"Insurer" § 1-101
"Person" § 1-101
"Policy" § 1-101
"Receiver" § 9-201

9-214. NOTICE TO POLICYHOLDERS OF DELINQUENCY PROCEEDING.

WITHIN 15 DAYS AFTER. APPOINTMENT AS RECEIVER OR CONSERVATOR FOR
AN INSURER AGAINST WHICH A DELINQUENCY PROCEEDING HAS BEEN
COMMENCED, THE RECEIVER OR CONSERVATOR SHALL NOTIFY EACH
POLICYHOLDER OF THE INSURER, BY LETTER OR OTHER MEANS APPROVED BY THE
COURT, OF THE COMMENCEMENT OF THE DELINQUENCY PROCEEDING AND OF THE
POSSIBILITY THAT THE INSURANCE OF THE POLICYHOLDER MAY BE CANCELED.

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