Ch. 11

1996 LAWS OF MARYLAND

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 164A.

The defined term "insurer" is substituted for the former references to
"company" for clarity.

Defined terms: "Delinquency proceeding" § 9-201
"Insurance" § 1-101

"Insurer" § 1-101                                                                               

"Receiver" § 9-201

9-215. SEIZURE ORDERS; INJUNCTIONS.

. (A) SEIZURE ORDERS — IN GENERAL.

ON APPLICATION OF THE COMMISSIONER AT ANY TIME, THE COURT MAY
ISSUE EX PARTE AN ORDER THAT:

(1)      DIRECTS THE COMMISSIONER TO TAKE POSSESSION AND CONTROL
OF ALL OR PART OF:

(I)       THE PROPERTY, BOOKS, ACCOUNTS, DOCUMENTS, AND OTHER
RECORDS OF AN INSURER; AND

(II)     THE PREMISES THAT THE INSURER OCCUPIES FOR THE
TRANSACTION OF ITS BUSINESS; AND

(2)      ENJOINS THE INSURER AND ITS OFFICERS, DIRECTORS,
STOCKHOLDERS, MEMBERS, SUBSCRIBERS, AGENTS, AND ALL OTHER PERSONS
FROM THE TRANSACTION OF ITS BUSINESS WITHOUT WRITTEN CONSENT OF THE
COMMISSIONER.

(B) SAME— DURATION.

(1)      THE COURT SHALL SPECIFY THE DURATION OF A SEIZURE ORDER
ISSUED UNDER THIS SECTION.                                                                 

(2)      THE DURATION OF THE SEIZURE ORDER SHALL BE THE TIME THAT
THE COURT CONSIDERS NECESSARY FOR THE COMMISSIONER TO DETERMINE THE
CONDITION OF THE INSURER.

(3)      ON MOTION OF THE COURT OR EITHER PARTY AND AFTER NOTICE
THAT THE COURT CONSIDERS APPROPRIATE, THE COURT MAY HOLD HEARINGS
AND EXTEND, SHORTEN, OR MODIFY THE TERMS OF THE SEIZURE ORDER.

(4)      IF THE COMMISSIONER FAILS TO COMMENCE A DELINQUENCY
PROCEEDING AFTER HAVING HAD A REASONABLE OPPORTUNITY TO DO SO, THE
COURT SHALL VACATE THE SEIZURE ORDER.

(5)      AN ORDER OF THE COURT UNDER A DELINQUENCY PROCEEDING
VACATES THE SEIZURE ORDER.

(C) SAME — EFFECT.

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