Ch. 11

1996 LAWS OF MARYLAND .

9-223. LIMITATIONS PENDING REPAYMENT TO GUARANTY ASSOCIATIONS.

UNLESS AN INSURER HAS REPAID TO ALL GUARANTY ASSOCIATIONS ALL
PAYMENTS OF OR ON ACCOUNT OF THE CONTRACTUAL OBLIGATIONS OF THE
INSURER, INCLUDING ALL EXPENSES OF AND INTEREST ON THE OBLIGATIONS, OR
UNLESS A GUARANTY ASSOCIATION HAS APPROVED A PLAN OF REPAYMENT BY THE
INSURER, AN INSURER SUBJECT TO A DELINQUENCY PROCEEDING MAY NOT:

(1)      BE RELEASED FROM THE DELINQUENCY PROCEEDING UNLESS IT IS
CONVERTED INTO A JUDICIAL PROCEEDING TO REHABILITATE OR LIQUIDATE;

(2)      BE ALLOWED TO SOLICITOR ACCEPT NEW BUSINESS;

(3)      BE ALLOWED TO REQUEST OR ACCEPT THE RESTORATION OF A
SUSPENDED OR REVOKED LICENSE OR CERTIFICATE OF AUTHORITY; OR

(4)      BE RETURNED, OR HAVE ANY OF ITS ASSETS RETURNED, TO THE
CONTROL OF ITS STOCKHOLDERS OR PRIVATE MANAGEMENT..

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art, 48A, § 135B.

Defined terms: "Certificate of authority" § 1-101
"Delinquency proceeding" § 9-201
"Insurer" § 1-101

9-224. DISBURSEMENTS OF ASSETS TO GUARANTY ASSOCIATIONS.

(A)     "ASSOCIATION" DEFINED.

IN THIS SECTION, "ASSOCIATION" MEANS:

(1)      THE PROPERTY AND CASUALTY INSURANCE GUARANTY
CORPORATION;

(2)      THE LIFE AND HEALTH INSURANCE GUARANTY CORPORATION; OR

(3)      A SIMILAR ORGANIZATIONS ANOTHER STATE.

(B)     PROPOSAL FOR DISBURSEMENT—IN GENERAL.

WITHIN 120 DAYS AFTER A COURT OF THE STATE MAKES A FINAL
DETERMINATION THAT AN INSURER IS AN IMPAIRED INSURER, THE COMMISSIONER
AS RECEIVER SHALL APPLY TO THE COURT FOR APPROVAL OF A PROPOSAL TO
DISPERSE TO THE ASSOCIATION ENTITLED TO DISBURSEMENTS UNSECURED ASSETS
OUT OF THE MARSHALLED ASSETS OF THE IMPAIRED INSURER AS THOSE ASSETS
BECOME AVAILABLE.

(C)      SAME — REQUIRED PROVISIONS.

THE PROPOSAL FOR DISBURSEMENT AT A MINIMUM SHALL PROVIDE FOR:

(1) ADEQUATE CASH RESERVES FOR PAYMENT OF EXPENSES OF
ADMINISTRATION AND PRIORITY CLAIMS;

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