Ch. 11

1996 LAWS OF MARYLAND

Defined terms: "Commissioner" § 1-101
"Delinquency proceeding" § 9-201
"Domestic insurer" § 1-101
"Insurer" § 1-101
"Mutual insurer" § 1-101
"Policy" § 1-101
"Receiver" § 9-201
"Reciprocal insurer" § 1-101

9-226. PROCEDURES FOR FILING CLAIMS.

(A)     AFTER ORDER THAT INSURER IS IMPAIRED.

(1)      IF ON ISSUANCE OF AN ORDER OF LIQUIDATION UNDER THIS
SUBTITLE OR AT ANY TIME DURING A LIQUIDATION PROCEEDING THE INSURER IS
NOT CLEARLY SOLVENT, THE COURT, AFTER NOTICE IT CONSIDERS PROPER AND
HEARING, SHALL ISSUE AN ORDER THAT THE INSURER IS AN IMPAIRED INSURER.

(2)      NOTWITHSTANDING ANY PREVIOUS NOTICE GIVEN TO CREDITORS,
AFTER ISSUANCE OF AN ORDER UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE
COMMISSIONER SHALL NOTIFY EACH PERSON THAT MAY HAVE A CLAIM AGAINST
THE INSURER THAT THE CLAIM IS FOREVER BARRED UNLESS THE PERSON FILES
THE CLAIM WITH THE COMMISSIONER AT A PLACE AND WITHIN THE TIME
SPECIFIED IN THE NOTICE.

(3)      THE TIME SPECIFIED IN THE NOTICE:

(I)       SHALL BE AS SET BY THE COURT FOR FILING CLAIMS; BUT

(II)     MAY NOT BE LESS THAN 6 MONTHS AFTER ISSUANCE OF THE
ORDER THAT THE INSURER IS AN IMPAIRED INSURER.

(4)      THE NOTICE SHALL BE GIVEN IN THE MANNER AND FOR THE
REASONABLE PERIOD OF TIME THAT THE COURT ORDERS.

(B)     CLAIMS GENERALLY — FORM AND FILING.

(1)      EACH CLAIMANT SHALL SET FORTH IN REASONABLE DETAIL:

(I)       THE AMOUNT OF THE CLAIM OR THE BASIS ON WHICH THE
AMOUNT. CAN BE DETERMINED;

(II)     THE FACTS ON WHICH THE CLAIM IS BASED; AND

(III)   ANY PRIORITY ASSERTED BY THE CLAIMANT.

(2)      EACH CLAIM SHALL:

(I)       BE VERIFIED BY THE AFFIDAVIT OF THE CLAIMANT OR A
PERSON AUTHORIZED TO ACT ON BEHALF OF THE CLAIMANT WHO HAS
KNOWLEDGE OF THE FACTS; AND

(II)     BE SUPPORTED BY ANY DOCUMENTS THAT MAY BE MATERIAL
TO THE CLAIM.

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