Ch. 11                                          1996 LAWS OF MARYLAND

(II) BY A COURT OF COMPETENT JURISDICTION IN A PROCEEDING
IN WHICH THE DOMICILIARY RECEIVER HAS HAD NOTICE AND AN OPPORTUNITY TO
BE HEARD.

(4) IF THE AMOUNT OF A DEFICIENCY IS NOT CONCLUSIVE, THE
AMOUNT SHALL BE DETERMINED IN A DELINQUENCY PROCEEDING IN THE
DOMICILIARY STATE.

(F)      CURRENT FINANCING MONEYS OF HOSPITALS.

(1)      CURRENT FINANCING MONEYS THAT, IN ACCORDANCE WITH
REGULATIONS ADOPTED BY THE HEALTH SERVICES COST REVIEW COMMISSION,
ARE PROVIDED BY AN INSURER, NONPROFIT HEALTH SERVICE PLAN, OR HEALTH
MAINTENANCE ORGANIZATION TO A HOSPITAL FOR DISCOUNTED HOSPITAL RATES
ARE DEEMED TO BE SECURITY FOR THE AMOUNT OF OUTSTANDING CHARGES
OWED BY THE INSURER, NONPROFIT HEALTH SERVICE PLAN, OR HEALTH
MAINTENANCE ORGANIZATION TO THE HOSPITAL FOR BILLS OR CLAIMS FOR
SERVICES PROVIDED BY THE HOSPITAL BEFORE THE DELINQUENCY PROCEEDING.

(2)      A HOSPITAL THAT RETAINS ANY CURRENT FINANCING MONEYS AS
SECURITY UNDER THIS SUBSECTION:

(I)       IS DEEMED TO BE THE OWNER OF A SECURED CLAIM AGAINST
THE INSURER, NONPROFIT HEALTH SERVICE PLAN, OR HEALTH MAINTENANCE
ORGANIZATION FOR WHICH A RECEIVER HAS BEEN APPOINTED; AND

(II)     MAY DISCHARGE ITS CLAIM AGAINST THE INSURER,
NONPROFIT HEALTH SERVICE PLAN, OR HEALTH MAINTENANCE ORGANIZATION AS
PROVIDED UNDER SUBSECTION (E) OF THIS SECTION.

(G)     CLAIMS OF RESIDENTS OF ANCILLARY STATE.

(1)      IN A DELINQUENCY PROCEEDING AGAINST AN INSURER DOMICILED
IN THE STATE, CLAIMS OWING TO RESIDENTS OF ANCILLARY STATES ARE
PREFERRED CLAIMS IF SIMILAR CLAIMS ARE PREFERRED UNDER THE LAW OF THIS
STATE.

(2)      ALL CLAIMS OWING TO RESIDENTS OF ANCILLARY STATES OR
NONRESIDENTS HAVE EQUAL PRIORITY OF PAYMENT FROM GENERAL ASSETS
REGARDLESS OF WHERE THE GENERAL ASSETS ARE LOCATED.

(H) CLAIMS OF RESIDENTS OF STATE.

IN A DELINQUENCY PROCEEDING AGAINST AN INSURER DOMICILED IN A
RECIPROCAL STATE, CLAIMS OWING TO RESIDENTS OF THIS STATE ARE PREFERRED
CLAIMS IF SIMILAR CLAIMS ARE PREFERRED UNDER THE LAW OF THAT STATE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 132(10), 150, 158, and 158A.

The Insurance Article Review Committee notes, for consideration by the
General Assembly, that the amount of compensation ($500) that must be paid
to officers and employees of an insurer under subsection (b)(1) of this section

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