PARRIS N. GLENDENING, Governor

Ch. 11

seems low in light of current economic conditions. This amount was enacted
by Ch. 553, § 1, Acts of 1963.

As to the effect of subsections (a), (d), (e), (f), (g), and (h) of this section as
part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.

Defined terms: "Ancillary state" § 9-201
"Commissioner" § 1-101
"Creditor" § 9-201
"Delinquency proceeding" § 9-201
"Domiciliary state" § 9-201
"General assets" § 9-201
"Insurance contract" § 1-101
"Insurer" § 1-101
"Policy" § 1-101
"Receiver" § 9-201
"Reciprocal state" § 9-201
"Secured claim" § 9-201
"Special deposit claim" § 9-201
"State" § 9-201

9-228. DISPOSITION OF CLAIMS.

(A)     CONTINGENT AND UNLIQUIDATED CLAIMS.

(1)     SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, CONTINGENT
AND UNLIQUIDATED CLAIMS MAY NOT SHARE IN A DISTRIBUTION OF THE ASSETS
OF AN INSURER THAT HAS BEEN ADJUDICATED TO BE AN IMPAIRED INSURER BY AN
ORDER ISSUED UNDER THIS SUBTITLE.

(2)      IF PROPERLY PRESENTED, A CONTINGENT AND UNLIQUIDATED
CLAIM SHALL BE CONSIDERED AND MAY BE ALLOWED TO SHARE IF:

(I)      THE CLAIM BECOMES ABSOLUTE AGAINST THE INSURER ON
OR BEFORE THE LAST DAY FOR FILING CLAIMS AGAINST THE ASSETS OF THE
INSURER; OR

(II)    THERE IS A SURPLUS AND THE LIQUIDATION IS
SUBSEQUENTLY CONDUCTED ON THE BASIS THAT THE INSURER IS SOLVENT.

(B)     CLAIMS UNDER LIABILITY POLICIES.

IF AN INSURER HAS BEEN ADJUDICATED TO BE AN IMPAIRED INSURER, A
PERSON THAT HAS A CAUSE OF ACTION AGAINST AN INSURED OF THE INSURER
UNDER A LIABILITY POLICY ISSUED BY THE INSURER HAS THE RIGHT TO FILE A
CLAIM IN THE LIQUIDATION PROCEEDING, EVEN IF THE CLAIM MAY BE
CONTINGENT, AND THE CLAIM MAY BE ALLOWED IF:

(1) A REASONABLE INFERENCE MAY BE MADE FROM PROOF
PRESENTED ON THE CLAIM THAT THE PERSON WOULD BE ABLE TO OBTAIN A
JUDGMENT IN A CAUSE OF ACTION AGAINST THE INSURED;

- 287 -