Ch. 11

1996 LAWS OF MARYLAND

(2)      THE PERSON PROVIDES SUITABLE PROOF, UNLESS FOR GOOD
CAUSE SHOWN THE COURT DIRECTS OTHERWISE, THAT NO FURTHER VALID CLAIM
AGAINST THE INSURER ARISING OUT OF THE CAUSE OF ACTION CAN BE MADE
OTHER THAN THE CLAIM ALREADY PRESENTED; AND

(3)      THE TOTAL LIABILITY OF THE INSURER TO ALL CLAIMANTS
ARISING OUT OF THE SAME ACT OF THE INSURED IS NOT GREATER THAN THE
MAXIMUM LIABILITY OF THE INSURER WERE THE INSURER NOT IN LIQUIDATION.

(C)     JUDGMENTS AS EVIDENCE.

(1)      A JUDGMENT AGAINST AN INSURED AFTER THE DATE OF ISSUANCE
OF A LIQUIDATION ORDER MAY NOT BE CONSIDERED IN THE LIQUIDATION
PROCEEDING AS EVIDENCE OF LIABILITY OR OF THE AMOUNT OF DAMAGES.

(2)      A JUDGMENT AGAINST AN INSURED BY DEFAULT OR COLLUSION
BEFORE ISSUANCE OF A LIQUIDATION ORDER MAY NOT BE CONSIDERED IN THE
LIQUIDATION PROCEEDING AS CONCLUSIVE EVIDENCE OF THE LIABILITY OF THE
INSURED TO A PERSON WITH A CAUSE OF ACTION AGAINST THE INSURED OR THE
AMOUNT OF DAMAGES TO WHICH THE PERSON IS ENTITLED.

(D)     CLAIMS OF SECURED CLAIMANTS.

(1)      EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A
CLAIM OF A PERSON THAT HAS A SECURED CLAIM MAY NOT BE ALLOWED AT A SUM
GREATER THAN THE DIFFERENCE BETWEEN:

(I)       THE VALUE OF THE CLAIM WITHOUT SECURITY; AND

(II)     THE VALUE OF THE SECURITY ITSELF ON:

1.        THE DATE OF ISSUANCE OF THE LIQUIDATION ORDER;
OR

2.        ANOTHER DATE SET BY THE COURT FOR DETERMINING
RIGHTS AND LIABILITIES AS PROVIDED IN SUBSECTION (E) OF THIS SECTION.

(2)      IF THE CLAIMANT SURRENDERS THE SECURITY TO THE
COMMISSIONER, THE CLAIM SHALL BE ALLOWED IN THE FULL AMOUNT FOR WHICH
IT IS VALUED.

(E)     DATE RIGHTS FIXED ON LIQUIDATION.

SUBJECT TO THE PROVISIONS OF THIS SUBTITLE ON THE RIGHTS OF
CLAIMANTS HOLDING CONTINGENT CLAIMS, AND UNLESS OTHERWISE DIRECTED
BY THE COURT, THE RIGHTS AND LIABILITIES OF AN INSURER, THE CREDITORS,
POLICYHOLDERS, STOCKHOLDERS, MEMBERS, AND SUBSCRIBERS OF THE INSURER,
AND OTHER PERSONS INTERESTED IN THE ESTATE OF THE INSURER ARE FIXED ON
THE DATE ON WHICH THE ORDER THAT DIRECTS THE LIQUIDATION OF THE
INSURER IS FILED IN THE OFFICE OF THE CLERK OF THE COURT THAT ISSUED THE
ORDER.

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