PARRIS N. GLENDENING, Governor

Ch. 11

(4) THE CORPORATION IS NOT OBLIGATED TO A POLICYHOLDER OR
CLAIMANT IN AN AMOUNT IN EXCESS OF THE OBLIGATION OF THE INSOLVENT
INSURER UNDER THE POLICY OUT OF WHICH THE CLAIM ARISES.

(B)     SAME — SURETY BONDS.

(1)      AS TO SURETY BONDS, THE CORPORATION SHALL BE OBLIGATED TO
THE EXTENT OF THE COVERED CLAIMS EXISTING ON OR BEFORE THE
DETERMINATION OF INSOLVENCY, OR ARISING WITHIN 18 MONTHS AFTER THE
DETERMINATION OF INSOLVENCY, WHETHER OR NOT THE SURETY BONDS ARE
ISSUED WITH NO STATED PERIOD OR FOR A STATED PERIOD.

(2)      THE OBLIGATION OF THE CORPORATION UNDER THIS SUBSECTION
SHALL INCLUDE ONLY THAT AMOUNT OF EACH COVERED CLAIM PAYABLE TO EACH
CLAIMANT THAT IS IN EXCESS OF $100 AND LESS THAN $300,000.

(3)      THE CORPORATION IS NOT LIABLE FOR AN AGGREGATE AMOUNT IN
EXCESS OF $1,000,000 UNDER ANY ONE SURETY BOND.

(4)      IF THE COVERED CLAIMS ARE IN EXCESS OF $1,000,000 UNDER ANY
ONE SURETY BOND, THE CORPORATION SHALL MAKE A PRORATED PAYMENT ON
ACCOUNT OF EACH COVERED CLAIM IN THE RATIO THAT THE COVERED CLAIM
BEARS TO THE TOTAL AMOUNT OF ALL COVERED CLAIMS UNDER THE SURETY
BOND.

(5)      THE CORPORATION IS NOT OBLIGATED TO A CLAIMANT IN AN
AMOUNT IN EXCESS OF THE OBLIGATION OF THE INSOLVENT INSURER UNDER THE
SURETY BOND OUT OF WHICH THE CLAIM ARISES.

(C)     CORPORATION DEEMED INSURER.

THE CORPORATION SHALL BE DEEMED THE INSURER TO THE EXTENT OF THE
CORPORATION'S OBLIGATION ON THE COVERED CLAIMS AND, TO THAT EXTENT,
SHALL HAVE THE RIGHTS, DUTIES, AND OBLIGATIONS THAT THE INSOLVENT
INSURER WOULD HAVE HAD IF THE INSURER HAD NOT BECOME INSOLVENT.

(D)     ASSESSMENTS.

(1) THE CORPORATION SHALL:

(I)      ALLOCATE CLAIMS PAID AND EXPENSES INCURRED AMONG
THE FOUR ACCOUNTS SEPARATELY; AND

(II)     ASSESS MEMBER INSURERS SEPARATELY FOR EACH ACCOUNT
IN AMOUNTS NECESSARY TO PAY:

1.        THE OBLIGATION OF THE CORPORATION UNDER
SUBSECTION (A) OR (B) OF THIS SECTION AFTER AN INSOLVENCY;

2.        THE EXPENSE OF HANDLING COVERED CLAIMS AFTER
AN INSOLVENCY; AND

3.        OTHER EXPENSES AUTHORIZED BY THIS SUBTITLE.

- 303 -