PARRIS N. GLENDENING, Governor

Ch. 11

(2) THE STATEMENTS AND ESTIMATES FILED UNDER PARAGRAPH (1)
OF THIS SUBSECTION SHALL PRESERVE THE RIGHTS OF THE CORPORATION
AGAINST THE ASSETS OF THE INSOLVENT INSURER.

(D) CLAIM OF SUBROGATION BY INSURER.

AN INSURER MAY NOT ASSERT A CLAIM OF SUBROGATION AGAINST AN
INSURED OF AN INSOLVENT INSURER, BUT MAY ASSERT A CLAIM AGAINST THE
RECEIVER OF THE INSOLVENT INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 511 and the second sentence of § 505(c)(2)(i).

In subsection (b)(3) of this section, the reference to "the court having
jurisdiction" is added to clarify that it is the court that grants priority to
expenses.

In subsection (c)(2) of this section, the reference to "the statements and
estimates filed under paragraph (1) of this subsection" is added to clarify that
the filing of the statements of covered claims as well as estimates of
anticipated claims preserve the rights of the Corporation against the assets of
the insolvent insurer.

In subsection (d) of this section, the references to an "insolvent insurer" are
substituted for the former references to an "insolvent insurance company" to
use the defined term.

Defined terms: "Corporation" § 9-301
"Covered claim" § 9-301
"Insolvent insurer" § 9-301
"Insurer" § 1-101
"Person" § 1-101
"Policy" § 1-101

9-310. EXHAUSTION OF RIGHTS; PRIORITY AND NONDUPLICATION OF RECOVERY.

(A)     EXHAUSTION OF RIGHTS.

(1)     A PERSON WITH A CLAIM AGAINST AN INSURER UNDER A POLICY
OR SURETY BOND THAT IS ALSO A COVERED CLAIM AGAINST AN INSOLVENT
INSURER SHALL EXHAUST FIRST THE PERSON'S RIGHTS UNDER THE POLICY OR
SURETY BOND.

(2)     THE AMOUNT PAYABLE ON A COVERED CLAIM UNDER THIS
SUBTITLE SHALL BE REDUCED BY THE AMOUNT OF ANY RECOVERY UNDER THE
POLICY OR SURETY BOND.

(B)     PRIORITY OF RECOVERY.

(1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A
PERSON WITH A CLAIM THAT MAY BE RECOVERED UNDER MORE THAN ONE
INSURANCE GUARANTY CORPORATION OR ITS EQUIVALENT SHALL SEEK
RECOVERY FIRST:

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