PARRIS N. GLENDENING, Governor                               Ch. 11

(1)      "PREMIUMS" MEANS AMOUNTS RECEIVED ON COVERED POLICIES
OR CONTRACTS, LESS PREMIUMS, CONSIDERATIONS, AND DEPOSITS RETURNED,
AND LESS DIVIDENDS AND EXPERIENCE CREDITS.

(2)     "PREMIUMS" DOES NOT INCLUDE AMOUNTS FOR POLICIES OR
CONTRACTS, OR FOR PARTS OF POLICIES OR CONTRACTS, FOR WHICH COVERAGE IS
NOT PROVIDED UNDER § 9-403(B) OF THIS SUBTITLE.

REVISOR'S NOTE: This subsection formerly was Art. 48A, § 524(10)(i) and the
first sentence of (ii).

Defined terms: "Covered policy" § 9-401
"Policy" § 1-101

(L) RESIDENT.

"RESIDENT" MEANS A PERSON THAT RESIDES IN THE STATE WHEN A MEMBER
INSURER IS DETERMINED TO BE AN IMPAIRED INSURER OR INSOLVENT INSURER
AND TO WHOM A CONTRACTUAL OBLIGATION IS OWED.

REVISOR'S NOTE: This subsection formerly was the first sentence of Art. 48A, §
524(11).

Defined terms: "Contractual obligation" § 9-401
"Impaired insurer" § 9-401
"Insolvent insurer" § 9-401
"Person" § 1-101

(M) SUPPLEMENTAL CONTRACT.

"SUPPLEMENTAL CONTRACT" MEANS AN AGREEMENT ENTERED INTO FOR THE
DISTRIBUTION OF POLICY OR CONTRACT PROCEEDS.

REVISOR'S NOTE: This subsection formerly was Art. 48A, § 524(12).

The only change is in style.

Defined term: "Policy" § 1-101

9-402. PURPOSE OF SUBTITLE.

SUBJECT TO CERTAIN LIMITATIONS, THE PURPOSE OF THIS. SUBTITLE IS TO
PROTECT RESIDENTS WHO ARE POLICYOWNERS, INSUREDS, BENEFICIARIES,
ANNUITANTS, PAYEES, AND ASSIGNEES OF LIFE INSURANCE POLICIES, HEALTH
INSURANCE POLICIES, ANNUITY CONTRACTS, AND SUPPLEMENTAL CONTRACTS
AGAINST FAILURE IN THE PERFORMANCE OF CONTRACTUAL OBLIGATIONS DUE TO
THE IMPAIRMENT OF THE INSURER THAT ISSUED THE POLICIES OR CONTRACTS.

REVISOR'S NOTE: This section is derived without substantive change from the
first sentence of former Art. 48A, § 521.

Defined terms: "Annuity contract" § 1-101
"Contractual obligation" § 9-401
"Health insurance" § 1-101

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