Ch. 11

1996 LAWS OF MARYLAND

(4) THE SUBROGATION RIGHTS OF THE CORPORATION UNDER THIS
SUBSECTION HAVE THE SAME PRIORITY AGAINST THE ASSETS OF THE IMPAIRED
INSURER AS THOSE OF THE PERSON ENTITLED TO RECEIVE BENEFITS UNDER THIS
SUBTITLE.

(J) CONTRACTUAL OBLIGATIONS OF IMPAIRED OR INSOLVENT INSURER.

(1)      SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION AND
UNLESS THE CONTRACTUAL OBLIGATIONS OF THE IMPAIRED INSURER OR
INSOLVENT INSURER ARE REDUCED UNDER SUBSECTION (E) OF THIS SECTION, THE
CONTRACTUAL OBLIGATIONS OF THE IMPAIRED INSURER OR INSOLVENT INSURER
FOR WHICH THE CORPORATION IS OR MAY BECOME LIABLE SHALL BE AS GREAT AS,
BUT NO GREATER THAN, THE CONTRACTUAL OBLIGATIONS THAT THE IMPAIRED
INSURER OR INSOLVENT INSURER WOULD HAVE HAD IN THE ABSENCE OF THE
IMPAIRMENT OR INSOLVENCY.                                         

(2)     THE CORPORATION IS NOT LIABLE FOR HEALTH CARE RECEIVED
AFTER THE DATE OF THE IMPAIRMENT OR INSOLVENCY UNLESS THE HEALTH CARE
WAS IN PROGRESS ON THE DATE OF THE IMPAIRMENT OR INSOLVENCY OR UNLESS
OTHER HEALTH CARE COVERAGE IS NOT AVAILABLE FROM ANOTHER INSURER OR
NONPROFIT HEALTH SERVICE PLAN.

(3)     BENEFITS FOR WHICH THE CORPORATION MAY BECOME LIABLE
MAY NOT EXCEED THE LESSER OF:

(I)      THE CONTRACTUAL OBLIGATIONS FOR WHICH THE INSURER
IS OR WOULD HAVE BEEN LIABLE IF IT WERE NOT AN IMPAIRED INSURER OR
INSOLVENT INSURER; OR

(II)     WITH RESPECT TO ANY ONE LIFE, REGARDLESS OF THE
NUMBER OF POLICIES OR CONTRACTS:                                               

1.       $300,000 IN LIFE INSURANCE DEATH BENEFITS, BUT NOT
MORE THAN $100,000 IN NET CASH SURRENDER AND NET CASH WITHDRAWAL
VALUES FOR LIFE INSURANCE;

2.       $300,000 IN HEALTH INSURANCE BENEFITS, INCLUDING
NET CASH SURRENDER AND NET CASH WITHDRAWAL VALUES; AND

3.       $100,000 IN THE PRESENT VALUE OF ANNUITY BENEFITS;
INCLUDING NET CASH SURRENDER AND NET CASH WITHDRAWAL VALUES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 527 (1) through (10).

In the introductory language of subsection (a) of this section, the former
introductory language "[i]n addition to the powers and duties enumerated in
other sections of this subtitle", is deleted as unnecessary surplusage.

In subsections (a)(2)(i) and (b)(2)(i) of this section, the phrase "to carry out"
is substituted for the former phrase "to effectuate" for consistency throughout
this subtitle. Similarly, insubsections(c)(1)(iii) and (d)(1)(iii) of this section,

- 330 -