PARRIS N. GLENDENING, Governor                             Ch. 682

CHAPTER 682
(House Bill 663)

AN ACT concerning

Property and Casually Insurance Guaranty Corporation - Obligations

FOR the purpose of excluding from the definition of "covered claim" certain claims by
certain insureds with a certain net worth; providing that any obligation of the
Property and Casualty Insurance Guaranty Corporation to defend an insured ceases
on payment of a certain amount; providing that any obligation of the Corporation
ceases when a certain amount has been paid by the Corporation and certain other
entities in a certain manner on certain claims arising under policies of one insolvent
insurer; authorizing the Corporation to allocate certain amounts payable in a
certain manner; and generally relating to obligations of the Property and Casualty
Insurance Guaranty Corporation.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 9-301(d)
Annotated Code of Maryland
(1995 Volume and 1996 Supplement)
(As enacted by Chapter 11 of the Acts of the General Assembly of 1996)

BY adding to

Article - Insurance

Section 9-310.1

Annotated Code of Maryland

(1995 Volume and 1996 Supplement)

(As enacted by Chapter 11 of the Acts of the General Assembly of 1996)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

9-301.

(d) (1) "Covered claim" means an insolvent insurer's unpaid obligation,
including an unearned premium:

(i) that:

1. A. for insurance other than insurance that covers members
of a purchasing group, arises out of a policy of the insolvent insurer issued to a resident
or payable to a resident on behalf of an insured of the insolvent insurer; or

B. for insurance that covers members of a purchasing group,
arises out of insurance that covers the members of the purchasing group to the extent that

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