Ch. 554                                    2004 LAWS OF MARYLAND

(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 the insurance is obtained by the purchasing group, the insurance is written by an
authorized insurer, and the claim is made by a person residing or located in the State;
or

2.       arises out of a surety bond issued by the insolvent insurer
for the protection of a third party that is a resident;

(ii) that is presented on or before the last date fixed for the filing of
claims in the domiciliary delinquency proceeding as a claim to the corporation or to
the receiver in the State;

(iii) that:

1.       except for a surety bond claim, was incurred or existed
before, on, or within 30 days after the determination of insolvency; or

2.       for a surety bond claim that arises out of a surety bond
issued by a domestic insurer, was incurred or existed before, on, or within 18 months
after the determination of insolvency, whether or not the surety bond is issued for no
stated period or for a stated period; and

(iv) that arises out of a policy or surety bond of the insolvent insurer
issued for a kind of insurance to which this subtitle applies.

(2)     "Covered claim" does not include:

(i) an amount due a reinsurer, insurer, insurance pool, or
underwriting association, as a subrogation recovery or otherwise; or

(ii) an amount due that arises out of insurance covering the
members of a purchasing group if the insurance obtained by the purchasing group is
written by an unauthorized insurer.

(3)     (i) "Covered claim" does not include a first party claim by an
insured whose net worth exceeds $50,000,000 on December 31 of the year before the
year in which the insurer becomes an insolvent insurer.

(ii) For purposes of this paragraph, the net worth of an insured is
deemed to include the aggregate net worth of the insured and all of its subsidiaries
calculated on a consolidated basis.

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