Ch. 162                                    2004 LAWS OF MARYLAND

Annotated Code of Maryland
(2003 Replacement Volume)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 9-227(c) and (d)
Annotated Code of Maryland
(2003 Replacement Volume)

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

Article - Insurance

9-227.

(a)     In this section, "preferred claim" means a claim that is given priority of
payment from the general assets of an insurer under the law of the State or the
United States.

(b)     (1) The first $500 of compensation or wages owed to an officer or
employee of an insurer for services rendered within 3 months before the
commencement of a delinquency proceeding against the insurer shall be paid before
payment of any other debt or claim.

(2)     Subject to paragraph (3) of this subsection, the Commissioner may
pay the compensation required to be paid under this subsection as soon as practicable
after commencement of the delinquency proceeding.

(3)     At all times, the Commissioner shall reserve funds that the
Commissioner believes are sufficient for expenses of administration.

(4)     The priority required under this subsection is instead of any other
similar priority that may be authorized by law as to wages or compensation.

(c)      Priority over all other claims in a liquidation proceeding, other than claims
for wages specified in subsection (b) of this section, expenses of administration, and
taxes, shall be given to:

(1)     claims by policyholders, beneficiaries, [or] insureds, OR HOLDERS OF
FUNDING AGREEMENTS ISSUED UNDER § 16-113 OF THIS ARTICLE, that arise from
and within the coverage of and are not in excess of the applicable limits of policies and
insurance contracts issued by the insurer;

(2)     liability claims against insureds that are within the coverage of and
are not in excess of the applicable limits of policies and insurance contracts issued by
the insurer; and

(3)     claims of:

(i) the Property and Casualty Insurance Guaranty Corporation;

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