ROBERT L. EHRLICH, JR., Governor                             Ch. 162

(ii) the Life and Health Insurance Guaranty Corporation; and

(iii) any similar organization in another state.

(d) Notwithstanding the provisions of subsections (b) and (c) of this section, if
there are known or potential claims due the federal government, the following shall
be the priority of distribution:

(1)     expenses of administration;

(2)     the following claims without priority among them:

(i) claims made 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;

(ii) 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                                                                     

(iii) claims of:

1.       the Property and Casualty Insurance Guaranty
Corporation;

2.       the Life and Health Insurance Guaranty Corporation; and

3.       any similar organization in another state;

(3)     claims of the federal government not included in item (2) of this
subsection;

(4)     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, which shall be
instead of any other similar priority that may be authorized by law as to wages or
compensation;

(5)     claims for taxes and debts due any state or local government; and

(6)     all other claims of general creditors not falling within any other
priority under this subsection.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2004.

Approved April 27, 2004.

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