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2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-304 - Corporation Established; Membership; Plan of Operation; Accounts; Status

(a)    (1)    There is a Property and Casualty Insurance Guaranty Corporation.
(2)    The Corporation is a private, nonprofit, nonstock corporation.
(b)    As a condition of its authority to transact insurance business in the State, each member insurer must be and remain a member of the Corporation.
(c)    The Corporation shall:
(1)    perform its functions in accordance with a plan of operation established and approved under § 9–307 of this subtitle; and
(2)    exercise its powers through a Board of Directors established under § 9–305 of this subtitle.
(d)    For administration and assessment purposes, the Corporation shall be divided into the following four separate accounts:
(1)    the title insurance account;
(2)    the motor vehicle insurance account;
(3)    the workers’ compensation account; and
(4)    the account for all other insurance to which this subtitle applies.
(e)    Except as otherwise provided in this subtitle, the Corporation has perpetual existence and the powers, privileges, and immunities granted by the applicable provisions of the Corporations and Associations Article.
(f)    (1)    The Corporation is not and may not be deemed a department, unit, agency, or instrumentality of the State for any purpose.
(2)    All debts, claims, obligations, and liabilities of the Corporation, whenever incurred, shall be the debts, claims, obligations, and liabilities of the Corporation only and not of the State or the State’s agencies, instrumentalities, officers, or employees.
(g)    (1)    The money of the Corporation is not part of the General Fund of the State.
(2)    The State may not budget for or provide General Fund appropriations to the Corporation.
(3)    The debts, claims, obligations, and liabilities of the Corporation are not a debt of the State or a pledge of the credit of the State.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-305 - Board of Directors

(a)    (1)    The Board of Directors of the Corporation consists of at least five members but not more than nine members.
(2)    The members of the Board shall be elected from among the member insurers.
(3)    The terms of the members of the Board shall be as set by the plan of operation.
(4)    A vacancy on the Board shall be filled for the remainder of the term by a majority vote of the remaining members of the Board.
(b)    (1)    The Board of Directors shall elect a chairman from among its members and appoint three of its members to be an executive committee.
(2)    The Board may elect other officers.
(c)    When electing members of the Board of Directors or filling vacancies on the Board, consideration shall be given to, among other things, whether all member insurers are fairly represented.
(d)    A member of the Board of Directors may be reimbursed by the Corporation for expenses incurred in carrying out duties as a member of the Board.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-307 - Plan of Operation

(a)    (1)    (i)    The Corporation shall submit to the Commissioner a plan of operation and any amendments to it necessary or suitable to ensure the fair, reasonable, and equitable administration of the Corporation.
(ii)    The plan of operation and any amendments to it take effect when approved in writing by the Commissioner.
(2)    (i)    If the Corporation fails to submit suitable amendment to the plan of operation, the Commissioner, after notice and hearing, shall adopt reasonable regulations as necessary or advisable to carry out this subtitle.
(ii)    Regulations adopted under this paragraph shall continue in effect until modified by the Commissioner or superseded by an amendment to the plan of operation submitted by the Corporation and approved by the Commissioner.
(b)    Each member insurer shall comply with the plan of operation.
(c)    The plan of operation shall:
(1)    establish procedures for the performance of the powers and duties of the Corporation specified in § 9-306 of this subtitle;
(2)    establish procedures for handling the assets of the Corporation;
(3)    establish the amounts to be reimbursed and the method of reimbursing members of the Board of Directors under § 9-305 of this subtitle;
(4)    establish procedures for filing claims with the Corporation;
(5)    establish acceptable forms of proof of covered claims;
(6)    establish regular places and times for meetings of the Board of Directors;
(7)    establish procedures for keeping records of the financial transactions of the Corporation, its agents, and the Board of Directors;
(8)    provide that a member insurer that is aggrieved by a final action or decision of the Corporation may appeal to the Commissioner within 30 days after the action or decision; and
(9)    contain any additional provisions necessary or proper to perform the powers and duties of the Corporation.
(d)    (1)    Notice of a claim to the receiver or liquidator of an insolvent insurer shall be deemed notice to the Corporation or its agent.
(2)    The receiver or liquidator periodically shall submit to the Corporation a list of claims of which the receiver or liquidator has received notice.
(e)    (1)    The plan of operation may provide that any or all of the powers and duties of the Corporation, except those under § 9-306(d) and (f)(2) of this subtitle, may be delegated to a person that performs or will perform functions similar to those of the Corporation or its equivalent.
(2)    A person to which powers and duties are delegated under the plan of operation shall be:
(i)    reimbursed as a servicing facility would be reimbursed; and
(ii)    paid for its performance of the functions of the Corporation.
(3)    A delegation under this subsection may:
(i)    take effect only with the approval of the Board of Directors and Commissioner; and
(ii)    be made only to a person that extends protection not substantially less favorable and effective than that provided by this subtitle.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-308 - Duties and Powers of Commissioner; Judicial Review

(a)    The Commissioner:
(1)    shall notify the Corporation of the existence of an insolvent insurer not later than 3 days after the Commissioner receives notice of the determination of insolvency; and
(2)    on request of the Board of Directors, shall provide the Corporation with a statement of the net direct written premiums of each member insurer.
(b)    (1)    (i)    The Commissioner may require that the Corporation notify each insured, or each principal and specific obligee named in a surety bond, of each insolvent insurer and any other known interested party of the determination of insolvency and of their rights under this subtitle.
(ii)    The notification required under subparagraph (i) of this paragraph may be by mail at the last known address of the interested party, but if sufficient information for notification by mail is not available, notification by publication in a newspaper of general circulation is sufficient.
(2)    The Commissioner:
(i)    after notice and hearing, may suspend or revoke the certificate of authority of a member insurer that fails to pay an assessment when due or fails to comply with the plan of operation; or
(ii)    subject to paragraph (3) of this subsection, may impose a penalty on a member insurer that fails to pay an assessment when due.
(3)    A penalty imposed under paragraph (2)(ii) of this subsection may not exceed 5% of the unpaid assessment per month and may not be less than $100 per month.
(4)    If the Commissioner determines that claims are being handled unsatisfactorily, the Commissioner may revoke the designation of a person as a servicing facility.
(c)    A final action or order of the Commissioner under this subtitle is subject to judicial review.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-309 - Effect of Payment of Claims by Corporation; Statements of Claims; Subrogation

(a)    (1)    A person recovering from the Corporation under this subtitle is deemed to have assigned to the Corporation the person’s rights under the policy to the extent of the person’s recovery from the Corporation.
(2)    Each insured or claimant seeking the protection of this subtitle shall cooperate with the Corporation to the same extent as the insured or claimant would have been required to cooperate with the insolvent insurer.
(3)    The Corporation does not have a cause of action against the insured of the insolvent insurer for any sum the Corporation has paid out except for a cause of action that the insolvent insurer would have had if the sum had been paid by the insolvent insurer.
(4)    Payment of a claim of the Corporation does not operate to reduce the liability of an insured to the receiver, liquidator, or statutory successor for an unpaid assessment of an insolvent insurer operating on a plan with assessment liability.
(b)    (1)    The receiver, liquidator, or statutory successor of an insolvent insurer is bound by the settlement of a covered claim by the Corporation or its representatives.
(2)    The court having jurisdiction shall grant a covered claim priority equal to that to which the claimant would have been entitled in the absence of this subtitle against the assets of the insolvent insurer.
(3)    The court having jurisdiction shall grant the expenses of the Corporation or similar organization in handling claims the same priority as the liquidator’s expenses.
(c)    (1)    The Corporation periodically shall file with the receiver or liquidator of the insolvent insurer:
(i)    statements of the covered claims paid by the Corporation; and
(ii)    estimates of anticipated claims on the Corporation.
(2)    The statements and estimates filed under paragraph (1) of this subsection shall preserve the rights of the Corporation against the assets of the insolvent insurer.
(d)    An insurer may not assert a claim of subrogation against an insured of an insolvent insurer, but may assert a claim against the receiver of the insolvent insurer.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-310 - Exhaustion of Rights; Priority and Nonduplication of Recovery

(a)    (1)    A person with a claim against an insurer under a policy or surety bond that is also a covered claim against an insolvent insurer shall exhaust first the person’s rights under the policy or surety bond.
(2)    The amount payable on a covered claim under this subtitle shall be reduced by the amount of any recovery under the policy or surety bond.
(b)    (1)    Except as provided in paragraph (2) of this subsection, a person with a claim that may be recovered under more than one insurance guaranty corporation or its equivalent shall seek recovery first:
(i)    if the claim is a first party claim for damage to property with a permanent location, from the corporation or its equivalent of the location of the property; and
(ii)    if the claim is any other claim, from the corporation or its equivalent of the residence of the insured.
(2)    A person with a claim under a surety bond that may be recovered under more than one insurance guaranty corporation or its equivalent shall seek recovery first from the corporation or its equivalent of the place of performance of the obligation described in the surety bond.
(c)    A recovery under this subtitle shall be reduced by the amount of recovery from any other insurance guaranty corporation or its equivalent.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-310.1 - Obligations of Corporation to Cease

(a)    Any obligation of the Corporation to defend an insured shall cease on payment by the Corporation, by settlement releasing the insured or on a judgment, of an amount equal to the lesser of the Corporation’s covered claim obligation limit or the applicable policy limit.
(b)    (1)    In this subsection, “affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person.
(2)    Notwithstanding any other provision of this subtitle, except for a claim for benefits under workers’ compensation coverage, any obligation of the Corporation to any and all persons shall cease when $10,000,000 has been paid in the aggregate:
(i)    by the Corporation and one or more insurance guaranty corporations or associations similar to the Corporation in other states or property casualty insurance security funds that obtain contributions from insurers on a pre-insolvency basis in other states;
(ii)    to or on behalf of an insured and its affiliates; and
(iii)    on covered claims or on claims allowed arising under one or more policies of one insolvent insurer.
(3)    If the Corporation determines that there may be more than one claimant with a covered claim or allowed claim against the Corporation or any insurance guaranty corporations or associations similar to the Corporation in other states or any property casualty insurance security funds in other states, arising under one or more policies of one insolvent insurer, the Corporation may establish a plan to allocate amounts payable by the Corporation in the manner that the Corporation in its discretion considers equitable.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-311 - Examination and Regulation; Financial Report

(a)    The Corporation is subject to examination and regulation by the Commissioner.
(b)    By March 30 of each year, the Board of Directors shall submit to the Commissioner a financial report for the preceding calendar year in the form that the Commissioner approves.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-313 - Recoupment of Assessments Paid by Member Insurers

The rate and premium charged for a policy or surety bond to which this subtitle applies:
(1)    shall include an amount sufficient to recoup, over a reasonable length of time of not less than 3 years, the amount paid to the Corporation by the member insurer less any amount returned to the member insurer by the Corporation; and
(2)    may not be considered excessive because the rate and premium contain an amount reasonably calculated to recoup assessments paid by the member insurer.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-314 - Immunity From Liability; Corporation Independent From State

(a)    A member insurer, the Corporation or its agents or employees, the Board of Directors, and the Commissioner or the Commissioner’s representatives shall have the immunity from liability described in § 5-412 of the Courts Article.
(b)    Notwithstanding subsection (a) of this section, the Corporation is not and may not be deemed a department, unit, agency, or instrumentality of the State.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-315 - Stay of Proceedings; Default Judgments

(a)    To allow proper defense by the Corporation of pending causes of action, each proceeding in which an insolvent insurer is a party or is obligated to defend a party in a court in the State shall be stayed for 60 days after the date of the determination of insolvency.
(b)    As to a covered claim arising from a judgment under an order, decision, verdict, or finding based on the default of the insolvent insurer or its failure to defend an insured, the Corporation, on its own behalf or on behalf of the insured, may:
(1)    apply to have the judgment, order, decision, verdict, or finding set aside by the same court or administrator that made it; and
(2)    defend against the covered claim on the merits.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-316 - Termination of Corporation; Expiration of Subtitle

(a)    The Commissioner shall terminate by order the operation of the Corporation as to a kind of insurance covered by this subtitle for which the Commissioner has found after a hearing that there is in effect a statutory or voluntary plan:
(1)    that is permanent and is adequately funded or for which adequate funding is provided; and
(2)    that extends or will extend to policyholders and residents protection and benefits with respect to insolvent insurers not substantially less favorable and effective to those policyholders and residents than the protection and benefits provided under this subtitle for that kind of insurance.
(b)    (1)    By an order issued under subsection (a) of this section, the Commissioner shall authorize insurers to stop paying the Corporation as to the same kind of insurance for which the operation of the Corporation is terminated under the order.
(2)    Notwithstanding paragraph (1) of this subsection, assessments and payments shall continue as necessary to liquidate covered claims of insurers determined to be insolvent before the order and to liquidate the related expenses not covered by the other plan.
(c)    (1)    If the Commissioner orders the termination of the operation of the Corporation as to all kinds of insurance within its scope, the Corporation as soon as possible after the termination shall:
(i)    discharge first the functions of the Corporation as to prior insurer insolvencies not covered by the other plan, including the payment of expenses related to the discharge of these functions; and
(ii)    distribute, in accordance with paragraph (2) of this subsection, the balance of money and assets remaining to the insurers that are then writing in the State policies of the kinds of insurance covered by this subtitle and that had made payments to the Corporation.
(2)    The Corporation shall distribute the balance of money and assets remaining to the insurers pro rata on the basis of the aggregate of the payments made by the respective insurers during the period of 5 years immediately preceding the date of the order.
(3)    When the distribution as to all kinds of insurance covered by this subtitle is complete, this subtitle shall terminate.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-402 - Purpose of Subtitle

Subject to certain limitations, the purpose of this subtitle is to protect persons specified in § 9–403(a) through (f) of this subtitle who are policy owners, contract owners, certificate holders, beneficiaries, enrollees, payees, and assignees of life, health, annuity, and supplemental policies, plans, or contracts specified in § 9–403(g) of this subtitle against failure in the performance of contractual obligations due to the impairment or insolvency of the member insurer that issued the policies, plans, or contracts.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-404 - Construction

(a)    (1)    This subtitle shall be liberally construed to carry out its purpose as specified in § 9–402 of this subtitle.
(2)    Section 9–402 of this subtitle is an aid and guide to the interpretation of this subtitle.
(b)    The words “policy” and “contract” are used interchangeably throughout this subtitle.
(c)    A person may be a resident of only one state. For a person other than an individual, that state is the state in which its principal place of business is located.
(d)    (1)    Subject to paragraph (2) of this subsection, for a plan sponsor or person other than an individual, its principal place of business is the single state in which the individuals who establish policy for the direction, control, and coordination of the operations of the entity, as a whole, primarily exercise that function, as determined by the Corporation in its reasonable judgment by considering the following factors:
(i)    the state in which the primary executive and administrative headquarters of the entity is located;
(ii)    the state in which the principal office of the chief executive officer of the entity is located;
(iii)    the state in which the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings;
(iv)    the state in which the executive or management committee of the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings;
(v)    the state from which the management of the overall operations of the entity is directed; and
(vi)    for a benefit plan sponsored by affiliated companies comprising a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business, as determined under the factors in this paragraph.
(2)    For a plan sponsor, if more than 50% of the participants in the benefit plan are employed in a single state, that state is deemed to be the principal place of business of the plan sponsor.
(3)    For an association, a committee, a joint board of trustees, or any other similar group of representatives of the parties who establish or maintain a benefit plan when there is no specific or clear designation of a principal place of business, the principal place of business is the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-405 - Corporation Established; Membership; Plan of Operation; Accounts; Supervision by Commissioner; Status

(a)    (1)    There is a Life and Health Insurance Guaranty Corporation.
(2)    The Corporation is a private, nonprofit, nonstock corporation.
(3)    The Corporation is established to enable the guaranty of payment of benefits and continuation of coverages.
(b)    As a condition of its authority to transact insurance or health maintenance organization business in the State, each member insurer must be and remain a member of the Corporation.
(c)    The Corporation shall:
(1)    perform its functions in accordance with the plan of operation established and approved under § 9–410 of this subtitle; and
(2)    exercise its powers through the Board of Directors established under § 9–406 of this subtitle.
(d)    For administration and assessment purposes, the Corporation shall maintain:
(1)    the health account;
(2)    the life insurance account; and
(3)    the annuity account.
(e)    The Corporation is under the immediate supervision of the Commissioner and subject to the applicable insurance laws of the State.
(f)    Except as otherwise provided in this subtitle, the Corporation has perpetual existence and the powers, privileges, and immunities granted by the applicable provisions of the Corporations and Associations Article.
(g)    (1)    The Corporation is not and may not be deemed a department, unit, agency, or instrumentality of the State for any purpose.
(2)    All debts, claims, obligations, and liabilities of the Corporation, whenever incurred, shall be the debts, claims, obligations, and liabilities of the Corporation only and not of the State or the State’s agencies, instrumentalities, officers, or employees.
(h)    (1)    The money of the Corporation is not part of the General Fund of the State.
(2)    The State may not budget for or provide General Fund appropriations to the Corporation.
(3)    The debts, claims, obligations, and liabilities of the Corporation are not a debt of the State or a pledge of the credit of the State.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-406 - Board of Directors

(a)    (1)    The Board of Directors of the Corporation consists of at least 7 members but not more than 11 members.
(2)    The members of the Board shall be elected from among the member insurers.
(3)    The terms of the members of the Board shall be as set by the plan of operation.
(4)    A vacancy on the Board shall be filled for the remainder of the term by a majority vote of the remaining members of the Board.
(b)    (1)    The Board of Directors shall elect a chairman and appoint an executive committee.
(2)    The Board may elect other officers.
(c)    When electing members of the Board of Directors or filling vacancies on the Board, consideration shall be given to, among other things, whether all member insurers are fairly represented.
(d)    A member of the Board of Directors:
(1)    may be reimbursed by the Corporation for expenses incurred in carrying out duties as a member of the Board; but
(2)    may not otherwise receive compensation from the Corporation for the member’s service.
(e)    (1)    The Board of Directors has general oversight authority over funds provided under this subtitle to the Board of Directors or Corporation.
(2)    At any time or in any manner as the Board may direct, a receiver, liquidator, rehabilitator, or conservator appointed under this subtitle shall make a detailed accounting of expenditures to the Board.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-408 - Additional Powers of Corporation

The Corporation may:
(1)    enter into contracts that are necessary or proper to carry out the provisions and purposes of this subtitle;
(2)    sue or be sued and take any other legal actions necessary or proper for the recovery of unpaid assessments under § 9–409 of this subtitle;
(3)    borrow money to carry out the purposes of this subtitle, provided that any notes or other evidences of indebtedness of the Corporation not in default are legal investments for domestic insurers and may be carried as admitted assets;
(4)    employ or retain persons as necessary to handle the financial transactions of the Corporation and perform other functions that are necessary or proper under this subtitle;
(5)    negotiate and contract with liquidators, rehabilitators, conservators, or ancillary receivers to carry out the powers and duties of the Corporation;
(6)    take any legal action necessary to avoid payment of improper claims;
(7)    for the purposes of this subtitle and to the extent approved by the Commissioner, exercise the powers of a domestic life insurer, health insurer, or health maintenance organization, except that the Corporation may not issue policies or contracts other than those issued to perform the contractual obligation of an impaired insurer or insolvent insurer;
(8)    in accordance with the terms and conditions of the policy or contract, file for actuarially justified rate or premium increases for any policy or contract for which the Corporation provides coverage under this subtitle; and
(9)    perform any other act necessary or proper to carry out this subtitle.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-410 - Plan of Operation

(a)    (1)    (i)    The Corporation shall submit to the Commissioner a plan of operation and any amendments necessary or suitable to it to ensure the fair, reasonable, and equitable administration of the Corporation.
(ii)    1.    The plan of operation and any amendments to it take effect when approved in writing by the Commissioner.
2.    Unless disapproved by the Commissioner within 30 days after submission, a plan of operation and any amendments to the plan shall be deemed approved on the 31st day after the date on which the plan was submitted.
(2)    (i)    If the Corporation fails to submit suitable amendments to the plan of operation, the Commissioner, after notice and hearing, shall adopt reasonable regulations as necessary or advisable to carry out this subtitle.
(ii)    Regulations adopted under this paragraph shall continue in effect until modified by the Commissioner or superseded by an amendment to the plan of operation submitted by the Corporation and approved by the Commissioner.
(b)    Each member insurer shall comply with the plan of operation.
(c)    The plan of operation shall:
(1)    establish procedures for handling the assets of the Corporation;
(2)    establish the amounts to be reimbursed and the method of reimbursing members of the Board of Directors under § 9–406 of this subtitle;
(3)    establish regular places and times for meetings of the Board of Directors;
(4)    establish procedures for keeping records of the financial transactions of the Corporation, its agents, and the Board of Directors;
(5)    establish procedures for choosing the Board of Directors and submitting the choices to the Commissioner;
(6)    establish any additional procedures for assessments under § 9–409 of this subtitle; and
(7)    contain any additional provisions necessary or proper to perform the powers and duties of the Corporation.
(d)    (1)    The plan of operation may provide that any or all of the powers and duties of the Corporation, except those under §§ 9–408(3) and 9–409 of this subtitle, may be delegated to a person that performs or will perform functions similar to those of the Corporation or its equivalent in two or more states.
(2)    A person to which powers and duties are delegated under the plan of operation shall be:
(i)    reimbursed for any payments made on behalf of the Corporation; and
(ii)    paid for its performance of the functions of the Corporation.
(3)    A delegation under this subsection may:
(i)    take effect only with the approval of the Board of Directors and Commissioner; and
(ii)    be made only to a person that extends protection not substantially less favorable and effective than that provided by this subtitle.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-411 - Duties and Powers of Commissioner; Judicial Review; Notice of Effect of Subtitle

(a)    (1)    The Commissioner:
(i)    shall notify the Board of Directors of the existence of an impaired insurer not later than 3 days after a determination of impairment is made or the Commissioner receives notice of impairment;
(ii)    on request of the Board of Directors, shall provide the Corporation with a statement of the premiums in the State and other appropriate states for each member insurer;
(iii)    when an impairment is declared and the amount of the impairment is determined, shall serve a demand on the impaired insurer to make good the impairment within a reasonable time; and
(iv)    shall be appointed as:
1.    the liquidator or rehabilitator in a liquidation or rehabilitation proceeding involving a domestic member insurer; or
2.    the conservator or ancillary receiver in a liquidation proceeding involving a member insurer that is a foreign insurer in its domiciliary jurisdiction or an alien insurer in its state of entry.
(2)    (i)    Notice to the impaired insurer under paragraph (1)(iii) of this subsection is deemed notice to its shareholders.
(ii)    Failure of the impaired insurer to comply promptly with a demand to make good the impairment does not excuse the Corporation from the performance of its duties and powers under this subtitle.
(b)    (1)    The Commissioner:
(i)    after notice and hearing, may suspend or revoke the license or certificate of authority to transact business in the State of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation; or
(ii)    on behalf of the Corporation, may impose a penalty on a member insurer that fails to pay an assessment when due.
(2)    A penalty imposed under paragraph (1)(ii) of this subsection may not exceed 5% of the unpaid assessment per month and may not be less than $100 per month.
(c)    (1)    Within 30 days after an action of the Board of Directors or Corporation, a member insurer may appeal the action to the Commissioner.
(2)    A final action or order of the Commissioner under this subtitle is subject to judicial review.
(d)    The liquidator, rehabilitator, or conservator of an impaired insurer may notify all interested persons of the effect of this subtitle.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-415 - Examination and Regulation; Financial Report

(a)    The Corporation is subject to examination and regulation by the Commissioner.
(b)    By May 1 of each year, the Board of Directors shall submit to the Commissioner:
(1)    a financial report for the preceding calendar year in the form that the Commissioner approves; and
(2)    a report of its activities during the preceding calendar year.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-417 - Immunity From Liability

(a)    A member insurer or its agents or employees, the Corporation or its agents or employees, members of the Board of Directors, and the Commissioner or the Commissioner’s representatives shall have the immunity from liability described in § 5–413 of the Courts Article for any action or omission taken by them in the performance of their powers and duties under this subtitle.
(b)    The immunity under subsection (a) of this section shall extend to:
(1)    the Corporation as a participant in an organization of one or more other state associations of similar purposes to the Corporation; and
(2)    the agents or employees of an organization in which the Corporation is a participant under item (1) of this subsection.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-418 - Stay of Proceedings; Default Judgments

(a)    To allow proper legal action by the Corporation on any matter germane to its powers or duties, each proceeding in which the impaired insurer is a party in a court in the State shall be stayed for 60 days after the date an order of liquidation, rehabilitation, or conservation is final.
(b)    If a court enters a judgment under a decision, order, verdict, or finding based on default, the Corporation may:
(1)    apply to have the judgment, decision, order, verdict, or finding set aside by the same court that made it; and
(2)    defend against the suit on the merits.
2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-102 - Scope of Subtitle

(a)    This subtitle applies to insurance producers, all kinds of insurance and annuities, and all types of insurers, including:
(1)    nonprofit health service plans;
(2)    dental plan organizations;
(3)    health maintenance organizations; and
(4)    fraternal benefit societies.
(b)    This subtitle does not apply to:
(1)    reinsurance;
(2)    except as provided in §§ 10-116(c) and 10-119 of this subtitle, surplus lines transactions, which are subject to Title 3, Subtitle 3 of this article;
(3)    a person while employed by an insured to administer or help to administer the insurance or risk management program of the person’s employer, if the person is not authorized to accept any compensation from an insurance producer or insurer; or
(4)    a licensed insurance adviser while employed under contract by an insured and acting for the insured, if the insurance adviser is not authorized to accept any compensation from an insurance producer or insurer.
2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-106 - Qualifications of Business Entity

(a)    This section does not apply to a motor vehicle rental company that applies for a limited lines license to sell insurance in connection with, and incidental to, the rental of a motor vehicle under Subtitle 6 of this title.
(b)    To qualify for a license as an insurance producer, a business entity must designate a licensed insurance producer to act as the business entity’s principal contact with the Administration.
(c)    The designated insurance producer shall:
(1)    provide to the Administration at the time of designation the insurance producer’s name, business address, business telephone number, business facsimile number, and business electronic mail address;
(2)    notify the Insurance Administration in writing of any change in the information required by item (1) of this subsection within 10 days after the change;
(3)    compile and maintain, to the extent reasonably possible, a list of locations where records of the business entity are maintained; and
(4)    on request, cooperate with any investigation conducted by the Administration unless the cooperation is subject to a legal privilege asserted by the designated insurance producer or the business entity.
2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-107 - Examinations -- in General

(a)    An individual applicant may not be required to take an examination that relates to any kind of insurance other than as requested by the applicant.
(b)    If an individual applicant requests, the examination shall be administered to allow the applicant to be tested in more than one kind of insurance in one day.
(c)    An individual applicant for an examination specified in this subtitle or Subtitle 2 or Subtitle 4 of this title shall pay the fee required under this article in the manner specified by the Commissioner.
2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-108 - Examinations -- Insurance Other Than Life and Health Insurance and Annuities

(a)    An individual applicant who otherwise qualifies for a license for insurance other than life insurance, health insurance, or annuities is entitled to be examined as provided in this section.
(b)    To determine the competence of an individual applicant as to the kind or subdivision of insurance for which the applicant wants to become licensed, the applicant shall pass a written examination that relates to that kind or subdivision of insurance.
(c)    The Commissioner shall adopt reasonable regulations that specify:
(1)    the scope, type, conduct, and grading of the written examinations;
(2)    the frequency, times, and locations within the State where the written examinations will be held; and
(3)    the educational requirements for an individual applicant to be eligible to take a written examination.
(d)    Before taking a written examination, an individual applicant shall:
(1)    (i)    demonstrate to the Commissioner that the applicant has completed the educational requirements set out by the Commissioner; or
(ii)    submit to the Commissioner at the time of the examination an affidavit from the employer of the applicant stating facts that show compliance with the applicable requirements of § 10–104(h)(2) or (3) of this subtitle, if the applicant qualifies by meeting the experience requirements of § 10–104(h)(2) or (3) of this subtitle; and
(2)    pay the application fee required under § 2–112(a)(6)(vi) of this article.
(e)    All written examinations shall be graded within 30 days following the date of the examination.
(f)    An individual applicant who fails an examination may not take another examination until at least 4 days after the date of the last examination that the applicant failed.
2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-109 - Examinations -- Life and Health Insurance and Annuities

(a)    An individual applicant who otherwise qualifies for a license for life insurance, health insurance, annuities, nonprofit health service plans, dental plan organizations, or health maintenance organizations is entitled to be examined as provided in this section.
(b)    (1)    Each individual applicant must pass a personal written examination to determine:
(i)    the competence of the applicant as to life insurance, health insurance, or annuities or to any subdivision of them, including contracts for nonprofit health service plans, vision plans, dental plan organizations, and health maintenance organizations; and
(ii)    the familiarity of the applicant with the applicable laws of the State.
(2)    Each examination must be graded within 30 days after the date of the examination.
(c)    An individual applicant who fails an examination may not take another examination until at least 4 days after the date of the last examination that the applicant failed.
(d)    The Commissioner shall adopt reasonable regulations that specify:
(1)    the scope, type, conduct, and grading of the written examinations;
(2)    the frequency, times, and places in the State where the written examinations will be held; and
(3)    subject to § 10–105(e) of this subtitle, the educational requirements for an individual applicant to be eligible to take a written examination.
2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-110 - Advisory Boards

(a)    The Commissioner may appoint an advisory board for life and health insurance and an advisory board for property and casualty insurance to assist the Commissioner in reviewing continuing education courses, examinations, and other matters relating to the education and qualification of insurance producers.
(b)    (1)    If the Commissioner appoints a life and health insurance advisory board, the life and health insurance advisory board shall consist of at least eight members.
(2)    Each member of the advisory board shall be experienced in the business of life insurance or health insurance.
(3)    The advisory board:
(i)    may include insurance producers and employees or officers of insurers; and
(ii)    shall include at least two members who are insurance producers with valid licenses issued in the State in that kind of insurance.
(c)    (1)    If the Commissioner appoints a property and casualty insurance advisory board, the property and casualty insurance advisory board shall consist of at least eight members.
(2)    Each member of the advisory board shall be experienced in the business of property insurance or casualty insurance.
(3)    The advisory board:
(i)    may include insurance producers and employees or officers of insurers; and
(ii)    shall include at least two members who are insurance producers with valid licenses issued in the State in that kind of insurance.
(d)    (1)    The term of a member of an advisory board under this section is 4 years.
(2)    A member who is appointed after a term has begun serves only for the rest of the term.
(3)    A member is eligible for reappointment.
(4)    The Commissioner may stagger the terms of members of each advisory board under this section.
(e)    A member of an advisory board under this section:
(1)    may not receive compensation; but
(2)    if authorized by the Commissioner, is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(f)    The Commissioner may adopt regulations to carry out this section.
2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-111 - Applications for License

(a)    A person who applies for a license as a resident insurance producer shall:
(1)    in the case of an applicant who is an individual, submit to the Commissioner a uniform application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the uniform application are true, correct, and complete to the best of the individual’s knowledge and belief;
(2)    in the case of an applicant that is a business entity, submit to the Commissioner a uniform business entity application;
(3)    pay the applicable fee required by § 2-112 of this article for a license;
(4)    file on the form and in the manner that the Commissioner provides:
(i)    any trade name to be used by the applicant;
(ii)    the business address of the applicant; and
(iii)    the name and residence address of each individual who holds a license and does business under the trade name; and
(5)    submit to the Commissioner any additional information or documentation that the Commissioner requires, including any information or documentation to determine the professional competence, good character, and trustworthiness of the applicant.
(b)    An applicant who has experience in the armed forces of the United States and qualifies under § 10–104(h)(3) of this subtitle must file an application within 1 year after the date of discharge from the armed forces.
(c)    (1)    This subsection does not apply to a motor vehicle rental company that applies for a limited lines license to sell insurance in connection with, and incidental to, the rental of a motor vehicle under Subtitle 6 of this title.
(2)    In addition to any other information required on the application, an applicant that is a business entity must:
(i)    identify the licensed insurance producer who is designated to act as the business entity’s principal contact with the Administration; and
(ii)    provide the name and address of each licensed producer employed by the business entity, each individual who has direct control over its fiscal management, and each owner, member, or manager of the business entity and each director of a business entity that is a corporation.
2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-112 - Issuance of License

(a)    (1)    The Commissioner shall issue a license in a kind or subdivision of insurance or a combination of kinds or subdivisions of insurance to each applicant who meets the requirements of this subtitle.
(2)    An applicant may qualify for a license in one or more of the following kinds of insurance:
(i)    life insurance;
(ii)    accident and health or sickness insurance;
(iii)    property insurance;
(iv)    casualty insurance;
(v)    variable life and variable annuity products;
(vi)    personal lines of property and casualty insurance;
(vii)    limited line credit insurance; and
(viii)    any other kind or subdivision of insurance permitted under State law or regulations.
(b)    A license shall contain:
(1)    the licensee’s name, address, and personal identification number;
(2)    the date of issuance;
(3)    the kind or subdivision of insurance or combination of kinds or subdivisions of insurance for which the licensee is authorized to act as an insurance producer;
(4)    the expiration date; and
(5)    any other information that the Commissioner considers necessary.
(c)    (1)    To help the Department of Assessments and Taxation in identifying new businesses in the State, by August 31 of each year the Commissioner shall provide to the Department of Assessments and Taxation a list of insurance producers that were issued licenses during the previous fiscal year.
(2)    The list shall include:
(i)    the name and mailing address of each person issued a license; and
(ii)    the federal tax identification number of each person or, if the person does not have a federal tax identification number, the Social Security number of the person.
(3)    The Commissioner shall provide the list free of charge.