reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-519 - Duties of Authorized Insurer; Prohibited Acts; Penalties

(a)    An authorized insurer shall obtain annually a copy of statements of the financial condition of each reinsurance broker that transacts business with the authorized insurer.
(b)    An authorized insurer may not:
(1)    engage the services of a person to act as a reinsurance broker on its behalf unless the person has complied with this subtitle; or
(2)    employ an individual who also is employed by a reinsurance broker that transacts business with the authorized insurer, unless the reinsurance broker is under common control with the authorized insurer and is subject to Title 7 of this article.
(c)    An authorized insurer that violates any provision of this subtitle is subject to the disciplinary and penalty provisions of §§ 4-113 and 4-114 of this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-520 - Duties of Reinsurer; Prohibited Acts; Penalties

(a)    (1)    In this subsection, “actuary” means an individual who is a member in good standing of the American Academy of Actuaries.
(2)    A reinsurer shall obtain annually a copy of statements by an independent certified accountant in a form acceptable to the Commissioner of the financial condition of each reinsurance manager that transacts business with the reinsurer.
(3)    If a reinsurance manager is allowed by contract to maintain loss reserves, a reinsurer shall obtain annually the opinion of an independent actuary attesting to the adequacy of the loss reserves established for losses incurred and outstanding on business produced by the reinsurance manager.
(4)    A reinsurer shall conduct at least semiannually an on-site review of the underwriting and claims processing operations of the reinsurance manager.
(5)    A reinsurer shall notify the Commissioner, in writing, within 30 days after terminating a contract with a reinsurance manager.
(b)    (1)    A reinsurer may not engage the services of a person to act as a reinsurance manager on its behalf unless the person has complied with this subtitle.
(2)    Unless the relationship between the reinsurer and the reinsurance manager is controlled by and disclosed under § 8-106 of this title or Title 7, Subtitles 6 and 7 of this article, a reinsurer may not have on its board of directors an officer, director, employee, agent, or controlling shareholder of its reinsurance manager.
(c)    The binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who is not affiliated with the reinsurance manager.
(d)    (1)    Subject to the hearing provisions of Title 2 of this article, if a reinsurer violates any provision of this subtitle, the reinsurer may be:
(i)    refused approval as an accepted reinsurer; or
(ii)    disapproved as an accepted reinsurer under Title 5, Subtitle 9 of this article.
(2)    In addition to removal as an accepted reinsurer under Title 5, Subtitle 9 of this article, a reinsurer is subject to a civil penalty not exceeding $5,000 for each violation of this subtitle.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-603 - Registration of Providers

(a)    A person must register with the Commissioner before the person acts as or represents itself as a viatical settlement provider in the State.
(b)    (1)    Except for an individual listed in § 8-601(k)(2) of this subtitle, only an individual who is a viatical settlement broker may negotiate viatical settlement contracts between a viator and one or more settlement providers.
(2)    Not later than 30 days after negotiating a viatical settlement contract on behalf of a viator, a viatical settlement broker shall register with the Commissioner in accordance with § 8-604 of this subtitle.
(c)    Employees and agents of a registered viatical settlement provider or a registered viatical settlement broker may not be required to be separately registered except in accordance with regulations adopted by the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-604 - Application; Fee

An applicant for registration shall:
(1)    file with the Commissioner an application on the form that the Commissioner requires; and
(2)    pay to the Commissioner a registration fee set by the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-605 - Representation of Viator; Viator Status Not Limited to Owner or Holder of Policy

(a)    Notwithstanding the manner in which the viatical settlement broker is compensated, a viatical settlement broker is deemed to represent only the viator and owes a fiduciary duty to the viator to act according to the viator’s instructions and in the best interest of the viator.
(b)    For purposes of this subtitle, a viator may not be limited to an owner or certificate holder of a policy that insures the life of an individual who is terminally ill or chronically ill.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-605.1 - Duties of Viatical Settlement Brokers

(a)    At the time of each application for a viatical settlement, a viatical settlement broker shall provide to the viator a written disclosure that, at a minimum, contains a description of the services required by statute to be provided by the viatical settlement broker to the viator.
(b)    A viatical settlement broker may not purchase a policy that is the subject of a viatical settlement brokerage contract between the viatical settlement broker and a viator directly or indirectly through:
(1)    a person owning or controlling an interest in the viatical settlement broker; or
(2)    a person in which any interest is owned or controlled by the viatical settlement broker.
(c)    A viatical settlement broker shall submit to the viator all offers, counteroffers, acceptances, and rejections relating to the placement of the viator’s policy within 72 hours after receipt by the viatical settlement broker.
(d)    (1)    A viatical settlement broker shall provide to the viator a written disclosure of the amount and method of calculating the viatical settlement broker’s compensation, including anything of value received by a viatical settlement broker for the placement of a policy.
(2)    A viatical settlement broker shall provide the disclosure required under this subsection no later than 72 hours before the viatical settlement contract is signed by all parties to the contract.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-607 - Expiration of Registration

(a)    A registration expires at the end of every other year on the anniversary of the registration unless it is renewed as provided in this section.
(b)    Before a registration expires, the registrant may renew it for an additional 2-year term, if the registrant:
(1)    otherwise is entitled to be registered;
(2)    files with the Commissioner a renewal application on the form that the Commissioner requires; and
(3)    pays to the Commissioner a renewal fee of $50.
(c)    An application for renewal of a registration shall be considered made in a timely manner if it is postmarked on or before the anniversary date of the registration of the year of renewal.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-608 - Registration -- Denial, Nonrenewal, Suspension, Revocation

Subject to the hearing provisions of Title 2 of this article, the Commissioner may deny a registration to an applicant or refuse to renew, suspend, or revoke the registration of a registrant if the applicant or registrant:
(1)    knowingly makes a material misstatement in an application for registration;
(2)    fraudulently or deceptively obtains or attempts to obtain a registration for the applicant or registrant or for another;
(3)    has been convicted of a felony or of a misdemeanor involving moral turpitude;
(4)    in connection with the viatical settlement contract and related insurance application, commits fraud or engages in illegal or dishonest activities;
(5)    otherwise has shown a lack of trustworthiness or competence to act as a viatical settlement broker or viatical settlement provider; or
(6)    violates any provision of this subtitle or a regulation adopted under it.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-609 - Penalties; Restitution

Instead of or in addition to suspending or revoking a registration, the Commissioner may:
(1)    impose on the holder a penalty not exceeding $125,000 for each violation of this subtitle; and
(2)    require the holder to make restitution to any person that has suffered financial injury because of the violation of this subtitle.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-610 - Violations

(a)    It is a violation of this subtitle for a viatical settlement broker or viatical settlement provider to:
(1)    violate any provision of this subtitle or any regulation adopted under this subtitle;
(2)    fail to register with the Commissioner in accordance with this subtitle before acting or representing itself as a viatical settlement broker or viatical settlement provider;
(3)    fail to provide a viator with a disclosure statement in accordance with this subtitle;
(4)    fail to allow a viator to rescind a viatical settlement contract up to at least 15 calendar days after the receipt of the viatical settlement proceeds by the viator; and
(5)    fail to deliver to a viator the viatical settlement proceeds in accordance with this subtitle.
(b)    It is a violation of this subtitle for a person to enter into a viatical settlement contract within a 2-year period commencing with the date of issuance of the insurance policy to be acquired under the viatical settlement contract unless:
(1)    the viator certifies to the viatical settlement provider that within the 2-year period:
(i)    the policy was issued on the viator’s exercise of conversion rights arising out of a group or individual policy;
(ii)    the total time covered under the conversion policy and the prior policy is at least 24 months;
(iii)    the time covered under the group policy is calculated without regard to any change in insurance carriers; and
(iv)    the coverage under the group policy has been continuous and under the same group sponsorship;
(2)    the viator submits independent evidence to the viatical settlement provider that within the 2-year period the insured became terminally ill or chronically ill; or
(3)    the viator submits independent evidence to the viatical settlement provider that within the 2-year period the viator or insured disposed of ownership interests in a closely held corporation.
(c)    Any copies of certification or independent evidence required under subsection (b) of this section shall be:
(1)    submitted to the insurer when the viatical settlement provider submits a request to the insurer for verification of coverage; and
(2)    accompanied by a letter of attestation from the viatical settlement provider that the copies of certification or independent evidence required under subsection (b) of this section are true and correct copies of the documents received by the viatical settlement provider.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-610.1 - Verification of Coverage for Life Insurance Policies

(a)    An insurer shall respond to a request for verification of coverage submitted by a viatical settlement provider or a viatical settlement broker under this subtitle, including verification of whether the insurer intends, at the time of the request, to pursue an investigation regarding possible fraud affecting the validity of a policy, within 30 days after the request is received, if the following documents are submitted with the request:
(1)    an authorization signed by the viator; and
(2)    a “Verification of Coverage for Life Insurance Policies” form adopted by the Commissioner under subsection (d) of this section that has been completed by the viatical settlement provider or viatical settlement broker.
(b)    An insurer may not charge a fee for responding to a request for verification of coverage submitted by a viatical settlement provider or a viatical settlement broker that exceeds $50.
(c)    (1)    An insurer may send an acknowledgment of receipt of a request for verification of coverage to the viator and, if the viator is other than the insured, to the insured.
(2)    The acknowledgment may contain a general description of any accelerated death benefit that is available under the policy.
(d)    The Commissioner shall adopt by regulation a “Verification of Coverage for Life Insurance Policies” form.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 6 - Viatical Settlement Providers and Viatical Settlement Brokers › Section 8-611 - Statement Required in Contracts and Applications

(a)    Viatical settlement contracts and applications for viatical settlement contracts shall contain the following statement or a substantially similar statement:
“Any person who knowingly presents false information in an application for insurance or an application for a viatical settlement contract has committed a fraudulent viatical settlement act and on conviction is subject to fines, imprisonment, or both, under § 27-408 of the Insurance Article of the Annotated Code of Maryland.”
(b)    The absence of a statement as required in subsection (a) of this section does not constitute a defense in any prosecution for a fraudulent viatical settlement act.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 1 - Regulation of Entities Operating in Financially Hazardous Condition › Section 9-103 - Order of Commissioner

If the Commissioner determines that the continued operation of an authorized insurer may be hazardous to policyholders or creditors of the authorized insurer or the general public, the Commissioner may issue an order that requires the authorized insurer to:
(1)    reduce the total amount of present and potential liability for benefits under policies through reinsurance;
(2)    reduce, suspend, or limit the volume of business being accepted or renewed;
(3)    reduce general insurance and commission expenses by specified methods;
(4)    increase capital and surplus;
(5)    suspend or limit the declaration and payment of dividends to policyholders or stockholders;
(6)    file reports in a form acceptable to the Commissioner about the market value of its assets;
(7)    limit or withdraw from certain investments or discontinue certain investment practices to the extent that the Commissioner considers necessary;
(8)    document the adequacy of premium rates in relation to risks insured;
(9)    file, in addition to regular annual statements, interim financial reports on the form adopted by the National Association of Insurance Commissioners or in another form required by the Commissioner;
(10)    correct corporate governance practice deficiencies and adopt and utilize governance practices acceptable to the Commissioner;
(11)    provide a business plan to the Commissioner in order to continue to transact business in the State; or
(12)    notwithstanding any other provision of law limiting the frequency or amount of premium rate adjustments, adjust rates for any nonlife insurance product written by the authorized insurer that the Commissioner considers necessary to improve the financial condition of the insurer.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 1 - Regulation of Entities Operating in Financially Hazardous Condition › Section 9-104 - Right to Hearing and Appeal

An authorized insurer aggrieved by an order of the Commissioner under this subtitle has the right to a hearing and the right to appeal from the action of the Commissioner in accordance with §§ 2-210 through 2-215 of this article.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-202 - Uniform Insurers Liquidation Act

(a)    Sections 9-201(b), (d), (e), (f), (g), (j), (k), (l), (m), and (n), 9-203, 9-207(a), 9-218, 9-219, 9-220, 9-226(f) and (g), and 9-227(a), (e), (f), (g), (h), and (i) of this subtitle are the “Uniform Insurers Liquidation Act”.
(b)    (1)    The Uniform Insurers Liquidation Act shall be interpreted and construed to effectuate its general purpose to make uniform the laws of those states that enact it.
(2)    To the extent that a provision of the Uniform Insurers Liquidation Act conflicts with other provisions of this subtitle, the provision of the Uniform Insurers Liquidation Act controls.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-203 - Scope of Subtitle

(a)    This subtitle applies to a person that:
(1)    has done, purports to do, is doing, or is licensed to do an insurance business; and
(2)    is subject to the insurance supervisory authority of, or to liquidation, rehabilitation, reorganization, or conservation by, the Commissioner or equivalent insurance supervisory official of another state.
(b)    The provisions of this subtitle that apply to insurers also apply to:
(1)    a corporation that operates a nonprofit health service plan under Title 14, Subtitle 1 of this article;
(2)    an insurer that is doing or has done insurance business in the State and against whom claims arising from that insurance business may exist now or in the future;
(3)    a person that purports to do insurance business in the State;
(4)    an insurer that has an insured resident or located in the State;
(5)    a person organized or in the process of organizing with intent to do insurance business in the State; and
(6)    a person that does, or has done, any of the acts of an insurance business specified in § 4-205 of this article.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-205 - Immunity From Liability

The Commissioner, deputy commissioner, special deputy commissioner, or any person acting as receiver in a rehabilitation, liquidation, or conservation as a result of a court order issued on or after January 1, 1985, shall have the immunity from liability described in § 5-410 of the Courts Article.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-206 - Fees and Costs

(a)    (1)    This subsection applies even if a paper or instrument:
(i)    is not executed by the Commissioner or a deputy, employee, or attorney of record of the Commissioner; and
(ii)    is not connected with the commencement of an action or proceeding by or against the Commissioner or with the subsequent conduct of the action or proceeding.
(2)    Subject to subsection (b) of this section, the Commissioner may not be required to pay to a public officer in the State a fee for filing, recording, or issuing a transcript or certificate or for authenticating a paper or instrument that relates to the exercise by the Commissioner of a power or duty of the Commissioner under this subtitle.
(b)    (1)    The Commissioner or deputy commissioner, when acting as receiver or ancillary receiver under this subtitle, shall pay all court costs out of the assets of the insurer before any distribution to creditors or termination of rehabilitation.
(2)    In all cases, these costs and those specified in subsection (a) of this section shall:
(i)    be charged in the accounts of the Commissioner to the court; or
(ii)    be paid by the insurer as a condition of termination of the action or proceeding.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-207 - Appointment of Staff

(a)    (1)    In a delinquency proceeding in which the Commissioner has been appointed receiver, the Commissioner may:
(i)    appoint one or more special deputy commissioners to act for the Commissioner; and
(ii)    employ counsel, clerks, and assistants.
(2)    Compensation of the special deputies, counsel, clerks, and assistants and all expenses of taking possession of the insurer and of conducting the delinquency proceeding:
(i)    shall be set by the Commissioner, subject to approval by the court; and
(ii)    shall be paid out of the assets or funds of the insurer.
(3)    Within the limits of duties imposed on a special deputy concerning a delinquency proceeding, the special deputy:
(i)    shall possess all powers given to the receiver; and
(ii)    in the exercise of those powers, is subject to all the duties imposed on the receiver concerning the delinquency proceeding.
(b)    In a civil proceeding filed against a special deputy commissioner appointed under this subtitle, the special deputy commissioner is entitled to representation by the Attorney General as specified in Title 12, Subtitle 3, Part II of the State Government Article.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-208 - Persons Subject to Delinquency Proceedings

A delinquency proceeding may be brought against:
(1)    an insurer that is doing or has done insurance business in the State and against whom claims arising from that insurance business may exist now or in the future;
(2)    a person that purports to do insurance business in the State;
(3)    an insurer that has insureds resident or located in the State;
(4)    a person organized, or in the process of organizing, with intent to do insurance business in the State;
(5)    a corporation that operates a nonprofit health service plan under Title 14, Subtitle 1 of this article; and
(6)    a person that does, or has done, any of the acts of an insurance business specified in § 4-205 of this article.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-209 - Jurisdiction and Venue

(a)    The Circuit Court of Baltimore City:
(1)    has exclusive original jurisdiction over delinquency proceedings; and
(2)    may issue all necessary and proper orders to carry out this subtitle.
(b)    If service is made in accordance with the Maryland Rules or other applicable law, a court with subject matter jurisdiction over an action brought under this subtitle also has jurisdiction over:
(1)    a person, including an insurance producer and another person that has written policies, that has acted in any manner on behalf of an insurer against which a delinquency proceeding has been commenced, in an action resulting from or incidental to the person’s relationship with the insurer;
(2)    a reinsurer that at any time has entered into a contract of reinsurance with an insurer against which a delinquency proceeding has been commenced, or an insurance producer for the reinsurer, in an action on or incidental to the reinsurance contract;
(3)    an officer, director, manager, trustee, organizer, promoter, or attorney in fact of an insurer against which a delinquency proceeding has been commenced, in an action resulting from or incidental to the person’s relationship with the insurer;
(4)    a person that, at the time of or after commencement of the delinquency proceeding, held or was in control of assets in which the receiver claims an interest on behalf of the insurer, in an action concerning the assets; and
(5)    a person obligated to the insurer in any way, in an action on or incidental to the obligation.
(c)    The venue of all delinquency proceedings is in Baltimore City.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-210 - Commencement of Delinquency Proceedings

(a)    The Commissioner shall commence a delinquency proceeding against an insurer by applying to the court for an order that directs the insurer to show cause why the court should not grant the relief requested.
(b)    (1)    The court may consider an application for commencement of a delinquency proceeding only if the application is filed by the Commissioner in the name of the State.
(2)    After a hearing under the terms of the show–cause order, the court:
(i)    shall either grant or deny the application; and
(ii)    may order other relief as the nature of the case and the interests of the policyholders, creditors, stockholders, members, subscribers, or the public may require.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-214 - Notice to Policyholders of Delinquency Proceeding

Within 15 days after appointment as receiver or conservator for an insurer against which a delinquency proceeding has been commenced, the receiver or conservator shall notify each policyholder of the insurer, by letter or other means approved by the court, of the commencement of the delinquency proceeding and of the possibility that the insurance of the policyholder may be canceled.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-216 - Appeals to Appellate Court of Maryland

An appeal may be taken to the Court of Special Appeals from:
(1)    an order that grants or refuses rehabilitation, liquidation, or conservation; and
(2)    any other order in a delinquency proceeding that has the character of a final order as to the particular part of the delinquency proceeding covered by the order.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-217 - Loans and Pledges of Assets

(a)    To facilitate the rehabilitation, liquidation, conservation, or dissolution of an insurer under this subtitle, the Commissioner, subject to the approval of the court, may:
(1)    borrow money;
(2)    execute, acknowledge, and deliver notes or other evidences of indebtedness for the loan;
(3)    secure the repayment of the loan by the mortgage, pledge, assignment, or transfer in trust of all or part of the property of the insurer; and
(4)    take any other action necessary and proper to consummate the loan and to provide for its repayment.
(b)    The Commissioner is not obligated personally or in an official capacity to repay a loan made under this section.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-218 - Administration of Assets of Domestic or Alien Insurers

(a)    Whenever under this subtitle a receiver is to be appointed in a delinquency proceeding for a domestic insurer or alien insurer, the court shall:
(1)    appoint the Commissioner as receiver; and
(2)    order the Commissioner promptly to take possession of the assets of the domestic insurer or alien insurer and to administer the assets under the orders of the court.
(b)    (1)    Subject to paragraph (2) of this subsection, beginning on the date of issuance of an order that directs the Commissioner to rehabilitate or liquidate a domestic insurer or to liquidate the United States branch of an alien insurer domiciled in the State, the Commissioner as domiciliary receiver is vested by operation of law with title to and may take possession of all of the property, contracts, rights of action, books, and records of the domestic insurer or alien insurer, wherever located.
(2)    An ancillary receiver in a reciprocal state has the rights and powers as to assets located in that state that are specified in this subtitle for an ancillary receiver appointed in this State.
(c)    The filing of the order that directs possession to be taken, or a certified copy of the order, in an office where instruments affecting title to property are required to be filed provides the same notice as would be provided by a deed, bill of sale, or other evidence of title that is so filed.
(d)    (1)    The Commissioner as domiciliary receiver shall administer properly all assets that come into the possession or control of the Commissioner.
(2)    If considered desirable to protect the assets, the court at any time may require a bond from the Commissioner or Deputy Commissioner.
(3)    On taking possession of the assets of a domestic insurer or alien insurer and subject to the direction of the court, the Commissioner immediately shall:
(i)    conduct the business of the domestic insurer or alien insurer; or
(ii)    take action authorized by this subtitle to rehabilitate, liquidate, or conserve the affairs or assets of the domestic insurer or alien insurer.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-219 - Administration of Assets of Insurers Not Domiciled in State

(a)    (1)    Whenever under this subtitle an ancillary receiver is to be appointed in a delinquency proceeding for an insurer not domiciled in the State, the court shall appoint the Commissioner as ancillary receiver.
(2)    The Commissioner shall file a petition requesting appointment as ancillary receiver under § 9-211(e) of this subtitle if:
(i)    the Commissioner finds that there are sufficient assets of the insurer located in the State to justify the appointment of an ancillary receiver; or
(ii)    ten or more persons resident in the State with claims against the insurer file a petition with the Commissioner requesting the appointment of an ancillary receiver.
(b)    For the purpose of liquidating an insurer domiciled in a reciprocal state, the domiciliary receiver:
(1)    is vested by operation of law with title to all of the property, contracts, and rights of action, and all of the books and records of the insurer located in this State;
(2)    immediately may recover balances due from local insurance producers and obtain possession of any books and records of the insurer found in this State;
(3)    subject to subsection (c)(1) of this section, may recover other assets of the insurer located in this State; and
(4)    may sue in this State to recover any assets of the insurer to which the domiciliary receiver is entitled under the law of this State.
(c)    (1)    On appointment of an ancillary receiver in this State, the ancillary receiver:
(i)    has the sole right to recover other assets of the insurer specified in subsection (b)(3) of this section during the ancillary receivership proceeding;
(ii)    shall:
1.    as soon as practicable liquidate from the securities of the ancillary receiver those special deposit claims and secured claims that are proved and allowed in an ancillary proceeding in this State; and
2.    pay the necessary expenses of the ancillary proceeding; and
(iii)    shall transfer promptly all remaining assets to the domiciliary receiver.
(2)    Subject to paragraph (1) of this subsection, the ancillary receiver and deputies of the ancillary receiver have the same powers and are subject to the same duties concerning administration of the assets of the insurer as a receiver of an insurer domiciled in this State.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-220 - Attachment or Garnishment of Assets

(a)    During pendency of a delinquency proceeding in this State or a reciprocal state, an attachment, garnishment, execution, or similar action or proceeding may not be commenced or maintained in a court of this State against the impaired insurer or its assets.
(b)    A lien obtained or an action or proceeding prohibited by subsection (a) of this section is void as against any rights arising in the delinquency proceeding, if the lien was obtained or the action or proceeding commenced within 4 months before or at any time after commencement of a delinquency proceeding.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-221 - Voidable Transfers

(a)    A transfer of or lien on the property of an insurer is voidable if the transfer or lien is:
(1)    made or created within 4 months before the issuance of a show–cause order under this subtitle;
(2)    made or created with the intent to give a creditor a preference or to enable the creditor to obtain a greater percentage of the debt than another creditor of the same class; and
(3)    accepted by the creditor having reasonable cause to believe that the preference will occur.
(b)    Each director, officer, employee, stockholder, member, subscriber, and any other person acting on behalf of an insurer that is concerned in a voidable transfer under subsection (a) of this section and each person that, as a result of the voidable transfer, receives any property of the insurer or benefits from the voidable transfer:
(1)    is personally liable; and
(2)    shall account to the Commissioner.
(c)    The Commissioner as receiver in a delinquency proceeding may:
(1)    avoid a transfer of or lien on the property of an insurer that a creditor, stockholder, subscriber, or member of the insurer might have avoided; and
(2)    recover the transferred property or its value from the person that received it unless that person was a bona fide holder for value before the date of issuance of a show–cause order under this subtitle.
(d)    (1)    Except as provided in paragraph (2) of this subsection, the receiver for an insurer–member may not void any transfer of, or any obligation to transfer, money or any other property arising under or in connection with:
(i)    a federal home loan bank security agreement;
(ii)    a pledge, a security, collateral, or a guarantee agreement; or
(iii)    any other similar arrangement or credit enhancement relating to a federal home loan bank security agreement made in the ordinary course of business and in compliance with the applicable federal home loan bank agreement.
(2)    The receiver may void a transfer under this section if the transfer was made with intent to hinder, delay, or defraud:
(i)    the insurer–member;
(ii)    the receiver for the insurer–member; or
(iii)    existing or future creditors.
(e)    This section may not affect a receiver’s rights regarding advances to an insurer–member in delinquency proceedings under 12 C.F.R. § 1266.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-222 - Deposits

(a)    (1)    The Commissioner shall deposit money collected in a delinquency proceeding in a State or national bank, savings bank, or trust company.
(2)    Deposits made by the Commissioner under paragraph (1) of this subsection have priority of payment equal to any other priority specified by the banking laws of this State if the depository:
(i)    is an institution organized and supervised under the laws of this State; and
(ii)    becomes insolvent or liquidates voluntarily or involuntarily.
(3)    The Commissioner may deposit all or part of the money collected in a national bank or trust company as a trust fund.
(b)    To the extent that an investment or account is insured by the Federal Deposit Insurance Corporation, the Commissioner may invest in shares or deposits in a savings and loan association or building and loan association.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-223 - Limitations on Insurer Pending Repayment to Guaranty Associations

Unless an insurer has repaid to all guaranty associations all payments of or on account of the contractual obligations of the insurer, including all expenses of and interest on the obligations, or unless a guaranty association has approved a plan of repayment by the insurer, an insurer subject to a delinquency proceeding may not:
(1)    be released from the delinquency proceeding unless it is converted into a judicial proceeding to rehabilitate or liquidate;
(2)    be allowed to solicit or accept new business;
(3)    be allowed to request or accept the restoration of a suspended or revoked license or certificate of authority; or
(4)    be returned, or have any of its assets returned, to the control of its stockholders or private management.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-224 - Disbursements of Assets to Guaranty Associations

(a)    In this section, “association” means:
(1)    the Property and Casualty Insurance Guaranty Corporation;
(2)    the Life and Health Insurance Guaranty Corporation; or
(3)    a similar organization in another state.
(b)    Within 120 days after a court of the State makes a final determination that an insurer is an impaired insurer, the Commissioner as receiver shall apply to the court for approval of a proposal to disperse to the association entitled to disbursements unsecured assets out of the marshalled assets of the impaired insurer as those assets become available.
(c)    The proposal for disbursement at a minimum shall provide for:
(1)    adequate cash reserves for payment of expenses of administration and priority claims;
(2)    disbursements of the assets marshalled to date and subsequent disbursements of assets as they become available;
(3)    equitable allocation of disbursements to each of the associations that is entitled to disbursements; and
(4)    the securing by the Commissioner from each association entitled to disbursements under this section an agreement to return to the Commissioner any assets previously disbursed that may be required to pay:
(i)    claims of secured creditors; and
(ii)    claims that fall within the priorities specified in § 9-227(b) of this subtitle in accordance with those priorities.
(d)    An association may not be required to obtain a bond.
(e)    The proposal for disbursement shall require that disbursement be made to the association:
(1)    in an amount at least equal to the payments made or to be made by the association for which the association could assert claims against the Commissioner; and
(2)    in the amount of available assets, if the assets available for disbursement do not equal or exceed the amount of the payments made or to be made by the association.
(f)    (1)    Notice of the application for approval of the proposal for disbursement shall be given to the associations and insurance commissioners of each state.
(2)    Notice is deemed to have been given if sent by certified mail at least 30 days before submission of the application to the court.
(3)    The court may approve the proposal if:
(i)    the required notice has been given under this subsection; and
(ii)    the proposal complies with subsection (c)(1) and (4) of this section.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-229 - Offsets

(a)    Except as provided in subsection (b) of this section, in all cases of mutual debts and credits between an insurer and another person in connection with a delinquency proceeding, the debts and credits shall be offset and the balance only shall be allowed or paid.
(b)    An offset may not be allowed in favor of another person if:
(1)    on the date of issuance of a liquidation order or otherwise, as specified in § 9-228(e) of this subtitle, the obligation of the insurer to the person would not entitle the person to share as a claimant in the assets of the insurer;
(2)    the obligation of the insurer to the person was purchased by or transferred to the person for use as an offset; or
(3)    the obligation of the person is to pay:
(i)    an assessment imposed on the members of a mutual insurer or the subscribers of a reciprocal insurer; or
(ii)    a balance on the subscription to the capital stock of a stock insurer.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-230 - Cooperation With Commissioner Required; Penalties

(a)    This section may not be construed to abridge otherwise existing legal rights, including the right to resist a petition for liquidation, other delinquency proceedings, or other orders.
(b)    In a delinquency proceeding or in an investigation preliminary to the delinquency proceeding, an officer, manager, director, trustee, owner, employee, or agent of an insurer, another person with authority over any part of the affairs of the insurer, or a person that exercises control directly or indirectly over an activity of the insurer through a holding company or other affiliate of the insurer shall:
(1)    reply promptly in writing to an inquiry from the Commissioner in which the Commissioner requests a written reply;
(2)    make available to the Commissioner any accounts, books, documents, information, records, or property of or relating to the insurer that is in the control, custody, or possession of the person; and
(3)    otherwise cooperate with the Commissioner.
(c)    A person may not obstruct or interfere with the Commissioner in the conduct of a delinquency proceeding or in an investigation preliminary or incidental to the delinquency proceeding.
(d)    An officer, manager, director, trustee, owner, employee, or agent of an insurer, another person with authority over any part of the affairs of the insurer, or a person that exercises control directly or indirectly over an activity of the insurer through a holding company or other affiliate of the insurer may not fail to cooperate with the Commissioner under subsection (b) of this section, obstruct or interfere with the Commissioner in the conduct of a delinquency proceeding or in an investigation preliminary or incidental to a delinquency proceeding, or violate an order of the Commissioner issued under this subtitle.
(e)    (1)    A person that violates subsection (d) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000 or imprisonment not exceeding 1 year or both.
(2)    After a hearing before the Commissioner, a person that violates subsection (d) of this section is subject to a civil penalty not exceeding $10,000 and to the revocation or suspension of any insurance license issued by the Commissioner.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-231 - Notice of Impairment Required; Contributing to Impairment Prohibited; Penalties

(a)    In this section, “chief executive officer” means a person charged by the board of directors or trustees of an insurer to administer and implement policies and procedures of the insurer.
(b)    The provisions of this section that apply to insurers also apply to:
(1)    a corporation that operates a nonprofit health service plan under Title 14, Subtitle 1 of this article;
(2)    a dental plan organization, as defined in § 14-401 of this article;
(3)    a surplus lines insurer; and
(4)    a health maintenance organization.
(c)    (1)    A chief executive officer shall immediately provide the Commissioner and all members of the board of directors or the trustees of an insurer with written notice that the insurer is an impaired insurer, if the chief executive officer:
(i)    knows that the insurer is an impaired insurer; and
(ii)    for a period of 60 days, has been unable to remedy the impairment.
(2)    A director, officer, or trustee of an insurer who knows that the insurer is an impaired insurer shall immediately notify the chief executive officer of the impairment.
(d)    Notice provided to the Commissioner under this section has the confidentiality specified in § 7-106 of this article.
(e)    If a person knows that the action will result in or contribute to an insurer becoming an impaired insurer, the person may not:
(1)    conceal property that belongs to the insurer;
(2)    transfer or conceal property of the person or property that belongs to the insurer in contemplation of a delinquency proceeding;
(3)    conceal, destroy, mutilate, alter, or falsify a document that relates to the property of the insurer;
(4)    withhold a document from a receiver, trustee, or other officer of the court entitled to its possession under this subtitle; or
(5)    give, obtain, or receive anything of value for acting or forbearing to act in a delinquency proceeding.
(f)    (1)    In addition to any other applicable penalty provided in this article, a person that violates subsection (e) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 3 years or both.
(2)    In addition to any other applicable penalty provided in this article, a person that violates subsection (c) of this section is subject to a civil penalty not exceeding $50,000.
(g)    The Commissioner may issue a cease and desist order in accordance with § 27-103 of this article against a person that violates subsection (c) or subsection (e) of this section.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 2 - Liquidation, Rehabilitation, Reorganization, and Conservation › Section 9-232 - Receipt of Premium After Insolvency

A director or officer of an insurer, association, or fraternal benefit society that receives a premium or assessment on behalf of the insurer, association, or fraternal benefit society and, at the time of receipt, knows that the insurer, association, or fraternal benefit society is insolvent is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 6 months or both.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-302 - Purposes of Subtitle

The purposes of this subtitle are:
(1)    to provide a mechanism for the prompt payment of covered claims under certain policies and to avoid financial loss to residents of the State who are claimants or policyholders of an insolvent insurer; and
(2)    to provide for the assessment of the cost of payments of covered claims and protection among insurers.
2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 3 - Property and Casualty Insurance Guaranty Corporation › Section 9-303 - Scope of Subtitle

This subtitle applies to all kinds of direct insurance, except:
(1)    life insurance;
(2)    health insurance;
(3)    mortgage guaranty insurance;
(4)    annuities;
(5)    insurance written on a surplus lines basis under Title 3, Subtitle 3 of this article;
(6)    insurance written by a risk retention group; and
(7)    insurance written by an unauthorized insurer.