2023 Maryland Statutes › Insurance › Title 9 - Impaired Entities › Subtitle 4 - Life and Health Insurance Guaranty Corporation Act › Section 9-401 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Account” means:
(1)    the health account;
(2)    the life insurance account; or
(3)    the annuity account.
(c)    “Association” means the Corporation or any similar organization that has been formed in another state that serves the same purpose as the Corporation for the other state.
(d)    “Contractual obligation” means an obligation under a policy or contract or certificate under a group policy or contract for which coverage is provided under § 9–403 of this subtitle.
(e)    “Corporation” means the Life and Health Insurance Guaranty Corporation.
(f)    “Covered policy” or “covered contract” means a policy or contract to which this subtitle applies.
(g)    (1)    “Health benefit plan” means:
(i)    a hospital or medical expense policy or certificate;
(ii)    a health maintenance organization subscriber contract or group master certificate; or
(iii)    any other similar health contract.
(2)    “Health benefit plan” does not include:
(i)    accident–only insurance;
(ii)    credit insurance;
(iii)    dental–only insurance;
(iv)    vision–only insurance;
(v)    Medicare supplement insurance;
(vi)    benefits for long–term care, home health care, community–based care, or any combination of these benefits;
(vii)    disability insurance;
(viii)    coverage for on–site medical clinics; or
(ix)    specified disease, hospital confinement indemnity, or limited benefit health insurance if the types of coverage:
1.    do not provide coordination of benefits; and
2.    are provided under separate policies or certificates.
(h)    “Impaired insurer” means a member insurer that:
(1)    after July 1, 1971, is not an insolvent insurer and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction; or
(2)    is determined by the Commissioner after July 1, 1971, to be unable or potentially unable to fulfill its contractual obligations.
(i)    “Individual” means a natural person covered under an individual policy or contract or covered as a member or an enrollee under a group policy or contract.
(j)    “Insolvent insurer” means a member insurer that, after July 1, 1971, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency.
(k)    (1)    “Member insurer” means an authorized insurer or a health maintenance organization that is licensed or that holds a certificate of authority to transact in the State any kind of insurance or health maintenance organization business to which this subtitle applies.
(2)    “Member insurer” includes an insurer or a health maintenance organization whose license or certificate of authority in the State may have been suspended, revoked, not renewed, or voluntarily withdrawn.
(3)    “Member insurer” does not include:
(i)    a fraternal benefit society;
(ii)    a mandatory State pooling plan;
(iii)    a mutual assessment company or other entity that operates on an assessment basis; or
(iv)    an insurance exchange.
(l)    “Moody’s corporate bond yield average” means the monthly average yield on corporate bonds as published by Moody’s Investors Service, Inc.
(m)    (1)    “Owner” means the owner or holder of a policy or contract who is:
(i)    identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed in accordance with the terms of the policy or contract; and
(ii)    properly recorded as the owner of the policy or contract on the books of the member insurer.
(2)    “Owner” does not include a person who has only a beneficial interest in a policy or contract.
(n)    “Person” includes an individual, a corporation, a limited liability company, a partnership, an association, a governmental body or entity, or a voluntary organization.
(o)    (1)    “Premiums” means amounts received on covered policies or contracts, less premiums, considerations, and deposits returned, and less dividends and experience credits.
(2)    “Premiums” does not include amounts for policies or contracts, or for parts of policies or contracts, for which coverage is not provided under § 9–403(g) of this subtitle.
(p)    “Resident” means a person that resides in the State on the date of entry of a court order that determines a member insurer to be an impaired insurer or a court order that determines a member insurer to be an insolvent insurer and to whom a contractual obligation is owed.
(q)    “Structured settlement annuity” means an annuity purchased in order to fund periodic payments for a plaintiff or any other claimant in payment for or with respect to personal injury suffered by the plaintiff or other claimant.
(r)    “Supplemental contract” means an agreement entered into for the distribution of policy or contract proceeds.