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Statutes Text

Article - Insurance




§9–401.

    (a)    In this subtitle the following words have the meanings indicated.

    (b)    “Account” means:

        (1)    the health insurance 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” means a policy or contract to which this subtitle applies.

    (g)    “Impaired insurer” means an 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.

    (h)    “Individual” means a natural person covered under an individual policy or covered as a member under a group policy.

    (i)    “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.

    (j)    (1)    “Member insurer” means an authorized insurer that writes a kind of insurance to which this subtitle applies.

        (2)    “Member insurer” includes an insurer whose license or certificate of authority in the State may have been suspended, revoked, not renewed, or voluntarily withdrawn.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 health maintenance organization;

            (ii)    a fraternal benefit society;

            (iii)    a mandatory State pooling plan;

            (iv)    a mutual assessment company or other entity that operates on an assessment basis; or

            (v)    an insurance exchange.

    (k)    “Moody’s corporate bond yield average” means the monthly average yield on corporate bonds as published by Moody’s Investors Service, Inc.

    (l)    (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.

    (m)    “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.

    (n)    “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.

    (o)    “Supplemental contract” means an agreement entered into for the distribution of policy or contract proceeds.