§ 9-414. Miscellaneous provisions
West's Annotated Code of MarylandInsuranceEffective: October 1, 2020
Effective: October 1, 2020
MD Code, Insurance, § 9-414
§ 9-414. Miscellaneous provisions
(a) This subtitle may not be construed to reduce the liability for unpaid assessments of the insureds of an impaired insurer or insolvent insurer operating under a plan with assessment liability.
(b) Assessable premiums may not be reduced because of § 9-403(g)(2)(iii) of this subtitle relating to interest limitations and because of § 9-407(k) of this subtitle relating to limitations with respect to an individual policyholder.
(c)(1) The Corporation shall keep records of all negotiations and meetings in which the Corporation or its representatives are involved to discuss the activities of the Corporation in carrying out its powers and duties under §§ 9-407 and 9-408 of this subtitle.
(d)(1) In this subsection, “assets attributable to covered policies” means that proportion of the impaired insurer's or insolvent insurer's assets that the amount of the reserves that should have been established for the covered policies bears to the amount of the reserves that should have been established for all policies written by the impaired insurer or insolvent insurer.
(2) For the purpose of carrying out its obligations under this subtitle, the Corporation is considered a creditor of the impaired insurer or insolvent insurer to the extent of the impaired insurer's or insolvent insurer's assets attributable to covered policies reduced by any amounts to which the Corporation is entitled as subrogee under § 9-407(i) of this subtitle.
(e)(1)(i) Before the termination of a liquidation, rehabilitation, or conservation proceeding, the court may consider the contributions of the respective parties, including the Corporation, the stockholders, contract owners, certificate holders, enrollees, and policy owners of the impaired insurer or insolvent insurer, and any other party with a bona fide interest, in making an equitable distribution of the ownership rights of the impaired insurer or insolvent insurer.
(f) It is a prohibited unfair method of competition, subject to Title 27 of this article (Unfair Trade Practices), for a person to make use in any manner of the protection afforded by this subtitle in the sale of insurance or health maintenance organization coverage.
(g)(1) Subject to the limitations of paragraphs (2) and (4) of this subsection, if an order for liquidation or rehabilitation of a member insurer domiciled in the State has been entered, the receiver appointed under the order shall have a right to recover on behalf of the member insurer, from any affiliate that controlled the member insurer, the amount of distribution, other than stock dividends paid by the member insurer on its capital stock, made at any time during the 5 years preceding the petition for liquidation or rehabilitation.
(h)(1) A member insurer or insurance producer may not deliver a policy or contract that at the time of delivery exceeds the limitations imposed by § 9-407(k)(3) of this subtitle, or that is not subject to coverage under § 9-403 of this subtitle, unless the member insurer or insurance producer, before or at the time of delivery, provides the policyholder, certificate holder, enrollee, or contract holder with a separate written notice as provided in paragraph (2) of this subsection.
Credits
Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 2001, c. 731, §§ 1, 9, eff. July 2, 2001; Acts 2002, c. 19, § 5, eff. April 9, 2002; Acts 2012, c. 633, § 1, eff. Oct. 1, 2012; Acts 2012, c. 634, § 1, eff. Oct. 1, 2012; Acts 2018, c. 12, § 1, eff. April 5, 2018; Acts 2020, c. 73, § 1, eff. Oct. 1, 2020; Acts 2020, c. 74, § 1, eff. Oct. 1, 2020.
Formerly Art. 48A, §§ 524, 533.
MD Code, Insurance, § 9-414, MD INSURANCE § 9-414
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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