Current as of: 2010
(a) In this subtitle the following words have the meanings indicated.(b) "Account" means: (1) the title insurance account; (2) the motor vehicle insurance account; (3) the workers’ compensation account; or (4) the account for all other insurance to which this subtitle applies. (c) "Corporation" means the Property and Casualty Insurance Guaranty Corporation. (d) (1) "Covered claim" means an insolvent insurer’s unpaid obligation, including an unearned premium: (i) that: 1. A. for insurance other than insurance that covers members of a purchasing group, arises out of a policy of the insolvent insurer issued to a resident or payable to a resident on behalf of an insured of the insolvent insurer; or B. for insurance that covers members of a purchasing group, arises out of insurance that covers the members of the purchasing group to the extent that the insurance is obtained by the purchasing group, the insurance is written by an authorized insurer, and the claim is made by a person residing or located in the State; or 2. arises out of a surety bond issued by the insolvent insurer for the protection of a third party that is a resident; (ii) that is presented on or before the last date fixed for the filing of claims in the domiciliary delinquency proceeding as a claim to the corporation or to the receiver in the State; (iii) that: 1. except for a surety bond claim, was incurred or existed before, on, or within 30 days after the determination of insolvency; or 2. for a surety bond claim that arises out of a surety bond issued by a domestic insurer, was incurred or existed before, on, or within 18 months after the determination of insolvency, whether or not the surety bond is issued for no stated period or for a stated period; and (iv) that arises out of a policy or surety bond of the insolvent insurer issued for a kind of insurance to which this subtitle applies. (2) "Covered claim" does not include: (i) an amount due a reinsurer, insurer, insurance pool, or underwriting association, as a subrogation recovery or otherwise; or (ii) an amount due that arises out of insurance covering the members of a purchasing group if the insurance obtained by the purchasing group is written by an unauthorized insurer. (3) (i) "Covered claim" does not include a first party claim by an insured whose net worth exceeds $50,000,000 on December 31 of the year before the year in which the insurer becomes an insolvent insurer. (ii) For purposes of this paragraph, the net worth of an insured is deemed to include the aggregate net worth of the insured and all of its subsidiaries calculated on a consolidated basis. (4) Notwithstanding any other provision of this subtitle, "covered claim" does not include: (i) a claim filed with the Corporation after the earlier of: 1. 18 months after t Prev | Next________________________________________________________________________
Questions & Answers: InsuranceSee also: U.S. Code Provisions: InsuranceFederal Regulations: Insurance
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