Section 9-201 - Definitions.
§ 9-201. Definitions.
(a) In general.- In this subtitle the following words have the meanings indicated.
Revisor's Note.
This subsection is new language derived without substantive change from the introductory language of former Art. 48A, § 132.
(b) Ancillary state.- "Ancillary state" means a state other than a domiciliary state.
Revisor's Note.
This subsection formerly was Art. 48A, § 132(7).
The only changes are in style.
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.
Defined Terms.
"Domiciliary state" § 9-201
"State" § 9-201
(c) Creditor.- "Creditor" means a person with a claim against an impaired insurer.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(14).
The phrase "against an impaired insurer" is added for clarity.
The former language describing a claim as one "matured or unmatured, liquidated or unliquidated, secured or unsecured, absolute, fixed or contingent" is deleted as potentially misleading and unnecessary in light of the general reference to a "claim".
Defined Terms.
"Impaired insurer" § 9-201
"Person" § 1-101
(d) Delinquency proceeding.- "Delinquency proceeding" means a proceeding under this subtitle to liquidate, rehabilitate, reorganize, or conserve an insurer or other entity subject to this subtitle.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(3).
The reference to an "other entity subject to this subtitle" is added to clarify that the former reference to "such insurer" encompassed the former definition of "insurer", which is revised as a scope provision in § 9-203 of this subtitle.
The terms "liquidation", "rehabilitation", "reorganization", and "conservation" appear frequently throughout this subtitle, often in combination and always without recognition of the different meanings of the terms. Under liquidation proceedings, the Commissioner takes possession and control of the assets of an insurer for the purpose of permanently retiring its debts. When an insurer is subject to rehabilitation proceedings, the Commissioner takes control of the day-to-day operations of the insurer. Under reorganization proceedings, the Commissioner, as conservator or rehabilitator, oversees the transfer of assets of an insurer to a newly organized company. When an insurer is under conservatorship, the chief executive officer remains in control of the insurer, subject to review by the Commissioner.
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.
Defined Terms.
"Insurer" § 1-101
(e) Domiciliary state.- "Domiciliary state" means:
(1) the state in which an insurer is incorporated or organized; or
(2) the state of entry of an alien insurer.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(6).
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.
Defined Terms.
"Alien insurer" § 1-101
"Insurer" § 1-101
"State" § 9-201
(f) Foreign country.- "Foreign country" means territory outside of any state.
Special Revisor's Note.
As enacted by Ch. 11, Acts of 1996, this subsection formerly was Art. 48A, § 132(5). However, Ch. 70, Acts of 1997, validated the correction of a grammatical error in this subsection.
The defined term "foreign country" was not used in former Art. 48A, §§ 132A through 164B. However, the term is retained in the revision because it is part of the Uniform Insurers Liquidation Act.
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.
Defined Terms.
"State" § 9-201
(g) General assets.- "General assets" means:
(1) all property that is not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or a limited class of persons;
(2) to the extent that property of an insurer is specifically encumbered, the amount of the property or its proceeds that exceeds the amount necessary to discharge the encumbrance; and
(3) assets held in trust and assets held on deposit for the security or benefit of all policyholders and creditors in the United States.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(9).
In item (1) of this subsection, the former reference to property "real, personal, or otherwise" is deleted as unnecessary in light of the general reference to "property".
In item (3) of this subsection, the former reference to "all policyholders" is deleted as unnecessary in light of the reference to "all policyholders and creditors".
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.
Defined Terms.
"Insurer" § 1-101
"Person" § 1-101
(h) Impaired insurer.- "Impaired insurer" means:
(1) a stock insurer whose assets, less all liabilities and required reserves, do not equal or exceed the capital stock and surplus required for authority to engage in insurance business as a stock insurer;
(2) a mutual insurer, reciprocal insurer, dental plan organization, or nonprofit health service plan whose assets, less liabilities and required reserves, do not equal or exceed the minimum surplus required under this article for authority to engage in insurance business as a mutual insurer, reciprocal insurer, dental plan organization, or nonprofit health service plan; or
(3) as determined by the Commissioner, an insurer that does not have the financial ability to pay an obligation within 30 days after it becomes due.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(1).
The general reference to "impaired insurer" is substituted for the former references to "'impairment', 'impaired', 'insolvency', or 'insolvent"' for brevity and for consistency in the use of a single defined term to represent the financial condition of an insurer subject to a delinquency proceeding under this subtitle.
Defined Terms.
"Commissioner" § 1-101
"Insurance business" §§ 1-101 and 9-201
"Insurer" § 1-101
"Mutual insurer" § 1-101
"Reciprocal insurer" § 1-101
"Stock insurer" § 1-101
(i) Insurance business.- "Insurance business" includes any of the acts of an insurance business specified in § 4-205 of this article.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(15).
The reference to "insurance" business is added for clarity and to conform to language used in § 4-205 of this article.
Defined Terms.
"Insurance business" § 1-101
(j) Receiver.- "Receiver" includes a conservator, rehabilitator, and liquidator.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(13).
The word "includes" is substituted for the former word "means" because this definition seems intended to be illustrative of the types of entities encompassed by the defined term.
The former phrase "as the context may require" is deleted as implicit.
(k) Reciprocal state.- "Reciprocal state" means a state other than this State in which the substance and effect of the provisions of this subtitle are in force, including the requirement that the Commissioner or equivalent insurance supervisory official be the receiver of an insurer subject to a delinquency proceeding and a provision for avoidance of fraudulent conveyances and preferential transfers.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(8).
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.
Defined Terms.
"Commissioner" § 1-101
"Delinquency proceeding" § 9-201
"Insurance" § 1-101
"Insurer" § 1-101
"Receiver" § 9-201
"State" § 9-201
"Transfer" § 9-201
(l) Secured claim.-
(1) "Secured claim" means a claim that:
(i) is secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise; or
(ii) has become a lien on specific assets through judicial process.
(2) "Secured claim" does not include a special deposit claim or a claim against general assets.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(12).
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.
Defined Terms.
"General assets" § 9-201
"Special deposit claim" § 9-201
(m) Special deposit claim.-
(1) "Special deposit claim" means a claim secured by a deposit required by law for the security or benefit of a limited class of persons.
(2) "Special deposit claim" does not include a claim against general assets.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(11).
In paragraph (1) of this subsection, the former reference to "classes" is deleted in light of Art. 1, § 8 of the Code, which provides that the singular includes the plural.
Paragraph (2) of this subsection is revised to clarify that a "claim" against general assets is not considered a "special deposit claim" and to correct the misleading language of former Art. 48A, § 132(11), which stated that "general assets" are not considered a "special deposit claim". This revision is consistent with former Art. 48A, § 132(12), which defined "secured claim" and is revised as subsection (l) of this section.
As to deposits required by law, see § 4-106 of this article. See also Title 5, Subtitles 7 and 8 of this article.
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act, see § 9-202 of this subtitle.
Defined Terms.
"General assets" § 9-201
"Person" § 1-101
(n) State.- "State" means a state of the United States, the District of Columbia, or Puerto Rico.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 132(4).
As to the effect of this subsection as part of the Uniform Insurers Liquidation Act see § 9-202 of this subtitle.
(o) Transfer.- "Transfer" means:
(1) the sale or other direct or indirect disposition of property or an interest in property;
(2) the fixing of a lien on property or an interest in property; or
(3) the retention of a security title to property delivered to a debtor.
Revisor's Note.
This subsection formerly was Art. 48A, § 132(17).
The only changes are in style.
[An. Code 1957, art. 48A, § 132; 1996, ch. 11; 1997, ch. 70, § 7; 2004, ch. 49.]