Section 9-401 - Definitions.
§ 9-401. 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, § 524.
(b) Account.- "Account" means:
(1) the health insurance account;
(2) the life insurance account; or
(3) the annuity account.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 524(1).
The specific names of the accounts are substituted for the former reference to "any of the 3 accounts created under [former] § 525 of this subtitle" for clarity. See § 9-405(d) of this subtitle.
(c) Contractual obligation.- "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.
Special Revisor's Note.
As enacted by Ch. 11, Acts of 1996, this subsection formerly was Art. 48A, § 524(3).
The only changes were in style. However, Ch. 57, Acts of 1997, corrected the subsection designation.
Defined Terms.
"Policy" § 1-101
(d) Corporation.- "Corporation" means the Life and Health Insurance Guaranty Corporation.
Special Revisor's Note.
As enacted by Ch. 11, Acts of 1996, this subsection was new language derived without substantive change from former Art. 48A, § 524(2). However, Ch. 57, Acts of 1997, corrected the subsection designation.
Revisor's Note.
The former phrase "created under [former] § 525 of this subtitle" was deleted by Ch. 11 as surplusage in a definition. See § 9-405(a) of this subtitle.
(e) Covered policy.- "Covered policy" means a policy or contract to which this subtitle applies.
Revisor's Note.
This subsection is new language derived without substantive change from the first sentence of former Art. 48A, § 524(4).
The former specific reference to "§ 522" - now § 9-403 - of this subtitle is deleted as unnecessary in light of the general reference to "this subtitle".
Defined Terms.
"Policy" § 1-101
(f) Impaired insurer.- "Impaired insurer" means an insurer that:
(1) after July 1, 1971, is insolvent 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.
Revisor's Note.
This subsection formerly was Art. 48A, § 524(5).
The only changes are in style.
Defined Terms.
"Contractual obligation" § 9-401
"Insurer" § 1-101
"Commissioner" § 1-101
(g) Individual.- "Individual" means a natural person covered under an individual policy or covered as a member under a group policy.
Revisor's Note.
This subsection formerly was Art. 48A, § 524(6).
The only change is in style.
Defined Terms.
"Policy" § 1-101
(h) Insolvent insurer.- "Insolvent insurer" means a member insurer that, after July 1, 1971, is placed under an order of liquidation by a court of competent jurisdiction after a finding of insolvency.
Revisor's Note.
This subsection formerly was Art. 48A, § 524(7).
The only changes are in style.
Defined Terms.
"Member insurer" § 9-401
(i) Member insurer.-
(1) "Member insurer" means an authorized insurer that writes a kind of insurance to which this subtitle applies.
(2) "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.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 524(8).
In paragraph (1) of this subsection, the defined term "authorized insurer" is substituted for the former phrase "any person authorized to transact in this State" any kind of insurance for brevity and to use the defined term.
Also in paragraph (1) of this subsection, the former specific reference to "§ 522" - now § 9-403 - of this subtitle is deleted as unnecessary in light of the general reference to "this subtitle".
Defined Terms.
"Authorized insurer" § 1-101
"Insurance" § 1-101
(j) Moody's corporate bond yield average.- "Moody's corporate bond yield average" means the monthly average yield on corporate bonds as published by Moody's Investors Service, Inc.
Revisor's Note.
This subsection formerly was Art. 48A, § 524(9).
No changes are made.
(k) Premiums.-
(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(b) of this subtitle.
Revisor's Note.
This subsection formerly was Art. 48A, § 524(10)(i) and the first sentence of (ii).
The only changes are in style.
Defined Terms.
"Covered policy" § 9-401
"Policy" § 1-101
(l) Resident.- "Resident" means a person that resides in the State when a member insurer is determined to be an impaired insurer or insolvent insurer and to whom a contractual obligation is owed.
Revisor's Note.
This subsection formerly was the first sentence of Art. 48A, § 524(11).
The only changes are in style.
Defined Terms.
"Contractual obligation" § 9-401
"Impaired insurer" § 9-401
"Insolvent insurer" § 9-401
"Member insurer" § 9-401
"Person" § 1-101
(m) Supplemental contract.- "Supplemental contract" means an agreement entered into for the distribution of policy or contract proceeds.
Revisor's Note.
This subsection formerly was Art. 48A, § 524(12).
The only change is in style.
Defined Terms.
"Policy" § 1-101
[An. Code 1957, art. 48A, § 524; 1996, ch. 11; 1997, ch. 57, § 2.]