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Act. The Court also noted that whether option was actually exercised, or
anticipated to be exercised, was immaterial to validity of the guaranteed
investment contracts as “annuity contracts.”
Md. Life & Health Ins. Guar. Assn. v. Perrott, 306 Md. 78, 482 A.2d 9 (1984).
Maryland Life and Health Insurance Guaranty Association assumed the
handling of claims for the liquidated American Centennial Life Insurance
Company. The Association, as a preferred creditor, sought certain financial
information concerning American Centennial and the receivership. The
receiver for American Centennial denied the Association access to that
information. The Court held that since the Association was not a mere
creditor, it had a right to examine the financial statements of the insolvent
insurance company to enable the Association to protect its interests and the
interests of the policyholders.
Md. Ins. Guar. Assn. v. Muhl, 66 Md. App. 359, 504 A.2d 637 (1986). The
statutory scheme which gave priority in liquidation proceedings to
reimbursement of claims by the guaranty fund was properly applied
retroactively to liquidation proceedings instituted prior to the priority statute's
effective date. The guaranty fund preferred creditor status with regard to the
assets of the insolvent insurance company equivalent to the amount of claims
it paid, regardless of the timing of such payments.
Motor Vehicle Security Fund v. All Coverage Underwriters, Inc., 22 Md. App.
586, 325 A.2d 115 (Ct. of Spec. Appeals 1974). Where the claims of the guaranty
fund conflicted with those of another solvent insurer for the remaining assets
of an insolvent insurer, the court found that the guaranty fund was entitled to
equitable subrogation of the rights of claimants who had filed timely claims.
The solvent insurer had filed its claim by the date specified in the liquidation
order for asserting claims, but the guaranty fund had not. The court held that
while the guaranty fund had neither statutory nor contractual subrogation
rights, the fund was acting neither gratuitously nor as a volunteer in paying
claimants but out of the good faith belief that it was required to do so by
statute. That belief was mistaken because insurer was insolvent when the
guaranty fund was created and therefore, not within the coverage of the fund.
The guaranty fund's belief was supported by an Attorney General's opinion.
The court held, therefore, that the guaranty fund was equitably subrogated to
the claims of any of the claimants who had filed before the last day specified in
the liquidation order.
Massachusetts Commissioner of Insurance v. Massachusetts Insurers Insolvency Fund, 373
Mass. 798, 370 N.E.2d 1353 (1977). The Massachusetts guaranty fund is not
obligated to pay the pre‐insolvency creditors of an insolvent insurer other than
those which have covered claims arising under policies issued by the insurer.
Contrary to the contentions of the insurance commissioner, as the receiver of
the insurer, the guaranty fund had no duty to pay for goods and services
furnished to the insurer prior to insolvency, even though the fund used the
products of such goods and services in handling claims. The guaranty fund was
also not liable for pre‐insolvency obligations incurred by the commissioner as
temporary receiver.
Massachusetts Motor Vehicle Reinsurance Facility v. Commissioner of
Insurance, 379 Mass. 527, 400 N.E.2d 221 (1980). The proceeds of a statecreated
reinsurance facility are payable to the Massachusetts Insurers
Insolvency Fund, rather than to the commissioner of insurance as receiver of
the insolvent insurer, when the reinsurance facility owes such proceeds to the
insurer.
Minnesota In Re Liquidation of Excalibur Ins. Co., 519 N.W.2d. 494 (Minn. Ct. App. 1994).