HARRY HUGHES, Governor                                         737

MAY NOT BE CONSIDERED TO BE A DEBT OF THE STATE OR A PLEDGE OF
ITS CREDIT.

507.

(a) The board of directors of the [Association] CORPORATION
shall consist of not less than five nor more than nine persons
serving terms as established in the plan of operation. [The
Commissioner shall appoint the] THE members of the board SHALL BE
ELECTED from member insurers. Vacancies of the board shall be
filled for the remaining period of the term BY A MAJORITY VOTE OF
THE REMAINING MEMBERS OF THE BOARD [in the same manner as initial
appointments], A chairman shall be elected by the board from its
members. The board may elect officers and shall appoint an
executive committee of three from its members.

(b) In [approving selections to] ELECTING DIRECTORS OR
FILLING VACANCIES ON the board, [the Commissioner shall consider]
CONSIDERATION SHALL BE GIVEN TO, among other things, whether all
member insurers are fairly represented.

(c) Members of the board may be reimbursed from the assets
of the [Association] CORPORATION for expenses incurred by them as
members of the board of directors.

508.

(a) The [Association] CORPORATION shall;

(1) Be obligated to the extent of the covered claims
existing prior to the determination of insolvency and arising
within 30 days after the determination of insolvency, or before
the policy expiration date if less than 30 days after the
determination, or before the insured replaces the policy or
causes its cancellation, if he does so within 30 days of the
determination, but such obligation shall include only that amount
of each covered accident claim which is in excess of $50. In no
event shall the [Association] CORPORATION be obligated to a
policyholder or claimant in an amount in excess of the obligation
of the insolvent insurer under the policy from which the claim
arises.

(2) Be deemed the insurer to the extent of its
obligation on the covered claims and to such extent shall have
all rights, duties, and obligations of the insolvent insurer as
if the insurer had not become insolvent.

(3) Allocate claims paid and expenses incurred among
the [six] 4 accounts separately, and assess member insurers
separately for each account in amounts necessary to pay the
obligation of the [Association] CORPORATION under paragraph (1)
subsequent to an insolvency, the expenses of handling covered
claims subsequent to an insolvency, [the cost of examinations
under § 513] and other expenses authorized by this subtitle. The
assessments of each member insurer shall be in the proportion