PARRIS N. GLENDENING, Governor                             Ch. 296

Annotated Code of Maryland

(1994 Replacement Volume and 1994 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

243.

(c) The Board of Trustees of the Fund shall consist of 11 persons, selected as follows.
The Executive Director is a member of the Board of Trustees, and, except as provided in
subsection (b), has the power to vote. Five members shall be appointed by the Governor with
the advice and consent of the Senate, and serve at the pleasure of the Governor. A MEMBER
APPOINTED BY THE GOVERNOR MAY NOT BE ACTIVELY AFFILIATED WITH AN INSURANCE
AGENCY. INSURANCE BROKER, INSURER, OR PREMIUM FINANCE COMPANY IF THE
INSURANCE AGENCY, INSURANCE BROKER, INSURER, OR PREMIUM FINANCE COMPANY
DOES BUSINESS WITH THE FUND. Five members shall be appointed by the Board of Directors
of the Industry Automobile Insurance Association in accordance with § 243M. Two of the 5
Industry Automobile Insurance Association members shall be residents of this State. The
Chairman of the Board of Trustees shall be selected by the Board of Trustees. However for
each successive term, the chairmanship shall alternate between a gubernatorial appointee and
an Industry Automobile Insurance Association appointee. The Executive Director may not be
Chairman of the Board of Trustees. The Board of Trustees shall advise the Executive Director
with respect to his exercise of the powers and duties conferred on him by this subtitle. The
Board of Trustees shall formulate policy for the Fund. Each trustee who is not otherwise an
officer or employee of the State shall receive per diem compensation set by the Board of Public
Works for each day actually engaged in the discharge of his official duties as a trustee, and
each trustee shall receive reimbursement for all necessary and proper expenses.

243B.

(a) (1) Subject to the provisions of this subtitle generally and § 243D of this
subtitle in particular, the Fund is authorized and shall sell, issue, and deliver, upon
payment of the premium set by the Fund, a policy of automobile liability insurance to any
Maryland resident:

(i) Who owns an automobile validly registered with the Motor Vehicle
Administration, or has a valid license to operate an automobile issued by the Motor
Vehicle Administration;

(ii) Who does not owe to the Fund either any unpaid insurance
premium with respect to a prior expired or cancelled policy, or claim payments obtained
by fraud; and

(iii) Who either:

1. Has in good faith attempted to obtain a policy of automobile
liability insurance from at least two private insurers authorized to write such a policy in
this State and has been rejected or refused such a policy by two such private insurers for
any reason other than nonpayment of premiums; or

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