Ch. 35

1997 LAWS OF MARYLAND

(B) ATTORNEY IN FACT OF FOREIGN OR ALIEN RECIPROCAL INSURER.

THE ATTORNEY IN FACT OF A FOREIGN OR ALIEN RECIPROCAL INSURER THAT
IS AUTHORIZED TO ENGAGE IN THE INSURANCE BUSINESS IN THE STATE IS NOT
CONSIDERED TO BE DOING BUSINESS IN THE STATE WITHIN THE MEANING OF ANY
LAW OF THE STATE THAT APPLIES TO FOREIGN FIRMS OR CORPORATIONS MERELY
BECAUSE THE ATTORNEY IN FACT PERFORMS ITS DUTIES AS ATTORNEY IN FACT
WITH RESPECT TO THE RECIPROCAL INSURER'S TRANSACTIONS IN THE STATE.

(C) POWER OF ATTORNEY — IN GENERAL.

THE ATTORNEY IN FACT OF A RECIPROCAL INSURER HAS THE RIGHTS AND
POWERS PROVIDED IN THE POWER OF ATTORNEY GIVEN THE ATTORNEY IN FACT
BY THE SUBSCRIBERS.

(D) SAME — TERMS.

THE TERMS OF A POWER OF ATTORNEY OR AGREEMENT COLLATERAL TO THE
POWER OF ATTORNEY MUST BE REASONABLE AND EQUITABLE.

(E) SAME — REQUIRED PROVISIONS.
THE POWER OF ATTORNEY MUST STATE:

(1) THE POWERS OF THE ATTORNEY IN FACT;

(2) THAT THE ATTORNEY IN FACT IS AUTHORIZED TO ACCEPT SERVICE
OF PROCESS ON BEHALF OF THE RECIPROCAL INSURER IN AN ACTION AGAINST THE
RECIPROCAL INSURER ON CONTRACTS EXCHANGED;

(3) THE GENERAL SERVICES TO BE PERFORMED BY THE ATTORNEY IN

FACT;

(4) THE MAXIMUM AMOUNT TO BE DEDUCTED FROM ADVANCE
PREMIUMS OR DEPOSITS TO BE PAID TO THE ATTORNEY IN FACT AND THE GENERAL
ITEMS OF EXPENSE IN ADDITION TO LOSSES, TO BE PAID BY THE RECIPROCAL
INSURER; AND

(5) EXCEPT AS TO NONASSESSABLE POLICIES, A PROVISION FOR A
CONTINGENT SEVERAL LIABILITY OF EACH SUBSCRIBER IN THE AMOUNT SPECIFIED
IN § 3-216 OF THIS SUBTITLE.

(F) SAME — OPTIONAL PROVISIONS.
THE POWER OF ATTORNEY MAY:

(1) PROVIDE FOR THE RIGHT OF SUBSTITUTION OF THE ATTORNEY IN
FACT AND REVOCATION OF THE POWER OF ATTORNEY;

(2) RESTRICT THE EXERCISE OF THE POWER OF ATTORNEY AS AGREED
BY THE SUBSCRIBERS;

(3) PROVIDE FOR THE EXERCISE OF ANY RIGHT RESERVED TO THE
SUBSCRIBERS DIRECTLY OR THROUGH THEIR ADVISORY COMMITTEE; AND

- 788 -