MARVIN MANDEL, Governor                          599

JOINT INSURANCE ASSOCIATION
478C.

(1)    There is hereby established a Joint Insurance Association
consisting of all insurers licensed to write in this State, on a direct
basis, Essential Property Insurance or any component thereof in
multi-peril policies. Every such insurer shall be a member of the
Association and shall remain a member as a condition of its authority
to transact such kinds of insurance in this State. In addition, other
insurers may become members with the consent of the Commis-
sioner.

(2)    The Association is authorized pursuant to the provisions of
this subtitle to establish a program of operation, subject to approval
by the Commissioner, and to cause the issuance of policies of insur-
ance, and to assume and cede reinsurance on risks written by insurers
in conformity with the program.

(3)    Each member of the Association shall participate in the ex-
penses, profits and losses of the Association in the proportion that its
Premiums Written bear to the aggregate Premiums Written by all
members of the Association.

(4) The Association shall be administered by a Governing Com-
mittee subject to the supervision of the Commissioner. The Governing
Committee acting as such under the voluntary Maryland Property
Insurance Availability Program immediately prior to the effective
date of this Act shall become the first Governing Committee under
this Act. Thereafter, succeeding Governing Committees shall consist
of nine (9) members of the Association elected annually by the
members of the Association whose votes shall be weighted in accord-
ance with the member's Premiums Written.

(5)    Within thirty (30) days following the effective date of the Act
creating this subtitle, the Governing Committee shall submit to the
Commissioner for his review a proposed program of operation, con-
sistent with the provisions of this subtitle, which shall provide for
economical, fair and non-discriminatory administration and for the
prompt and efficient provision of Essential Property Insurance cover-
age to promote orderly community development, and which shall con-
tain other matters including but not limited to, preliminary assess-
ment of all members for initial expenses necessary to commence
operations, establishment of necessary facilities, management of the
Association, assessment of members to defray losses and expenses,
commission arrangements, reasonable and objective underwriting
standards, acceptance and cession of reinsurance, and procedures for
determining amounts of insurance to be provided. The program of
operation shall be subject to approval by the Commissioner, after
consultation with affected individuals and organizations, and shall
take effect ten days after having been approved by him. If the Com-
missioner disapproves all or any part of the proposed program of
operation, the Governing Committee shall within thirty days submit
for review an appropriately revised plan of operation or part the