MARVIN MANDEL, Governor                          621

(8)   "Allowed claim" means a claim based upon a policy on
account of a motor vehicle accident which has been allowed by the
court after June 1, 1965, in a proceeding under Sections 132 through
164A, inclusive, of this Article.

(9)   "Injured party claim" means a claim of a person, other than
a policyholder or assured, who suffered an injury to his person or
property arising out of a motor vehicle accident within the coverage
of the policy.

(10)   "Policyholder claim" means a claim of a policyholder or
assured within the coverage of the policy, arising out of a motor
vehicle accident wherein such person suffered damage under the
coverage of the policy or where such person has paid an injured
party claim, subject to allowance of such policyholder claim in a
proceeding under Sections 132 through 164A, inclusive, of this
Article.

(11)   "PHYSICAL DAMAGE" MEANS INSURANCE COVER-
AGE FOR DIRECT AND ACCIDENTAL LOSS OF OR DAMAGE
TO THE MOTOR VEHICLE OF THE INSURED AND/OR ITS
EQUIPMENT.

(b)   Creation; payments from fund; source; administering fund.—
(1) There is hereby created a fund to be known as "the Motor
Vehicle [Liability] Security Fund" for the purpose of securing the
benefits under policies on account of claims, from motor vehicle acci-
dents. Such fund shall be used in the payment of allowed claims of
injured parties and policyholders under said insurance policies, re-
maining unpaid, in whole or in part, by reason of the insolvency or
inability of the insurer to meet its insurance obligations where the
insurer has made payments to the fund as required by subsection (c).
No payment from the fund on such an allowed claim shall in any case
be in excess of the limit of liability provided for in the insurance
policy issued by such insurer.

(2) Such fund shall consist of all payments made to the fund by
insurers and of securities acquired by and through the use of
moneys belonging to the fund, together with interest and accretions
earned upon such payments or investments. The fund shall be ad-
ministered separately by the Commissioner in accordance with the
provisions of this section.

(c)   Report of net direct written premiums charged; payments into
fund.— (1) Every insurer shall, on or before November 15, 1965,
file with the Commissioner a return, under oath, on a form to be
prescribed and furnished by the Commissioner stating the amount
of net direct written premiums on policies insuring against legal
liability during the months of July, August, and September preced-
ing as that term was defined in subsection (a) (6) of this section
prior to July 1, 1969. On or before February 15, 1966, and continuing
consecutively thereafter, on or before the fifteenth day of May,
August, November and February of each year, each such insurer
shall file, quarterly, a similar return as to such premiums [charged]
written by such insurer during the quarter year ending on the last
day of the second month preceding that in which the report is re-
quired to be filed. With respect to all returns due on or after Novem-
ber 15, 1969, said return shall also state the amount of net direct
written premiums written on policies insuring against physical
damage.