1532                             Laws of Maryland                      [Ch. 715

(a)    the health insurance account;

(b)    the life insurance account; and

(c)    the annuity account.

(2) The Association shall come under the immediate supervision
of the Commissioner and shall be subject to the applicable provisions
of the insurance laws of this State.

510.    Board of Directors.

(1)    The board of directors of the Association shall consist of not
less than five nor more than nine members serving terms us estab-
lished in the plan of operation. The members of the board shall be
selected by member insurers subject to the approval of the Commis-
sioner. THE COMMISSIONER SHALL APPOINT THE MEM-
BERS OF THE BOARD FROM MEMBER INSURERS. Vacancies
on the board shall be filled for the remaining period of the term
in the manner described in the plan of operation. To select the
initial board of directors, and initially organize the Association, the
Commissioner shall give notice to all member insurers of the time
and place of the organizational meeting. In determining voting
rights at the organizational meeting, each member insurer shall be
entitled to one vote in person or by proxy. If the board of directors
is not selected within 60 days after notice of the organizational meet-
ing, the Commissioner may appoint the initial members.

(2)    In approving selections or in appointing members to the
board, the Commissioner shall consider, among other things, whether
all member insurers are fairly represented.

(3)    Members of the board may be reimbursed from the assets of
the Association for expenses incurred by them as members of the
board of directors, but members of the board shall not otherwise be
compensated by the Association for their services.

511.    Powers and Duties of the Association.

In addition to the powers and duties enumerated in other sections
of this Act,

(1)    If a domestic insurer is an impaired insurer, the Association
may, prior to an order of liquidation or rehabilitation and subject to
any conditions imposed by the Association other than those which
impair the contractual obligations of the impaired insurer and ap-
proved by the impaired insurer and the Commissioner,

(a)    Guarantee or reinsure, or cause to be guaranteed, assumed,
or reinsured, all the covered policies of the impaired insurer;

(b)    Provide such monies, pledges, notes, guarantees, or other
means as are proper to effectuate paragraph (a), and assure pay-
ment of the contractual obligations of the impaired insurer pending
action under paragraph (a); and

(c)    Loan money to the impaired insurer.

(2)    If a foreign or alien insurer is an impaired insurer, the Asso-
ciation may, prior to an order of liquidation, rehabilitation, or con-
servation, with respect to the covered policies of residents and sub-
ject to any conditions imposed by the Association other than those
which impair the contractual obligations of the impaired insurer,
and approved by the impaired insurer and the Commissioner,