MARVIN MANDEL, Governor                                 15

hereby repealed and re—enacted, with amendments, to read
as follows:

Article 48A - Insurance Code
508.

(a) The Association shall:

(1) Be obligated to the extent of the covered
claims existing prior to the determination of insolvency
and arising within 30 days after the determination, of
insolvency, or before the policy expiration date if less
than 30 days after the determination, or before the
insured replaces the policy or causes its cancellation,
if he does so within 30 days of the determination, but
such obligation shall include only that amount of each
covered claim which is in excess of $50. In no event
shall the Association be obligated to a policyholder or
claimant in an amount in excess of the obligation of the
insolvent insurer under the policy from which the claim
arises.

{2} Be deemed the insurer to the extent of its
obligation on the covered claims and to such extent shall
have all rights, duties, and obligations of the insolvent
insurer as if the insurer had not become insolvent.

(3) Allocate claims paid and expenses incurred
among the four accounts separately, and assess member
insurers separately for each account in amounts necessary
to pay the obligation, of the Association under paragraph
(1) subsequent to an insolvency, the expenses of handling
covered claims subsequent to an insolvency, the cost of"
examinations under § 513 and other expenses authorized by
this subtitle. The assessments of each member insurer
shall be in the proportion that the net direct written
premiums of the member insurer for the preceding calendar
year on the kinds or insurance in the account bears to
the net direct written premiums of all member insurers
for the preceding calendar year on the kinds of insurance
in the account. Each member insurer shall be notified
of the assessment not later than 30 days before it is
due. No member insurer may be assessed in any year on
any account in an amount greater than 2% of that member
insurer's net direct written premiums for the preceding
calendar year on the kinds of insurance in the account.
If the maximum assessment, together with the other assets
of the Association in any account, does not provide in
any one year in any account an amount sufficient to make
all necessary payments from that account, the funds
available shall be prorated and the unpaid portion shall
be paid as soon thereafter as funds become available.
The Association may exempt or defer, in whole or in part.