MARVIN MANDEL, Governor

2607

SHALL BE APPOINTED BY THE GOVERNOR WITHIN 30 DAYS OF THE
EFFECTIVE DATE OF THIS ACT [[FROM 15 NOMINEES PROPOSED BY
THE MEDICAL AND CHIRURGICAL FACULTY]]. THE INITIAL BOARD
SHALL SERVE FOR AN INITIAL TERM ENDING SEVEN MONTHS AFTER
THE EFFECTIVE DATE OF THIS ACT. THEREAFTER, DIRECTORS
SHALL BE ELECTED BY THE MEMBERS OF THE SOCIETY IN
ACCORDANCE WITH THE ARTICLES OF INCORPORATION AND BYLAWS.

[[(B) AT LEAST SEVEN]] THE BYLAWS SHALL PROVIDE
THAT; (1) NOT MORE THAN FIVE MEMBERS OF THE BOARD OF
DIRECTORS SHALL BE LICENSED PHYSICIANS AND AT LEAST TWO
OF THE DIRECTORS SHALL HAVE HAD [[INSURANCE
ADMINISTRATIVE EXPERIENCE FOR FIVE YEARS OR MORE]]
SUBSTANTIAL EXPERIENCE AS AN OFFICER OR EMPLOYEE OF AN
INSURER: AND (2) THE BOARD OF DIRECTORS SHALL CONSIST OF
PERSONS WHO LIVE IN VARIOUS AND DIFFERENT GEOGRAPHICAL
AREAS THROUGHOUT THE STATE.

[[(C)]] (B) WITHIN 30 DAYS OF THEIR APPOINTMENT BY
THE GOVERNOR, THE INITIAL BOARD OF DIRECTORS SHALL CAUSE
ARTICLES OF INCORPORATION AND BYLAWS TO BE PREPARED AND
FILED IN ACCORDANCE WITH THE LAW OF CORPORATIONS (ARTICLE
23) AND THE INSURANCE CODE (ARTICLE 48A) OF THE CODE,
INCLUDING THE PROVISIONS OF THIS SUBTITLE,

[[(D)]] (C) UPON APPROVAL OF APPLICATION FOR THE
CERTIFICATE OF AUTHORITY THE COMMISSIONER SHALL ISSUE THE
CERTIFICATE AUTHORIZING THE SOCIETY TO ISSUE POLICIES OF
CASUALTY INSURANCE AS FOLLOWS:

(1)       INSURANCE AGAINST LIABILITY OF
PHYSICIANS FOR INJURY ARISING OUT OF THE RENDERING OF OR
FAILURE TO RENDER PROFESSIONAL SERVICES BY THE INSURED.

(2)     INSURANCE AGAINST THE LIABILITY OF ANY
PERSON FOR WHOSE ACTS OR OMISSIONS A PHYSICIAN IS
RESPONSIBLE UNDER THE PROVISIONS OF PARAGRAPH (1), OR
WITH WHOM HE IS ASSOCIATED, INCLUDING PARTNERS,
EMPLOYEES, EMPLOYERS, ASSOCIATES, CONSULTANTS, OR A
PROFESSIONAL SERVICE CORPORATION WHOSE STOCK IS OWNED BY
AN INSURED.

(3)     INSURANCE AGAINST OTHER LIABILITY FOR
INJURY BY PERSONS EMPLOYED IN, BY PROPERTY USED IN, OR BY
ACTIVITIES INCIDENTAL TO, THE PRACTICE OF MEDICINE BY THE
NAMED INSURED, WHEN ISSUED AS INCIDENTAL COVERAGE WITH OR
SUPPLEMENTAL TO INSURANCE SPECIFIED IN PARAGRAPH (1).

551. INITIAL POLICYHOLDERS SURPLUS, TAX AND

MEMBERSHIP FEE

(A) PRIOR TO THE EXPIRATION OF 15 DAYS FROM THE
EFFECTIVE DATE OF THIS ACT, THE BOARD OF MEDICAL
EXAMINERS, AS ESTABLISHED BY THE HEALTH CODE (ARTICLE 43)