2614

LAWS OF MARYLAND

[Ch. 546

(F)   "PLAN OF OPERATION" MEANS THE FORMAL PLAN OF
OPERATION OF THE MARYLAND PROFESSIONAL LIABILITY POOL
ADOPTED PURSUANT TO THIS SUBTITLE, INCLUDING ANY DULY
ADOPTED AMENDMENTS.

(G)     "BOARD OF GOVERNORS" MEANS THAT BOARD
DESIGNATED UNDER THE PROVISIONS OF SECTION 478C(4) OF
THIS ARTICLE.

(H) "PREMIUMS WRITTEN" MEANS GROSS DIRECT PREMIUMS
CHARGED DURING THE SECOND PRECEDING CALENDAR YEAR WITH
RESPECT TO GENERAL LIABILITY INSURANCE POLICIES IN THIS
STATE AND THE GENERAL LIABILITY COMPONENTS OF MULTIPERIL
POLICIES AS COMPUTED BY THE JOINT INSURANCE ASSOCIATION,
LESS RETURN PREMIUMS, DIVIDENDS PAID OR CREDITED TO
POLICYHOLDERS, OR THE UNUSED OR UNABSORBED PORTIONS OF
PREMIUM DEPOSITS.

550.

(A)   ALL PRESENT MEMBERS OF THE JOINT INSURANCE
ASSOCIATION LICENSED TO WRITE IN THIS STATE, ON A DIRECT
BASIS, [[GENERAL LIABILITY INSURANCE]] INSURANCE AS
DEFINED IN SECTION 68 OF THIS ARTICLE, OR ANY COMPONENT
THEREOF IN MULTIPERIL POLICIES, EXCEPT FOR THOSE INSURERS
WHO WRITE ONLY WORKMEN'S COMPENSATION INSURANCE AND
EMPLOYER'S LIABILITY INSURANCE ASSOCIATED THEREWITH,
SHALL AUTOMATICALLY BECOME MEMBERS OF THE POOL. ALL
INSURERS NOT PRESENTLY MEMBERS OF THE JOINT INSURANCE
ASSOCIATION LICENSED TO WRITE IN THIS STATE, ON A DIRECT
BASIS, GENERAL LIABILITY INSURANCE OR ANY COMPONENT
THEREOF IN MULTIPERIL POLICIES SHALL BECOME MEMBERS OF
THE JOINT INSURANCE ASSOCIATION FOR PROFESSIONAL
LIABILITY INSURANCE. 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 COMMISSIONER.

(B)    THE COMMISSIONER MAY REQUIRE THE ASSOCIATION
[[MAY]], PURSUANT TO THE PROVISIONS OF THIS SUBTITLE, TO
ESTABLISH A PROGRAM OF OPERATION, WHICH SHALL BE SUBJECT
TO APPROVAL BY THE COMMISSIONER[[ AND]]. THE
ASSOCIATION MAY CAUSE THE ISSUANCE OF POLICIES OF
INSURANCE AND ASSUME AND CEDE REINSURANCE ON RISKS
WRITTEN BY INSURERS IN CONFORMITY WITH THE PROGRAM.

(C)    EACH MEMBER OF THE ASSOCIATION SHALL
PARTICIPATE IN THE EXPENSES, PROFITS AND LOSSES OF THE
ASSOCIATION IN THE PROPORTION THAT ITS PREMIUMS WRITTEN
ON THE LINES OF INSURANCE AS SET FORTH IN SUBSECTION (A)
OF THIS SECTION BEAR TO THE AGGREGATE PREMIUMS WRITTEN ON
THE LINES OF INSURANCE AS SET FORTH IN SUBSECTION (A) OF
THIS SECTION BY ALL MEMBERS OF THE ASSOCIATION.