3000

LAWS OF MARYLAND

[Ch. 651

all other insurance to which (the] THIS subtitle applies.

507.

(a) The board of directors of the Association
[shall consist] [[CONSISTS]] shall consist of not less
than five [(5)] nor more than nine [(9)] persons serving
terms as established in the plan of operation. [[The
Commissioner shall be and remain a member of the board
and shall be its chairman.]] The Commissioner shall
appoint the members of the board from member insurers.
Vacancies of the board shall be filled for the remaining
period of the term in the same manner as initial
appointments. A CHAIRMAN SHALL BE ELECTED BY THE BOARD
FROM ITS MEMBERS. THE BOARD MAY ELECT OFFICERS AND SHALL
APPOINT AN EXECUTIVE COMMITTEE OF THREE FROM ITS MEMBERS.
[If no members are selected within 60 days after July 1,
1971, the Commissioner may appoint the initial members of
the board of directors.]

(c) Members of the board[ ,_____except_____the

Commissioner,] may be reimbursed from the assets of the
Association for expenses incurred by them as members of
the board of directors.

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 ACCIDENT 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.

509.

(c) The plan of operation shall:

(1)     Establish the procedures whereby all the
powers and duties of the Association under § 508 will be
performed.

(2)     Establish procedures for handling assets of
the Association.