742                                          LAWS OF MARYLAND                                  Ch. 241

COVERS A SPOUSE OR OTHER HOUSEHOLD MEMBER OF THE FAMILY

OF THE POLICYHOLDER, THE CANCELLATION OF THE POLICY SHALL
NOT CANCEL THE COVERAGE OF THE SPOUSE OR FAMILY MEMBER

WHO HAS NOT HAD HIS OR HER DRIVING LICENSE SUSPENDED OR

REVOKED, AND THE FUND SHALL RECLASSIFY THE RATE OF RISK
OF THE SPOUSE OR FAMILY MEMBER FOR PREMIUM PURPOSES.

(2)    IF THE ADMINISTRATOR DOES NOT SUSPEND OR

REVOKE THE INSURED'S DRIVING LICENSE PURSUANT TO

PARAGRAPH (1), THE EXECUTIVE DIRECTOR MAY NOT CANCEL OR
REFUSE TO RENEW THE POLICY OF INSURANCE.

(3)    THE EXECUTIVE DIRECTOR MAY REFER ANY OTHER

MATTER CONCERNING ANY INSURED'S DRIVING RECORD TO THE

ADMINISTRATOR FOR A DETERMINATION.

243M.

(A)    THE INDUSTRY AUTOMOBILE INSURANCE ASSOCIATION

IS CREATED. IT CONSISTS OF ALL INSURERS LICENSED TO

WRITE MOTOR VEHICLE LIABILITY OR PHYSICAL DAMAGE

INSURANCE IN THIS STATE ON A DIRECT BASIS EXCEPT THE

MARYLAND AUTOMOBILE INSURANCE FUND. EACH SUCH INSURER
SHALL BECOME AND REMAIN A MEMBER OF THE ASSOCIATION AS A
CONDITION OF ITS AUTHORITY TO WHITE THIS INSURANCE IN
MARYLAND.

(B)    THE ASSOCIATION SHALL BE ADMINISTERED BY A
BOARD OF DIRECTORS CONSISTING OF NINE PERSONS ELECTED
ANNUALLY BY THE MEMBERS OF THE ASSOCIATION. THE BOARD
SHALL INCLUDE TWO PERSONS NOMINATED BY THE AMERICAN
INSURANCE ASSOCIATION, TWO PERSONS NOMINATED BY THE
AMERICAN MUTUAL INSURANCE ALLIANCE, TWO PERSONS NOMINATED

BY THE NATIONAL ASSOCIATION OF INDEPENDENT INSURERS, ONE

PERSON ASSOCIATED WITH AN INSURER CHARTERED IN MARYLAND

THAT IS NOT AFFILIATED WITH ANY OF THOSE THREE GROUPS,
AND TWO PERSONS WHO ABE NOT AFFILIATED WITH A MEMBER
COMPANY OF ANY OF THOSE THREE GROUPS OR WITH THE DOMESTIC
INSURER OTHERWISE REPRESENTED ON THE BOARD. IF ANY ONE
OR MORE OF THE THREE GROUPS FAIL TO SUBMIT NOMINEES AT
LEAST TEN DAYS PRIOR TO THE DATE OF THE ELECTION, THE
REQUIREMENT THAT TWO DIRECTORS BE FROM AMONG NOMINEES OF
THAT GROUP NEED NOT BE COMPLIED WITH FOR THAT YEAR.

(C) THE BOARD OF DIRECTORS, ON OR BEFORE SEPTEMBER
1, 1976, AND EACH FOUR YEARS THEREAFTER, SHALL SELECT
FIVE PERSONS TO SERVE AS MEMBERS OF THE BOARD OF TRUSTEES
OF THE MARYLAND AUTOMOBILE INSURANCE FUND. THESE PERSONS

SHALL SERVE AS TRUSTEES FOR A TERM OF FOUR YEARS

COMMENCING SEPTEMBER 1 AND UNTIL THEIR SUCCESSORS ARE

CHOSEN AND QUALIFY. IF A VACANCY OCCURS ON THE BOARD OF

TRUSTEES OF THE FUND BECAUSE A PERSON___REPRESENTING THE

ASSOCIATION CEASES TO BE A TRUSTEE, THE BOARD OF

DIRECTORS SHALL APPOINT A SUCCESSOR TO FILL THE VACANCY
FOR THE UNEXPIRED TERM.

(D) THE BOARD OF DIRECTORS SHALL RECEIVE FROM THE
MARYLAND AUTOMOBILE INSURANCE FUND THE CERTIFICATION OF