2054

LAWS OF MARYLAND

Ch. 574

(II) FIVE PUBLIC MEMBERS WHO ARE MARYLAND
RESIDENTS AND WHO ARE NOT EMPLOYED BY OR OTHERWISE
AFFILIATED WITH INSURERS, INSURANCE AGENTS, BROKERS,
PRODUCERS, ADJUSTERS, OR OTHER ENTITIES OF THE INSURANCE
INDUSTRY SHALL BE APPOINTED ANNUALLY BY THE COMMISSIONER,
SUBJECT TO THE APPROVAL OF THE SECRETARY OF THE DEPARTMENT
OF LICENSING AND REGULATION.

THE TERMS OF THE MEMBERS OF THE GOVERNING
COMMITTEE ELECTED BY THE MEMBERS OF THE ASSOCIATION AND OF
THE PUBLIC MEMBERS OF THE GOVERNING COMMITTEE APPOINTED BY
THE COMMISSIONER SHALL BE 1 YEAR AND SHALL COINCIDE. IN THE
EVENT OF VACANCIES IN THE MEMBERSHIP OF THE GOVERNING
COMMITTEE, APPOINTMENTS TO FILL SUCH VACANCIES FOR THE
REMAINDER OF THEIR UNEXPIRED TERMS SHALL BE MADE IN
ACCORDANCE WITH THE MANNER OF SELECTING MEMBERS OF THE
GOVERNING COMMITTEE FOR EACH PARTICULAR POSITION THAT IS
VACANT.

(7) THE PROGRAM OF OPERATION SHALL PROVIDE REASONABLE
ACCESS AND MARKETING STANDARDS FOR THE IMMEDIATE BINDING OF

ELIGIBLE RISKS, A PREMIUM INSTALLMENT PLAN, AND THE

ESTABLISHMENT OF ADEQUATE MARKETING AND SERVICE FACILITIES
IN ALL DESIGNATED URBAN AREAS.

(7)  THE PROGRAM OF OPERATION SHALL PROVIDE FOR:

(I)  IMMEDIATE BINDING OF ELIGIBLE RISKS;

(II)  NOTWITHSTANDING ANY PROVISIONS OF SECTION 240A THROUGH
240D OF THIS ARTICLE TO THE CONTRARY, UNDERWRITING
GUIDELINES AND PROCEDURES TO BE UTILIZED BY THE ASSOCIATION
WHICH PERMIT THE ASSOCIATION TO SHORTEN THE CANCELLATION
PERIOD OF POLICIES OF ESSENTIAL PROPERTY INSURANCE AND
HOMEOWNER'S INSURANCE FOR CERTAIN CONDITIONS THAT ARE
DETERMINED TO EXIST; (III) A PREMIUM INSTALLMENT PLAN; AND
(IV) THE ESTABLISHMENT OF ADEQUATE MARKETING AND SERVICE
FACILITIES IN ALL DESIGNATED AREAS.

(8) THE PROGRAM OF OPERATION SHALL INCLUDE HOMEOWNERS
INSURANCE COVERAGE AS PART OF THE PROGRAM OF ESSENTIAL
PROPERTY INSURANCE IN THE JOINT INSURANCE ASSOCIATION BY
DEVELOPING, IN CONJUNCTION WITH THE COMMISSIONER, HOMEOWNERS

INSURANCE CONTRACTS FOR URBAN AREAS. THE PROGRAM OF

ESSENTIAL PROPERTY INSURANCE SHALL BE IMPLEMENTED THROUGH A
PROGRAM OF OPERATION ENTITLING OWNER RESIDENTS OF ONE TO
FOUR FAMILY DWELLINGS WHO HAVE BEEN NONRENEWED THROUGH
NORMAL INSURANCE CHANNELS TO IMMEDIATE BINDING COVERAGE IN

THE MARYLAND JOINT INSURANCE ASSOCIATION PENDING A

REASONABLE PERIOD OF TIME FOR THE UNDERWRITING AUTHORITY TO
CONDUCT AN INSPECTION OF THE PREMISES TO DETERMINE WHETHER
THE PREMISES MEET THE UNDERWRITING ELIGIBILITY STANDARDS OF
THE PROGRAM.

(8)  THE PROGRAM OF OPERATION SHALL IMPLEMENT
PROCEDURES WHEREBY HOMEOWNER'S INSURANCE COVERAGE BECOMES
AVAILABLE THROUGH THE JOINT INSURANCE ASSOCIATION. HOWEVER,
THE RATE STRUCTURE FOR THESE POLICIES OF HOMEOWNER'S