HARRY HUGHES, Governor                                 2055

INSURANCE SHALL BE ACTUARIALLY SELF-SUPPORTING, BUT IN NO
EVENT SHALL BE LESS THAN THE BUREAU OR STANDARD RATES NOR
MORE THAN 30 PERCENT ABOVE THE BUREAU OR STANDARD RATES.
THE HOMEOWNER'S INSURANCE POLICIES TO BE ISSUED BY THE
ASSOCIATION MAY BE LIMITED TO BASIC MARKET VALUE, REPAIR
COST, OR ACTUAL CASH VALUE CONTRACTS FOR OWNER-OCCUPANTS OF
ONE-TO-FOUR-FAMILY DWELLINGS, AS APPROVED BY THE
COMMISSIONER. THE HOMEOWNER'S INSURANCE SHALL BE
IMPLEMENTED THROUGH A PROGRAM ENTITLING ELIGIBLE APPLICANTS
FOR HOMEOWNER'S INSURANCE TO IMMEDIATE BINDING OF COVERAGE
THROUGH THE MARYLAND JOINT INSURANCE ASSOCIATION PENDING A
REASONABLE PERIOD OF TIME FOR UNDERWRITING AND INSPECTION OF
THE PREMISES SO AS TO DETERMINE WHETHER THE PREMISES MEET
THE UNDERWRITING ELIGIBILITY STANDARDS OF THE PROGRAM.

(9) THE PROGRAM OF OPERATION SHALL PROVIDE A METHOD
FOR RECOUPMENT BY MEMBERS OF LOSSES INCURRED BY THE JOINT
INSURANCE ASSOCIATION. IN ORDER TO RECOUP LOSSES, THE PLAN
OF OPERATION SHALL PROVIDE FOR THE CALCULATION OF THE RATES
OR RATING FACTORS TO BE ADDED TO DIRECT WRITTEN PREMIUMS FOR
ESSENTIAL PROPERTY INSURANCE COVERING PROPERTY LOCATED IN
THIS STATE. THE PLAN OF OPERATION AND SURCHARGE CALCULATION
SHALL BE SUBJECT TO THE APPROVAL OF THE COMMISSIONER.
MEMBERS SHALL IMPLEMENT THE SURCHARGE ON ALL POLICIES OF
BASIC PROPERTY INSURANCE WRITTEN ON PROPERTIES LOCATED
WITHIN THIS STATE.

(9)  THE PROGRAM OF OPERATION SHALL PROVIDE A METHOD OF
RECOUPMENT WHEREBY MEMBERS MAY RECOVER LOSSES AND EXPENSES
INCURRED BY THE JOINT INSURANCE ASSOCIATION FOR WHICH THEY
HAVE BEEN ASSESSED BY THE ASSOCIATION. TO RECOUP LOSS AND
EXPENSE ASSESSMENTS, THE PROGRAM OF OPERATION SHALL PROVIDE
FOR THE CALCULATION OF THE SURCHARGE OR RATING FACTORS TO BE
ADDED TO DIRECT WRITTEN PREMIUMS FOR ESSENTIAL PROPERTY
INSURANCE AND HOMEOWNER'S INSURANCE COVERING PROPERTY
LOCATED IN THIS STATE AND SHALL PROVIDE FOR THE ADJUSTMENT
EACH YEAR FOR ANY OVER OR UNDER RECOUPMENT OF ASSESSMENT.

(10)  THE PROGRAM OF OPERATION SHALL DEVELOP A
PARTICIPATION CREDIT FOR HABITATIONAL DWELLINGS AS AN OFFSET
TO MEMBER ASSESSMENT FOR VOLUNTARY WRITINGS IN THOSE AREAS
OF THIS STATE WITH A SIGNIFICANT PROPORTION OF JOINT
INSURANCE ASSOCIATION ESSENTIAL PROPERTY INSURANCE POLICIES.
AFTER CONSULTATION WITH THE GOVERNING COMMITTEE, THE
COMMISSIONER SHALL DETERMINE WHEN AN AREA HAS A SIGNIFICANT
PROPORTION OF ASSOCIATION POLICIES.

478D.

(1) Any person having an insurable interest in real or
tangible personal property at a fixed location in an urban
area, who has been unable to obtain essential property
insurance OR HOMEOWNER'S INSURANCE, or has been able to
obtain such insurance only after application pursuant to
Section [242(c)(7)] 242(H)(3) of [the Maryland Insurance
Code] THIS ARTICLE, or has been able to obtain only partial
coverage of the value of such property, shall be entitled,