2382

LAWS OF MARYLAND

Ch. 599

(b) This subtitle shall apply to all kinds of direct
insurance, except life insurance, health insurance,
[workmen's compensation insurance] and annuities. On July 1,
1975[,] all of the assets and obligations of every type and
description of the Motor Vehicle Security Fund as of the
close of business on June 30, 1975[,] shall be transferred
to the Maryland Insurance Guaranty Association and
administered through the appropriate account under § 506 of
this subtitle. ON JULY 1, 1981, ALL THE ASSETS AND
OBLIGATIONS OF EVERY TYPE AND DESCRIPTION OF THE WORKMEN'S
COMPENSATION INSOLVENCY FUND AT THE CLOSE OF BUSINESS ON
JULY JUNE 30, 1981 SHALL BE TRANSFERRED TO THE MARYLAND
INSURANCE GUARANTY ASSOCIATION AND ADMINISTERED THROUGH THE
APPROPRIATE ACCOUNT UNDER § 506 OF THIS SUBTITLE.

506.

There is created a nonprofit unincorporated legal
entity to be known as the Maryland Insurance Guaranty
Association. All insurers defined as member insurers in §
505 (e) shall be and remain members of the Association as a
condition of their authority to transact insurance in this
State. The Association shall perform its functions under a
plan of operation established and approved under § 509 and
shall exercise its powers through a board of directors
established under § 507. For purposes of administration and
assessment, the Association shall be divided into [five] SIX
separate accounts: (1) the title insurance account; (2) the
surety insurance account; (3) wet marine and transportation
insurance account; (4) motor vehicle insurance account;
[and] (5) THE WORKMEN'S COMPENSATION ACCOUNT; AND (6) the
account for all other insurance to which this subtitle
applies.

508.

(a) The Association shall:

(3) Allocate claims paid and expenses incurred
among the [five] SIX accounts separately, and assess member
insurers separately for each account in amounts necessary to
pay the obligation of the Association under paragraph (1)
subsequent to an insolvency, the expenses of handling
covered claims subsequent to an insolvency, the cost of
examinations under § 513 and other expenses authorized by
this subtitle. The assessments of each member insurer shall
be in the proportion that the net direct written premiums of
the member insurer for the preceding calendar year on the
kinds of insurance in the account bears to the net direct
written premiums of all member insurers for the preceding
calendar year on the kinds of insurance in the account.
Each member insurer shall be notified of the assessment not
later than 30 days before it is due. No member insurer may
be assessed in any year on any account in an amount greater
than 2[%] PERCENT of that member insurer's net direct
written premiums for the preceding calendar year on the