HARRY HUGHES, Governor                                    1623

all rights, duties, and obligations of the insolvent insurer as
if the insurer had not become insolvent.

(3)  Allocate claims paid and expenses incurred among
the [six] FOUR accounts separately, and assess member insurers
separately for each account in amounts necessary to pay the
obligation of the Association under paragraph (1) OF THIS
SUBSECTION subsequent to an insolvency, the expenses of handling
covered claims subsequent to an insolvency, the cost of
examinations under § 513 OF THIS SUBTITLE 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 kinds of insurance in the account.
If the maximum assessment, together with the other assets of the
Association in any account, does not provide in any one year in
any account an amount sufficient to make all necessary payments
from that account, the funds available shall be prorated and the
unpaid portion shall be paid as soon thereafter as funds become
available. The Association may exempt or defer, in whole or in
part, the assessment of any member insurer, if the assessment
would cause the member insurer's financial statement to reflect
amounts of capital or surplus less than the minimum amounts
required for a certificate of authority by any jurisdiction in
which the member insurer is authorized to transact insurance.
Each member insurer may set off against any assessment,
authorized payments made on covered claims and expenses incurred
in the payment of such claims by the member insurer if they are
chargeable to the account for which the assessment is made.

(4)  Investigate claims brought against the
Association and adjust, compromise, settle, and pay covered
claims to the extent of the Association's obligation and deny all
other claims and may review settlements, releases and judgments
to which the insolvent insurer or its insureds were parties to
determine the extent to which such settlements, releases and
judgments may be properly contested.

(5)  Notify such persons as the Commissioner directs

under § 510(b)(1) OF THIS SUBTITLE.

(6)  Handle claims through its employees or through
one or more insurers or other persons designated as servicing
facilities. Designation of a servicing facility is subject to the
approval of the Commissioner, but such designation may be
declined by a member insurer.