2494                                          LAWS OF MARYLAND                                      Ch. 663

THIS STATE ON A SURPLUS LINE BASIS AS DETERMINED BY THE
COMMISSIONER.

601.

(A) (1) THERE IS A COMMERCIAL CASUALTY UNDERWRITING
ASSOCIATION CONSISTING OF ALL INSURERS LICENSED TO WRITE IN THIS
STATE, ON A DIRECT BASIS, COMMERCIAL CASUALTY INSURANCE POLICIES.

(2) EVERY INSURER LICENSED TO WRITE IN THIS STATE, ON
A DIRECT BASIS, COMMERCIAL CASUALTY INSURANCE POLICIES SHALL;

(I) BE A MEMBER OF THE ASSOCIATION; AND

(II) REMAIN A MEMBER AS A CONDITION OF ITS
AUTHORITY TO TRANSACT COMMERCIAL CASUALTY INSURANCE IN THIS
STATE.

(3) NOTWITHSTANDING PARAGRAPH (1) OF THIS SUBSECTION,
OTHER INSURERS MAY BECOME MEMBER INSURERS WITH THE APPROVAL OF
THE COMMISSIONER.

(B) (1) THE ASSOCIATION IS NOT A DEPARTMENT, UNIT, AGENCY,
OR INSTRUMENTALITY OF THE STATE.

(2) ALL DEBTS, CLAIMS, OBLIGATIONS, AND LIABILITIES
INCURRED BY THE ASSOCIATION SHALL BE THE DEBTS, CLAIMS,
OBLIGATIONS, AND LIABILITIES OF THE ASSOCIATION ONLY AND NOT OF
THE STATE, ITS AGENCIES, INSTRUMENTALITIES, OFFICERS, OR
EMPLOYEES.

(3) THE ASSOCIATION MONEYS MAY NOT BE CONSIDERED PART
OF THE GENERAL FUND OF THE STATE.

(4) THE STATE MAY NOT BUDGET FOR OR PROVIDE GENERAL
FUND APPROPRIATIONS TO THE ASSOCIATION.

(5) THE DEBTS, CLAIMS, OBLIGATIONS, AND LIABILITIES
OF THE ASSOCIATION MAY NOT BE CONSIDERED TO BE A DEBT OF THE
STATE OR PLEDGE OF ITS CREDIT.

(C) THE ASSOCIATION MAY:

(1) ESTABLISH A PROGRAM OF OPERATION, SUBJECT TO
APPROVAL BY THE COMMISSIONER;

(2) ISSUE POLICIES OF INSURANCE AND;

(3) CEDE REINSURANCE ON RISKS WRITTEN BY INSURERS IN
CONFORMITY WITH THE PROGRAM.

(D) EACH MEMBER INSURER SHALL PARTICIPATE IN THE EXPENSES
AND LOSSES OF THE ASSOCIATION IN THE PROPORTION THAT THE MEMBER
INSURER'S PREMIUMS WRITTEN BEAR TO THE AGGREGATE PREMIUMS WRITTEN

BY ALL MEMBERS OF THE ASSOCIATION.