HARRY HUGHES, Governor                                       2495

(E) (1) THE ASSOCIATION SHALL BE ADMINISTERED BY A BOARD OF
GOVERNORS SUBJECT TO THE REGULATION OF THE COMMISSIONER.

(2) THE INITIAL BOARD OF GOVERNORS OF THE ASSOCIATION
SHALL BE THE GOVERNING BOARD OF THE JOINT INSURANCE ASSOCIATION
EXISTING ON JULY 1, 1986.

(3) SUCCEEDING BOARDS OF GOVERNORS SHALL CONSIST OF
15 MEMBERS OF THE ASSOCIATION ELECTED ANNUALLY BY THE MEMBERS OF
THE ASSOCIATION WHOSE VOTES SHALL BE WEIGHTED IN ACCORDANCE WITH
THE MEMBER'S PREMIUMS WRITTEN.

(F) BEFORE AUGUST 1, 1986, THE BOARD OF GOVERNORS SHALL
SUBMIT TO THE COMMISSIONER, FOR THE COMMISSIONER'S REVIEW, A
PROPOSED PROGRAM OF OPERATION, CONSISTENT WITH THE PROVISIONS OF
THIS SUBTITLE, THAT SHALL:

(1) PROVIDE FOR ECONOMICAL, FAIR, AND

NONDISCRIMINATORY ADMINISTRATION;

(2) PROVIDE FOR THE PROMPT AND EFFICIENT PROVISION OF
COMMERCIAL CASUALTY INSURANCE COVERAGE; AND

(3) CONTAIN OTHER MATTERS INCLUDING, BUT NOT LIMITED
TO;

(I) PRELIMINARY ASSESSMENT OF ALL MEMBERS FOR
INITIAL EXPENSES NECESSARY TO COMMENCE OPERATIONS;

(II) ESTABLISHMENT OF NECESSARY FACILITIES;

(III) MANAGEMENT OF THE ASSOCIATION;

(IV) ASSESSMENT OF MEMBER INSURERS TO DEFRAY
LOSSES AND EXPENSES;

(V) COMMISSION ARRANGEMENTS;

(VI) REASONABLE AND OBJECTIVE UNDERWRITING
STANDARDS;

(VII) CESSION OF REINSURANCE; AND

(VIII) PROCEDURES FOR DETERMINING AMOUNTS OF
INSURANCE TO BE PROVIDED.

(G) (1) THE PROGRAM OF OPERATION SHALL;

(I) BE SUBJECT TO APPROVAL BY THE COMMISSIONER,
AFTER CONSULTATION WITH AFFECTED INDIVIDUALS AND ORGANIZATIONS;
AND

(II) TAKE EFFECT 10 DAYS AFTER HAVING BEEN
APPROVED BY THE COMMISSIONER.