2496

LAWS OF MARYLAND

Ch. 663

(2) (I) IF THE COMMISSIONER DISAPPROVES ALL OR PART
OF THE PROPOSED PROGRAM OF OPERATION, THE BOARD OF GOVERNORS
SHALL WITHIN 30 DAYS SUBMIT TO THE COMMISSIONER FOR REVIEW AN
APPROPRIATELY REVISED PLAN OF OPERATION.

(II) IF THE BOARD OF GOVERNORS FAILS TO SUBMIT
AN INITIAL PLAN OR A REVISED PLAN FOR REVIEW IN A TIMELY MANNER,
THE COMMISSIONER SHALL PROMULGATE A PROGRAM OF OPERATION.

(H) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE
ASSOCIATION MAY, WITH THE APPROVAL OF THE COMMISSIONER OR AT THE
REQUEST OF THE COMMISSIONER, AMEND THE PROGRAM OF OPERATION.

(2) (I) AMENDMENTS TO THE PROGRAM OF OPERATION MUST
BE VOTED ON AND APPROVED BY THE MEMBER INSURERS OF THE
ASSOCIATION.

(II) VOTES SHALL BE CAST AND COUNTED ON A
WEIGHTED BASIS IN ACCORDANCE WITH THE PREMIUMS WRITTEN OF EACH
MEMBER INSURER.

(III) UNDER THIS PARAGRAPH, AN AMENDMENT OF THE
PROGRAM OF OPERATION SHALL NOT BECOME EFFECTIVE UNTIL APPROVED BY
AT LEAST A MAJORITY OF THE VOTES CAST ON SUCH WEIGHTED BASIS.

(3) AFTER NOTICE AND OPPORTUNITY TO BE HEARD TO THE
ASSOCIATION, THE COMMISSIONER MAY AMEND THE PROGRAM OF OPERATION
UNDER THIS SUBTITLE.

(I) (1) THE ASSOCIATION SHALL DETERMINE THE PREMIUMS TO BE
CHARGED ON POLICIES ISSUED BY THE ASSOCIATION, SUBJECT TO THE
APPROVAL OF THE COMMISSIONER.

(2) THE PROVISIONS OF § 242 OF THIS ARTICLE SHALL
APPLY TO ANY DETERMINATION OF PREMIUMS MADE UNDER THIS
SUBSECTION.

(J) (1) IF, IN THE JUDGMENT OF THE BOARD OF GOVERNORS, THE
AFFAIRS OF THE ASSOCIATION MAY BE ADMINISTERED SUITABLY AND
EFFICIENTLY, THE ASSOCIATION MAY ENTER INTO A CONTRACT WHEREBY
THE AFFAIRS OF THE ASSOCIATION WOULD BE ADMINISTERED BY A
LICENSED INSURER OR BY THE JOINT INSURANCE ASSOCIATION.

(2) ANY CONTRACT MADE UNDER THIS SUBSECTION MAY NOT
EXCEED 3 YEARS IN DURATION.

(3) NOTWITHSTANDING THE PROVISIONS OF ANY CONTRACT
MADE UNDER THIS SUBSECTION, THE CONTRACTUAL ADMINISTRATION OF THE
AFFAIRS OF THE ASSOCIATION SHALL BE SUBJECT TO CONTINUING
DIRECTION BY THE BOARD OF GOVERNORS AS SET OUT IN THIS SUBTITLE
AND IN THE PROGRAM OF OPERATION.

(K) (1) THE PROGRAM OF OPERATION SHALL PROVIDE FOR A METHOD
OF RECOUPMENT WHEREBY MEMBER INSURERS MAY RECOVER LOSSES AND