3948                                                      VETOES

(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.

(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) ON OR AFTER JULY 1, 1987, SUCCEEDING BOARDS OF
GOVERNORS OF THE ASSOCIATION 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 OPERATION;

(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;