738                                            LAWS OF MARYLAND                                      Ch. 161

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] CORPORATION 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] CORPORATION 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] CORPORATION and adjust, compromise, settle, and pay
covered claims to the extent of the [Association's] CORPORATION'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).

(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.

(7) Reimburse each servicing facility for obligations
of the [Association] CORPORATION paid by the facility and for
expenses incurred by the facility while handling claims on behalf
of the [Association] CORPORATION and shall pay the other expenses
of the [Association] CORPORATION authorized by this subtitle.

(b) The [Association] CORPORATION may:

(1) Employ or retain such persons as are necessary to
handle claims and perform other duties of the [Association]
CORPORATION.