WILLIAM DONALD SCHAEFER, Governor                   Ch. 663

CHAPTER 663

(House Bill 375)

AN ACT concerning

Property Insurance - Public Entities - Pooling

FOR the purpose of authorizing certain public entities to pool
together for the purpose of purchasing property insurance or
self-insuring property risks; and defining a certain term.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code
Section 8(b) and 482B
Annotated Code of Maryland
(1986 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

(b) The "insurance business" does not include the pooling
together by public entities for the purpose of self-insuring
casualty OR PROPERTY risks.

482B.

(a)  "Public entity" means any political subdivision or unit
of State or local government, including any nonprofit or nonstock
corporation that is exempt from taxation under Section §
501(c)(3) or (4) § 501(C)(4) of the Internal Revenue Code of 1954
and receives 50 percent or more of its annual operating budget
from the State or local government.

(b)  Public entities may pool together for the purpose of
purchasing casualty OR PROPERTY insurance or self-insuring
casualty OR PROPERTY risks.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1987.

Approved June 2, 1987.

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