WILLIAM DONALD SCHAEFER, Governor

(b) The Society is a member of the Joint Insurance
Association and the Property and Casualty Insurance Guaranty
Corporation.

551.

(a)  The Society is governed and all of its corporate powers
exercised by a board of directors which consists of no less than
11 members. The directors shall be elected by the members of the
Society in accordance with the articles of incorporation and
bylaws.

The bylaws of the Society shall provide that: (1) Not more
than five members of the board of directors shall be licensed
physicians, at least two of the directors shall have had
substantial experience as an officer or employee of an insurer,
and at least 2 of the directors shall be officers and employees
of the Society responsible for the day-to-day management of the
Society; and (2) the board of directors shall consist of persons
who live in various and different geographical areas throughout
the State.

(b)  Within 30 days of their appointment by the Governor,
the initial board of directors shall cause articles of
incorporation and bylaws to be prepared and filed in accordance
with the law of Corporations (Article 23) and the Insurance Code
(Article 48A) of the Code, including the provisions of this
subtitle.

(c)  Upon approval of application for the certificate of
authority the Commissioner shall issue the certificate
authorizing the Society or subsidiaries of the Society to issue
policies of casualty insurance as follows:

(1)  Insurance against liability of physicians or
other health care providers for injury arising out of the
rendering of or failure to render professional services by the
insured.

(2)  Insurance against the liability of any person for
whose acts or omissions a physician or other health care provider
is responsible under the provisions of paragraph (1), or with
whom he is associated, including partners, employees, employers,
associates, consultants, or a professional service corporation
whose stock is owned by an insured.

(3)  Insurance against other liability for injury by
persons employed in, by property used in, or by activities
incidental to, the practice of medicine or other health
occupations by the named insured, when issued as incidental
coverage with or supplemental to insurance specified in paragraph
(1).

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