Ch. 566                                          LAWS OF MARYLAND

478A.

The purposes of this subtitle are:

(1) TO AUTHORIZE AND ESTABLISH THE JOINT INSURANCE
ASSOCIATION.

[(1)] (2) To authorize and establish a program which
would make essential property insurance [available] AND CERTAIN
HOMEOWNER'S INSURANCE AVAILABLE FROM THE JOINT INSURANCE
ASSOCIATION to all qualified applicants, with the least possible
administrative detail and expense, subject to the conditions
hereinafter stated.

[(2) To enable insurers to become eligible for
federal reinsurance under the provisions of the National
Insurance Development Program (12 U.S.C., Section 1749bbb et
seq., as found in Public Law 95-557 of 1978.)]

(3)  To encourage the improvement of the condition of
properties located in [the urban areas of] Maryland and to
further orderly community development generally.

(4)  To publicize the purposes and procedures of this
subtitle to the end that no one may fail to seek its assistance
through ignorance thereof.

[(5) To encourage the delivery of certain homeowner's
insurance at a rate that is actuarially self-supporting, but in
no event shall be less than bureau or standard rates nor more
than 30 percent above the bureau or standard rates.

(6)  To authorize the Maryland Joint Insurance
Association to bind eligible risks, to use premium installment
payment plans, and to establish reasonable service standards in
the program of operation subject to the approval and review of
the Commissioner of Insurance.

(7)  To authorize the Maryland Joint Insurance
Association to offer certain homeowner's insurance coverage for
eligible risks.

(8)  To broaden representation on the Maryland Joint
Insurance Association Governing Committee by including public
representatives.]

[(9)] (5) To encourage the delivery of essential
property insurance AND CERTAIN HOMEOWNER'S INSURANCE at the most
reasonable cost possible, provided the pricing of [essential
property] insurance [in the Maryland Joint Insurance Association]
BY THE JOINT INSURANCE ASSOCIATION SHALL BE ACTUARIALLY
SELF-SUPPORTING AND shall not actively compete with the pricing
of [property] insurance in the voluntary insurance market.

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