Ch. 566                                          LAWS OF MARYLAND

necessary to commence operations,] establishment of necessary
facilities, management of the [association] ASSOCIATION,
assessment of members to defray losses and expenses, commission
arrangements, reasonable and objective underwriting standards,
acceptance and cession of reinsurance, and procedures for
determining amounts of insurance to be provided. [The program of
operation shall be subject to approval by the Commissioner, after
consultation with affected individuals and organizations, and
shall take effect ten days after having been approved by him. If
the Commissioner disapproves all or any part of the proposed
program of operation, the governing committee shall within thirty
days submit for review an appropriately revised plan of operation
or part thereof, and, if the governing committee fails to do so,
the Commissioner shall promulgate a program of operation or part
thereof, as the case may be.]

(II) THE PROGRAM OF OPERATION SHALL PROVIDE FOR THE
ESTABLISHMENT OF A MAXIMUM LIMIT OF LIABILITY OF $500,000 ON
PROPERTY AT ANY ONE LOCATION—FOR ANY ONE POLICY, AND SHALL
PROVIDE FOR APPROPRIATE SUBLIMITS OF LIABILITY BASED UPON
CONSTRUCTION, PROTECTION, AND CLASS OF OCCUPANCY. IN THIS
SECTION, ANY ONE LOCATION MEANS REAL AND PERSONAL PROPERTY
COMPRISED OF, OR CONTAINED IN A SINGLE BUILDING, OR COMPRISED
OF, OR CONTAINED IN MULTIPLE BUILDINGS SITUATED ON A SINGLE LAND
PARCEL OR MULTIPLE LAND PARCELS CONTIGUOUS TO EACH OTHER.

(6)  The [association] ASSOCIATION may, on its own
initiative, with the approval of the Commissioner, [or at the
request of the Commissioner,] amend the program of operation;
however amendments to the program of operation must be voted on
and approved by the members of the [association] ASSOCIATION.
Votes shall be cast and counted on a weighted basis in accordance
with the premiums written of each member. An amendment to the
program of operation shall not become effective until approved by
at least a majority of the votes cast on such weighted basis.

(7)  The program of operation shall provide for:
(i) immediate binding of eligible risks; (ii) notwithstanding
any provisions of §§ 240A through 240D of this article to the
contrary, underwriting guidelines and procedures to be utilized
by the [association] ASSOCIATION which permit the [association]
ASSOCIATION to shorten the cancellation period of policies of
essential property insurance and homeowner's insurance for
certain conditions that are determined to exist; (iii) a premium
installment plan; and (iv) the establishment of adequate
[marketing and] service facilities [in all designated areas].

(8)  The program of operation shall implement procedures
whereby homeowner's insurance coverage becomes available through
the [joint insurance association] JOINT INSURANCE ASSOCIATION.
[However, the rate structure for these policies of homeowner's
insurance shall be actuarially self-supporting, but in no event
shall be less than the bureau or standard rates nor more than 30

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