WILLIAM DONALD SCHAEFER, Governor Ch. 566

percent above the bureau or standard rates.] The homeowner's
insurance policies to be issued by the [association] ASSOCIATION
may be limited to basic market value, repair cost, or actual cash
value contracts for owner-occupants of one-to-four-family
dwellings, as approved by the Commissioner. The homeowner's
insurance shall be implemented through a program entitling
eligible applicants for homeowner's insurance to immediate
binding of coverage through the [Maryland Joint Insurance]
Association pending a reasonable period of time for underwriting
and inspection of the premises so as to determine whether the
premises meet the underwriting eligibility standards of the
program.

(9)  The program of operation shall provide a method of
recoupment whereby members may recover losses and expenses
incurred by the [joint insurance association] ASSOCIATION for
which they have been assessed by the [association] ASSOCIATION.
To recoup loss and expense assessments, the program of operation
shall provide for the calculation of the surcharge or rating
factors to be added to direct written premiums for essential
property insurance and homeowner's insurance covering property
located in this State and shall provide for the adjustment each
year for any over or under recoupment of assessment.

(10)  The program of operation shall develop a participation
credit for habitational dwellings as an offset to member
assessment for voluntary writings in those areas of this State
with a significant proportion of [joint insurance association]
essential property insurance policies OR HOMEOWNER'S INSURANCE
POLICIES ISSUED BY OR ON BEHALF OF THE ASSOCIATION. After
consultation with the [governing committee] GOVERNING COMMITTEE,
the Commissioner shall determine when an area has a significant
proportion of association policies.

(11)  THE PROGRAM OF OPERATION SHALL PROVIDE THAT THE
ASSOCIATION SHALL HAVE NO AGENTS AND THAT THE ASSOCIATION SHALL
DO BUSINESS DIRECTLY WITH APPLICANTS OR WITH LICENSED PRODUCERS
WHICH REPRESENT APPLICANTS.

478D.

(1)  Any person having an insurable interest in real or
tangible personal property at a fixed location [in an urban
area], who has been unable to obtain essential property insurance
or homeowner's insurance, or has been able to obtain such
insurance only after application pursuant to § 242(h)(3) OR §
244Q. of this article, or has been able to obtain only partial
coverage of the value of such property, shall be entitled[,] TO
APPLY TO THE JOINT INSURANCE ASSOCIATION FOR SUCH INSURANCE
COVERAGE.

(2)   [upon] UPON application [therefor] to the [association,
to an inspection of the property by the inspection bureau,]

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