WILLIAM DONALD SCHAEFER, Governor Ch. 595

(b)  Except as provided in subsection (d) of this section,
an agent of an association or organization is not personally
liable for damages in any suit if:

(1)  The association or organization maintains
insurance covering liability incurred by the association or
organization or its agents, or both, as a result of the acts or
omissions of its agents in providing services or performing
duties on behalf of the association or organization;

(2)  The terms of the insurance policy under which the
insurance is maintained provide coverage for the act or omission
which is the subject matter of the suit and no meritorious basis
exists for the denial of the coverage by the insurance carrier;
and

(3)  The insurance has:

(i) A limit of coverage of not less than
$200,000 per individual claim, and $500,000 per total claims that
arise from the same occurrence; and

(ii) 1. If the insurance has a deductible, a
deductible amount not greater than $10,000 per occurrence; or

2. If there is coinsurance, a rate of
coinsurance not greater than 20 percent.

(c)   In suits to which the provisions of subsection (b) of
this section apply, the plaintiff may recover damages from the
association or organization only to the extent of the applicable
limit of insurance coverage including any amount for which the
association or organization is responsible as a result of any
deductible or coinsurance provisions of such insurance coverage.

(d)  An agent of an association or organization shall be
liable for damages in any suit in which it is found that the
agent acted with malice or gross negligence, to the extent that
the judgment for damages exceeds the limits on liability under
subsection (c) of this section.

(e)  The provisions of this section do not     apply to suits
brought by the Attorney General upon referral by   the Secretary of
State in which willful violations of Article 41,   §§ 3-201 through
3-214 are alleged and proven.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 25, 1989.

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