Ch. 11

1996 LAWS OF MARYLAND

"Insurance" § 1-101
"Life insurance" § 1-101
"Unauthorized insurer" § 1-101

9-304. CORPORATION ESTABLISHED; MEMBERSHIP; PLAN OF OPERATION;
ACCOUNTS; STATUS.

(A)     CORPORATION ESTABLISHED.

(1)      THERE IS A PROPERTY AND CASUALTY INSURANCE GUARANTY
CORPORATION.

(2)      THE CORPORATION IS A PRIVATE, NONPROFIT, NONSTOCK
CORPORATION.

(B)     MEMBERSHIP.

AS A CONDITION OF ITS AUTHORITY TO TRANSACT INSURANCE BUSINESS IN
THE STATE, EACH MEMBER INSURER MUST BE AND REMAIN A MEMBER OF THE
CORPORATION.

(C)     PLAN OF OPERATION; BOARD OF DIRECTORS.
THE CORPORATION SHALL:

(1)      PERFORM ITS FUNCTIONS IN ACCORDANCE WITH A PLAN OF
OPERATION ESTABLISHED AND APPROVED UNDER § 9-307 OF THIS SUBTITLE; AND

(2)      EXERCISE ITS POWERS THROUGH A BOARD OF DIRECTORS
ESTABLISHED UNDER § 9-305 OF THIS SUBTITLE.

(D)     ACCOUNTS.

FOR ADMINISTRATION AND ASSESSMENT PURPOSES, THE CORPORATION
SHALL BE DIVIDED INTO THE FOLLOWING FOUR SEPARATE ACCOUNTS:

(1)      THE TITLE INSURANCE ACCOUNT;

(2)      THE MOTOR VEHICLE INSURANCE ACCOUNT;

(3)      THE WORKERS' COMPENSATION ACCOUNT; AND

(4)      THE ACCOUNT FOR ALL OTHER INSURANCE TO WHICH THIS
SUBTITLE APPLIES.

(E)     POWERS, PRIVILEGES, AND IMMUNITIES.

EXCEPT AS OTHERWISE PROVIDED IN THIS SUBTITLE, THE CORPORATION HAS
PERPETUAL EXISTENCE AND THE POWERS, PRIVILEGES, AND IMMUNITIES GRANTED
BY THE APPLICABLE PROVISIONS OF THE CORPORATIONS AND ASSOCIATIONS
ARTICLE.

(F)      INDEPENDENT FROM STATE.

- 300 -