Ch. 11

1996 LAWS OF MARYLAND

(1)     THE BOARD OF DIRECTORS SHALL ELECT A CHAIRMAN FROM
AMONG ITS MEMBERS AND APPOINT THREE OF ITS MEMBERS TO BE AN EXECUTIVE
COMMITTEE.

(2)     THE BOARD MAY ELECT OTHER OFFICERS.

(C)     FAIR REPRESENTATION.

WHEN ELECTING MEMBERS OF THE BOARD OF DIRECTORS OR FILLING
VACANCIES ON THE BOARD, CONSIDERATION SHALL BE GIVEN TO, AMONG OTHER
THINGS, WHETHER ALL MEMBER INSURERS ARE FAIRLY REPRESENTED.

(D)     REIMBURSEMENT FOR EXPENSES.

A MEMBER OF THE BOARD OF DIRECTORS MAY BE REIMBURSED BY THE
CORPORATION FOR EXPENSES INCURRED IN CARRYING OUT DUTIES AS A MEMBER
OF THE BOARD.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 507.

In subsection (d) of this section, the reference to reimbursement "by the
Corporation" is substituted for the former reference to reimbursement "from
the assets of the Corporation" for brevity and clarity.

Defined terms: "Corporation" § 9-301
"Member insurer" § 9-301

9-306. POWERS AND DUTIES OF CORPORATION.

(A) OBLIGATION AS TO COVERED CLAIMS — IN GENERAL.

(1)      EXCEPT AS TO SURETY BONDS, THE CORPORATION SHALL BE
OBLIGATED TO THE EXTENT OF THE COVERED CLAIMS EXISTING ON OR BEFORE
THE DETERMINATION OF INSOLVENCY OR ARISING:

(I)      WITHIN 30 DAYS AFTER THE DETERMINATION OF
INSOLVENCY;

(II)     BEFORE THE POLICY EXPIRATION DATE, IF THAT DATE IS LESS
THAN 30 DAYS AFTER THE DETERMINATION OF INSOLVENCY; OR

(III)   BEFORE THE INSURED REPLACES THE POLICY OR CAUSES ITS
CANCELLATION, IF THE INSURED DOES SO WITHIN 30 DAYS AFTER THE
DETERMINATION OF INSOLVENCY.

(2)     EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION, THE
OBLIGATION OF THE CORPORATION UNDER THIS SUBSECTION SHALL INCLUDE
ONLY THAT AMOUNT OF EACH COVERED CLAIM THAT IS IN EXCESS OF $100 AND
LESS THAN $300,000.

(3)     THE CORPORATION SHALL PAY THE FULL AMOUNT OF ANY
COVERED CLAIM ARISING OUT OF A WORKERS' COMPENSATION POLICY.

- 302 -