Ch. 11

1996 LAWS OF MARYLAND

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:

(1)      MAY BE REIMBURSED BY THE CORPORATION FOR EXPENSES
INCURRED IN CARRYING OUT DUTIES AS A MEMBER OF THE BOARD; BUT

(2)     MAY NOT OTHERWISE RECEIVE COMPENSATION FROM THE
CORPORATION FOR THE MEMBER'S SERVICE.

(E)     OVERSIGHT OF FUNDS.

(1)      THE BOARD OF DIRECTORS HAS GENERAL OVERSIGHT AUTHORITY
OVER FUNDS PROVIDED UNDER THIS SUBTITLE TO THE BOARD OF DIRECTORS OR
CORPORATION.

(2)     AT ANY TIME OR IN ANY MANNER AS THE BOARD MAY DIRECT, A
RECEIVER, LIQUIDATOR, REHABILITATOR, OR CONSERVATOR APPOINTED UNDER
THIS SUBTITLE SHALL MAKE A DETAILED ACCOUNTING OF EXPENDITURES TO THE
BOARD.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 526(2), (3), (4), (5), and the first, second, and
third sentences of (1).

In subsection (d)(1) 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.

In subsection (e)(1) of this section, the former words "by any person" are
deleted as surplusage.

The fourth and fifth sentences of former Art. 48A, § 526(1), which related to
the selection of the initial members and the organizational meeting of the
Board of Directors, are deleted as obsolete.

Defined terms: "Corporation" § 9-401
"Member insurer" § 9-401

9-407. POWERS AND DUTIES OF CORPORATION.

(A) DOMESTIC IMPAIRED INSURER - BEFORE ORDER OF LIQUIDATION OR
REHABILITATION.

FOR A DOMESTIC INSURER THAT IS AN IMPAIRED INSURER, BEFORE AN
ORDER OF LIQUIDATION OR REHABILITATION AND SUBJECT TO ANY CONDITIONS
IMPOSED BY THE CORPORATION THAT DO NOT IMPAIR THE CONTRACTUAL
OBLIGATIONS OF THE IMPAIRED INSURER, IF THE IMPAIRED INSURER AND
COMMISSIONER APPROVE, THE CORPORATION MAY:

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