PARRIS N. GLENDENING, Governor                                   Ch. 11

SUBTITLE 3. PURPOSE AND GENERAL PROVISIONS OF FUND.
20-301. PURPOSE OF FUND; COMPOSITION; USE.

(A)     PURPOSE OF FUND.

THE PURPOSE OF THE FUND IS TO PROVIDE THE FINANCIAL SECURITY
REQUIRED UNDER § 17-103 OF THE TRANSPORTATION ARTICLE TO THOSE ELIGIBLE
PERSONS THAT ARE UNABLE TO OBTAIN IT FROM AN ASSOCIATION MEMBER.

(B)     COMPOSITION.

MONEYS OF THE FUND CONSIST OF REVENUES, PREMIUMS, AND OTHER
RECEIPTS PROVIDED BY LAW.

(C)     USE.

(1)      ALL OPERATING EXPENSES OF THE FUND SHALL BE PAID FROM THE
MONEYS COLLECTED BY OR FOR THE FUND.

(2)      (I) SUBJECT TO SUBPARAGRAPHS (II) THROUGH (IV) OF THIS
PARAGRAPH, MONEYS AND PROPERTY AVAILABLE TO THE FUND MAY BE USED FOR
THE GENERAL PURPOSES OF THE FUND.

(II)     PREMIUMS COLLECTED AND INCOME ACCRUING FROM THOSE
PREMIUMS MAY BE USED ONLY FOR THE PAYMENT OF CLAIMS ARISING UNDER
POLICIES ISSUED BY THE FUND AND FOR THE ADMINISTRATIVE EXPENSES OF THE
FUND.

(III)   THE FUND SHALL KEEP SEPARATE RECORDS OF ANY INCOME
AND EXPENSES DIRECTLY ATTRIBUTABLE TO THE PROCESSING AND PAYMENT OF
UNSATISFIED CLAIMS UNDER SUBTITLE 6 OF THIS TITLE.

(IV)    THE FUND SHALL KEEP SEPARATE RECORDS OF ANY INCOME
AND EXPENSES DIRECTLY ATTRIBUTABLE TO ITS COMMERCIAL POLICY AND
CLAIMS OPERATIONS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 243A(d) and the third sentence of (a), §
243B(a)(3), and the second sentence of § 243(a).

In subsection (a) of this section, the reference to "the financial security
required under § 17-103 of the Transportation Article" is substituted for the
former vague reference to "automobile insurance" to clarify the precise form
of insurance that the Fund was created to provide.

Also in subsection (a) of this section, the reference to "an Association
member" is substituted for the former phrase "private market" to conform to
the terminology used in this title.

In subsection (b) of this section, the reference to revenues, premiums, and
other receipts provided "by law" is substituted for the former reference to
revenues, premiums, and other receipts "provided for in this subtitle" in light

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