PARRIS N. GLENDENING, Governor

Ch. 11

Defined terms: "Commissioner" § 1-101
"Fund" § 20-101

SUBTITLE 4. INDUSTRY AUTOMOBILE INSURANCE ASSOCIATION.

20-401. ESTABLISHED.

THERE IS AN INDUSTRY AUTOMOBILE INSURANCE ASSOCIATION.

REVISOR'S NOTE: This section is new language derived without substantive
change from the first sentence of former Art. 48A, § 243M(a).

20-402. COMPOSITION.

(A)     IN GENERAL.

THE ASSOCIATION CONSISTS OF ALL INSURERS EXCEPT FOR THE FUND THAT
ARE LICENSED TO WRITE ON A DIRECT BASIS MOTOR VEHICLE LIABILITY
INSURANCE OR PHYSICAL DAMAGE INSURANCE IN THE STATE.

(B)     MEMBERSHIP IN ASSOCIATION REQUIRED.

AS A CONDITION OF ITS AUTHORITY TO WRITE MOTOR VEHICLE LIABILITY
INSURANCE OR PHYSICAL DAMAGE INSURANCE IN THE STATE, AN INSURER MUST
BE AND REMAIN AN ASSOCIATION MEMBER.

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

Defined terms: "Association" § 20-101
"Association member" § 20-101
"Certificate of authority" § 20-101
"Fund" § 20-101
"Insurer" § 1-101

"Motor vehicle liability insurance" § 20-101
"Physical damage insurance" § 20-101

20-403. BOARD OF DIRECTORS.

(A)     ESTABLISHED.

THERE IS A BOARD OF DIRECTORS TO ADMINISTER THE ASSOCIATION.

(B)     MEMBERSHIP.

(1)     THE BOARD OF DIRECTORS CONSISTS OF NINE MEMBERS ELECTED
BY ASSOCIATION MEMBERS.

(2)      OF THE NINE MEMBERS OF THE BOARD OF DIRECTORS:

(I)      TWO SHALL BE NOMINATED BY THE AMERICAN INSURANCE
ASSOCIATION;

(II)     TWO SHALL BE NOMINATED BY THE AMERICAN MUTUAL
INSURANCE ALLIANCE;

- 543 -