Ch. 11

1996 LAWS OF MARYLAND

(III)   TWO SHALL BE NOMINATED BY THE NATIONAL ASSOCIATION
OF INDEPENDENT INSURERS;

(IV)   ONE SHALL BE ASSOCIATED WITH A DOMESTIC INSURER THAT
IS NOT AFFILIATED WITH A GROUP LISTED IN ITEMS (I) THROUGH (III) OF THIS
PARAGRAPH; AND

(V)     TWO MAY NOT BE AFFILIATED WITH A MEMBER COMPANY OF
A GROUP LISTED IN ITEMS (I) THROUGH (III) OF THIS PARAGRAPH OR WITH A
DOMESTIC INSURER THAT IS OTHERWISE REPRESENTED ON THE BOARD OF
DIRECTORS.

(3)     THE TERM OF A MEMBER OF THE BOARD OF DIRECTORS IS 1 YEAR.

(4)     IF A GROUP LISTED IN PARAGRAPH (2)(I) THROUGH (III) OF THIS
SUBSECTION FAILS TO SUBMIT THE NAME OF A NOMINEE AT LEAST 10 DAYS BEFORE
THE ELECTION, THE REQUIREMENT THAT TWO DIRECTORS BE FROM AMONG
NOMINEES OF THAT GROUP NEED NOT BE MET FOR THAT YEAR.

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

In subsection (b)(2)(iv) of this section, the reference to a "domestic" insurer is
substituted for the former reference to an insurer "chartered in Maryland" to
conform to the terminology in subsection (b)(2)(v) of this section.

In subsection (b)(4) of this section, the reference to "the name of a nominee
is added for clarity.

Defined terms: "Association" § 20-101
"Association member" § 20-101
"Board of Directors" § 20-101
"Domestic insurer" § 1-101

20-404. CERTIFICATION OF OPERATING LOSS AND ASSESSMENT LIMIT.

(A)     REQUIRED.

ON OR BEFORE MARCH 15 OF EACH YEAR, THE FUND SHALL DETERMINE AND
THE BOARD OF TRUSTEES SHALL CERTIFY TO THE BOARD OF DIRECTORS THE
INFORMATION REQUIRED UNDER SUBSECTIONS (B) AND (C) OF THIS SECTION.

(B)     IDENTIFICATION OF OPERATING LOSS AND ASSESSMENT LIMIT.

SUBJECT TO SUBSECTION (F) OF THIS SECTION, THE FOLLOWING INFORMATION
CERTIFIED TO THE BOARD OF DIRECTORS SHALL BE SEPARATELY IDENTIFIED BY
COMMERCIAL AUTO AND PRIVATE PASSENGER AUTO RESULTS:

(1)     THE STATUTORY OPERATING LOSS FOR THE IMMEDIATELY
PRECEDING CALENDAR YEAR; AND

(2)     A CALCULATION TO YIELD AN ASSESSMENT LIMIT THAT IS
DETERMINED BY SUBTRACTING THE YEAR-END SURPLUS OF THE FUND FOR THE

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