Ch. 11

1996 LAWS OF MARYLAND

Fund terminated June 1, 1982. See Ch. 714, § 3, Acts of 1977, as amended by
Ch. 46, Acts of 1980.

Defined terms: "Mutual insurer" § 1-101
"Society" § 24-101

24-104. BOARD OF DIRECTORS.

(A)     ESTABLISHED.

THERE IS A BOARD OF DIRECTORS OF THE SOCIETY.

(B)     COMPOSITION.

(1)     THERE SHALL BE AT LEAST 11 DIRECTORS ON THE BOARD.

(2)     THE DIRECTORS SHALL BE ELECTED BY THE MEMBERS OF THE
SOCIETY IN ACCORDANCE WITH THE ARTICLES OF INCORPORATION AND BYLAWS
OF THE SOCIETY.

(C)     BOARD TO GOVERN SOCIETY.

THE BOARD OF DIRECTORS GOVERNS THE SOCIETY AND EXERCISES THE
POWERS OF THE SOCIETY.

REVISOR'S NOTE: This section is new language derived without substantive
change from the first and fifth sentences of former Art. 48A, § 569(a).

The second, third, and fourth sentences of former Art. 48A, § 569(a), which
related to the appointment and terms of service of the members of the initial
Board of Directors of the Society, are deleted as obsolete.

Former Art. 48A, § 569(b), which required the initial Board of Directors to
prepare and file articles of incorporation and bylaws within 30 days after
appointment by the Governor, is deleted as obsolete.

Defined term: "Society" § 24-101
24-105. ADMINISTRATION OF SOCIETY BY LICENSED INSURER.

(A)     IN GENERAL.

(1)      IF THE BOARD OF DIRECTORS DETERMINES THAT THE AFFAIRS OF
THE SOCIETY MAY BE ADMINISTERED SUITABLY AND EFFICIENTLY, THE SOCIETY
MAY ENTER INTO A CONTRACT WITH A LICENSED INSURER TO ADMINISTER THE
AFFAIRS OF THE SOCIETY, SUBJECT TO THE CONTINUING DIRECTION OF THE
BOARD OF DIRECTORS SPECIFIED IN THE ARTICLES OF INCORPORATION AND
BYLAWS OF THE SOCIETY AND THE CONTRACT.

(2)     A CONTRACT MAY NOT EXCEED 5 YEARS.

(B)     ACTION BY COMMISSIONER ON CONTRACT.

(1) ON EXECUTION OF THE CONTRACT, THE SOCIETY PROMPTLY SHALL
FILE A TRUE COPY OF THE CONTRACT WITH THE COMMISSIONER:

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