Ch. 11                                      1996 LAWS OF MARYLAND

(6) TO ENCOURAGE THE DELIVERY OF ESSENTIAL PROPERTY
INSURANCE, AND THE HOMEOWNER'S INSURANCE THAT IS PROVIDED BY THE
ASSOCIATION, AT THE MOST REASONABLE COST POSSIBLE, PROVIDED THAT
INSURANCE PRICING BY THE ASSOCIATION:

(I)      IS ACTUARIALLY SELF-SUPPORTING; AND

(II)     DOES NOT ACTIVELY COMPETE WITH INSURANCE PRICING IN
THE VOLUNTARY INSURANCE MARKET.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 478A.

In item (1)(ii) of this section, the former phrase "subject to the conditions
hereinafter stated" is deleted as implicit.

In items (1)(iii) and (6) of this section, the reference to "the homeowner's
insurance that is provided by the Association" is substituted for the former
reference to "certain homeowner's insurance" for clarity. See § 25-401(e) of
this subtitle, which defines "homeowner's insurance" for purposes of this
subtitle.

Defined terms: "Association" § 25-401

"Essential property insurance" § 25-401
"Homeowner's insurance" § 25-401
"Insurance" § 1-101

25-403. JOINT INSURANCE ASSOCIATION.

(A)     ESTABLISHED.

(1)     THERE IS A JOINT INSURANCE ASSOCIATION.

(2)     THE ASSOCIATION IS AN UNINCORPORATED ASSOCIATION.

(B)     COMPOSITION; MEMBERSHIP IN ASSOCIATION REQUIRED.

(1)     THE ASSOCIATION CONSISTS OF ALL INSURERS THAT ARE LICENSED
TO WRITE IN THE STATE, ON A DIRECT BASIS, ESSENTIAL PROPERTY INSURANCE OR
A COMPONENT OF ESSENTIAL PROPERTY INSURANCE IN MULTI-PERIL POLICIES.

(2)     AS A CONDITION OF ITS AUTHORITY TO TRANSACT ESSENTIAL
PROPERTY INSURANCE BUSINESS IN THE STATE, AN INSURER MUST BE AND REMAIN
AN ASSOCIATION MEMBER...

(C)     POWERS.

THE ASSOCIATION MAY:

(1) ESTABLISH A PROGRAM OF OPERATION, SUBJECT TO THE
APPROVAL OF THE COMMISSIONER; AND

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