PARRIS N. GLENDENING, Governor                               Ch. 11

(2) CAUSE POLICIES TO BE ISSUED AND ASSUME AND CEDE
REINSURANCE ON RISKS WRITTEN IN CONFORMITY WITH THE PROGRAM OF
OPERATION.

(D)    PARTICIPATION IN EXPENSES, PROFITS, AND LOSSES.

EACH ASSOCIATION MEMBER SHALL PARTICIPATE IN THE ASSOCIATION'S
EXPENSES, PROFITS, AND LOSSES IN THE PROPORTION THAT THE ASSOCIATION
MEMBER'S PREMIUMS WRITTEN BEAR TO THE AGGREGATE PREMIUMS WRITTEN BY
ALL ASSOCIATION MEMBERS.

(E)     GOVERNING COMMITTEE.

(1)     A GOVERNING COMMITTEE SHALL ADMINISTER THE ASSOCIATION.

(2)     THE GOVERNING COMMITTEE CONSISTS OF NINE ASSOCIATION
MEMBERS.

(3)     ALL ASSOCIATION MEMBERS ANNUALLY SHALL ELECT THE
MEMBERS OF THE GOVERNING COMMITTEE.

(4)     VOTES SHALL BE WEIGHTED IN ACCORDANCE WITH THE PREMIUMS
WRITTEN BY EACH ASSOCIATION MEMBER.

(F)     IMMUNITY FROM LIABILITY.

(1)     AN ASSOCIATION MEMBER, THE ASSOCIATION OR ITS AGENTS OR
EMPLOYEES, THE BOARD OF DIRECTORS, AND THE COMMISSIONER OR THE
COMMISSIONER'S REPRESENTATIVES SHALL HAVE THE IMMUNITY FROM LIABILITY
DESCRIBED IN § 5-334(A) OF THE COURTS ARTICLE.

(2)     AN ASSOCIATION MEMBER, THE ASSOCIATION, THE GOVERNING
COMMITTEE, THEIR AGENTS OR EMPLOYEES, THE COMMISSIONER, AND THE
COMMISSIONER'S AUTHORIZED REPRESENTATIVES SHALL HAVE THE IMMUNITY
FROM LIABILITY DESCRIBED IN § 5-334(B) OF THE COURTS ARTICLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 478H and 478C(1) through (4).

In subsection (c) of this section, the former phrase "pursuant to the provisions
of this subtitle" is deleted as implicit.

The Insurance Article Review Committee notes, for consideration by the
General Assembly, that the "Board of Directors", which is referred to in
subsection (f)(1) of this section, does not exist.

Defined terms: "Association" § 25-401
"Association member" § 25-401
"Commissioner" § 1-101
"Essential property insurance" § 25-401
"Insurance" § 1-101
"Insurer" § 1-101

- 663 -