PARRIS N. GLENDENING, Governor

Ch. 11

(1)      WITH THE APPROVAL OF THE COMMISSIONER, THE ASSOCIATION
MAY AMEND THE PROGRAM OF OPERATION.

(2)      ASSOCIATION MEMBERS SHALL VOTE ON PROPOSED AMENDMENTS
TO THE PROGRAM OF OPERATION.

(3)      VOTES SHALL BE CAST AND COUNTED ON A WEIGHTED BASIS IN
ACCORDANCE WITH THE PREMIUMS WRITTEN BY EACH ASSOCIATION MEMBER.

(4)      AN AMENDMENT TO THE PROGRAM OF OPERATION IS NOT
EFFECTIVE UNTIL APPROVED BY A MAJORITY OF THE VOTES CAST BY ASSOCIATION
MEMBERS.

(D)     MANDATORY PROVISIONS — IN GENERAL.
THE PROGRAM OF OPERATION SHALL PROVIDE FOR:

(1)      ESTABLISHMENT OF ADEQUATE SERVICE FACILITIES AND OTHER
NECESSARY FACILITIES;

(2)      MANAGEMENT OF THE ASSOCIATION;

(3)      ASSESSMENT OF ASSOCIATION MEMBERS TO DEFRAY LOSSES AND
EXPENSES;

(4)      COMMISSION ARRANGEMENTS;

(5)      REASONABLE AND OBJECTIVE UNDERWRITING STANDARDS;

(6)      ACCEPTANCE AND CESSION OF REINSURANCE;

(7)      PROCEDURES TO DETERMINE AMOUNTS OF INSURANCE TO BE
PROVIDED;

(8)      IMMEDIATE BINDING OF ELIGIBLE RISKS;

(9)      A PREMIUM INSTALLMENT PLAN; AND

(10)    NOTWITHSTANDING §§ XX-XXX THROUGH XX-XXX [48A §§ 240A
THROUGH 240D] OF THIS ARTICLE, UNDERWRITING GUIDELINES AND PROCEDURES
THAT ALLOW THE ASSOCIATION TO SHORTEN THE CANCELLATION PERIOD FOR
POLICIES OF ESSENTIAL PROPERTY INSURANCE AND HOMEOWNER'S INSURANCE
FOR CERTAIN CONDITIONS THAT ARE DETERMINED TO EXIST.

(E)     SAME — AGENTS.

THE PROGRAM OF OPERATION SHALL PROVIDE THAT THE ASSOCIATION MAY
NOT APPOINT AGENTS AND SHALL DO BUSINESS DIRECTLY WITH APPLICANTS OR
WITH LICENSED PRODUCERS THAT REPRESENT APPLICANTS.

(F)      SAME — LIMITS OF LIABILITY.

THE PROGRAM OF OPERATION SHALL ESTABLISH:

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