Ch. 11

1996 LAWS OF MARYLAND

(1)      A MAXIMUM LIMIT OF LIABILITY OF $500,000 ON REAL OR PERSONAL
PROPERTY COMPRISED OF OR CONTAINED IN:

(I)       A SINGLE BUILDING; OR

(II)     MULTIPLE BUILDINGS SITUATED ON A SINGLE PARCEL OF
LAND OR MULTIPLE, CONTIGUOUS PARCELS OF LAND; AND

(2)      APPROPRIATE SUBLIMITS OF LIABILITY BASED ON CONSTRUCTION,
PROTECTION, AND CLASS OF OCCUPANCY.

(G) SAME — HOMEOWNER'S INSURANCE.

(1)      THE PROGRAM OF OPERATION SHALL IMPLEMENT PROCEDURES TO
MAKE HOMEOWNER'S INSURANCE COVERAGE AVAILABLE THROUGH THE
ASSOCIATION.

(2)      THE HOMEOWNER'S INSURANCE POLICIES THAT THE ASSOCIATION
ISSUES MAY BE LIMITED TO BASIC MARKET VALUE, REPAIR COST, OR ACTUAL CASH
VALUE CONTRACTS FOR OWNER-OCCUPANTS OF ONE-TO-FOUR FAMILY
DWELLINGS, AS APPROVED BY THE COMMISSIONER.

(3)      THE HOMEOWNER'S INSURANCE SHALL BE IMPLEMENTED
THROUGH A PROGRAM THAT ENTITLES ELIGIBLE APPLICANTS TO IMMEDIATE
BINDING OF COVERAGE THROUGH THE ASSOCIATION FOR A REASONABLE PERIOD
OF TIME PENDING UNDERWRITING AND INSPECTION OF THE PREMISES TO
DETERMINE WHETHER THE PREMISES MEET THE ELIGIBILITY STANDARDS OF THE
PROGRAM.

(H) SAME — RECOUPMENT OF ASSESSMENTS.

(1)      THE PROGRAM OF OPERATION SHALL PROVIDE A METHOD OF
RECOUPMENT BY WHICH ASSOCIATION MEMBERS MAY RECOVER LOSSES AND
EXPENSES THAT HAVE BEEN INCURRED BY THE ASSOCIATION AND ASSESSED TO
ASSOCIATION MEMBERS.

(2)      TO RECOUP LOSS AND EXPENSE ASSESSMENTS, THE PROGRAM OF
OPERATION SHALL PROVIDE FOR:

(I)       THE CALCULATION OF THE SURCHARGE OR RATING FACTORS
TO BE ADDED TO DIRECT PREMIUMS WRITTEN FOR ESSENTIAL PROPERTY
INSURANCE AND HOMEOWNER'S INSURANCE COVERING PROPERTY LOCATED IN
THE STATE; AND

(II)     AN ADJUSTMENT EACH YEAR FOR OVER OR UNDER
RECOUPMENT OF ASSESSMENT.

(I) SAME — PARTICIPATION CREDITS.

(1) THE PROGRAM OF OPERATION SHALL DEVELOP A PARTICIPATION
CREDIT FOR DWELLINGS AS AN OFFSET TO ASSOCIATION MEMBER ASSESSMENT FOR
VOLUNTARY WRITINGS IN THOSE AREAS OF THE STATE WITH A SIGNIFICANT

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