2013 Maryland Code
INSURANCE
§ 20-202 - Board of Trustees [Effective until October 1, 2013]

§20-202.

(a) There is a Board of Trustees of the Fund.

(b) (1) The Board of Trustees consists of 13 members.

(2) Of the 13 members:

(i) seven shall be appointed by the Governor with the advice and consent of the Senate;

(ii) five shall be appointed by the Board of Directors; and

(iii) one shall be the Executive Director.

(3) Except as provided in § 20-203(a)(3) of this subtitle, the Executive Director may vote on all matters before the Board of Trustees.

(c) A member appointed by the Governor may not be actively affiliated with an insurance agency, insurance producer, insurer, or premium finance company that does business with the Fund.

(d) At least three of the five members appointed by the Board of Directors shall be residents of the State.

(e) (1) A member appointed by the Governor serves at the pleasure of the Governor.

(2) The term of a member appointed by the Board of Directors is 4 years and begins on September 1.

(3) At the end of a term, a member appointed by the Board of Directors continues to serve until a successor is chosen and qualifies.

(4) If a member appointed by the Board of Directors ceases to be a member of the Board of Trustees, the Board of Directors shall appoint a successor for the unexpired term.

(5) A member appointed by the Board of Directors is deemed to have resigned, causing a vacancy on the Board of Trustees, if:

(i) the member was employed by an Association member or insurance trade association when the member’s term on the Board of Trustees began; and

(ii) for any reason, the member’s employment with the Association member or insurance trade association ends during the member’s term on the Board of Trustees.

(f) (1) The Board of Trustees shall choose a chairman from among its members.

(2) For each successive term, the position of chairman shall alternate between a gubernatorial appointee and an Association appointee.

(3) The Executive Director may not be the chairman of the Board of Trustees.

(g) Each member of the Board of Trustees is entitled to:

(1) per diem compensation set by the Board of Public Works for each day actually engaged in the discharge of official duties, if the member is not otherwise an officer or employee of the State; and

(2) reimbursement for expenses under the Standard State Travel Regulations, as provided in the budget of the Board of Trustees.

(h) The Board of Trustees shall formulate policy for the Fund.

§ 20-202 - Board of Trustees [Effective October 1, 2013].

(a) Established. -- There is a Board of Trustees of the Fund.

(b) Composition; appointment of members. --

(1) The Board of Trustees consists of 9 members appointed by the Governor with the advice and consent of the Senate.

(2) Of the nine members:

(i) at least three shall have insurance industry expertise; and

(ii) at least two shall have financial management expertise.

(3) Of the members described in paragraph (2)(i) of this subsection, at least one shall be appointed from a list of two or more individuals recommended by the Board of Directors.

(c) Affiliation with insurance entities doing business with the Fund prohibited. -- A member may not be actively affiliated with an insurance agency, insurance producer, insurer, or premium finance company that does business with the Fund.

(d) Qualifications. --

(1) Each member shall be a resident of the State.

(2) In deciding which individuals to appoint, the Governor, to the extent practicable, shall consider the geographic and demographic, including race and gender, diversity of the State.

(e) Oath. -- Before taking office, each appointee to the Board of Trustees shall take the oath required by Article I, § 9 of the Maryland Constitution.

(f) Tenure; vacancies. --

(1) The term of a member is 5 years.

(2) The terms of members are staggered as required by the terms provided for members of the Board of Trustees on October 1, 2013.

(3) At the end of a term, a member continues to serve until a successor is appointed and qualifies.

(4) A member may not serve for more than:

(i) two full terms; or

(ii) a total of 10 years.

(5) If a member of the Board of Trustees ceases to be a member of the Board, the Governor shall appoint a successor for the unexpired term.

(g) Chair. -- The Board of Trustees shall choose a chair from among its members.

(h) Removal. -- The Governor may remove a member of the Board of Trustees for incompetence or misconduct.

(i) Compensation and reimbursement for expenses. --

(1) Each member of the Board of Trustees is entitled to:

(i) reasonable compensation:

1. in the form of salary for work performed for the benefit of the Fund; and

2. as provided in the budget of the Board of Trustees; and

(ii) reimbursement for expenses:

1. incurred in the performance of the member's duties; and

2. as provided in the budget of the Board of Trustees.

(2) Nothing in paragraph (1)(i) of this subsection requires a member of the Board of Trustees to take compensation if the member has a conflict of interest with other employment that precludes the member from taking compensation for work performed for the benefit of the Fund.

(j) Duties. -- The Board of Trustees:

(1) shall adopt rules, bylaws, and procedures; and

(2) may adopt any policy to carry out this title.