# Insurance (GIN)

## Title 20. Maryland Automobile Insurance Fund

### Subtitle 2. Administration of Fund

#### Section 20-201

(a) There is a Maryland Automobile Insurance Fund.

(b) The Fund is independent of all State units.

(c) The Fund is a member of the Property and Casualty Insurance Guaranty Corporation.

(d)

  (1) Except as otherwise provided by law, the Fund is subject to the provisions of this article.

  (2) Except as provided in paragraph (3) of this subsection, the Fund is not subject to any law, including Sec. 6-106 of the State Government Article, that affects governmental units.

  (3) The Fund is subject to:

    (i) Title 4 of the General Provisions Article;

    (ii) the Maryland Public Ethics Law;

    (iii) Title 10, Subtitle 1 of the State Government Article with respect to regulations adopted under Subtitle 6 of this title;

    (iv) Title 12 of the State Government Article; and

    (v) Title 5, Subtitle 3 of the State Personnel and Pensions Article.

  (4) Paragraph (2) of this subsection does not affect the exemption from property tax under Sec. 7-210 of the Tax - Property Article.

#### Section 20-202

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

(b)

  (1) The Board of Trustees consists of nine 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) 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)

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

(f)

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

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

(i)

  (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) The Board of Trustees:

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

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

#### Section 20-203

(a)

  (1) The Board of Trustees shall:

    (i) appoint the Executive Director of the Fund; and

    (ii) employ attorneys to advise and represent the Fund in all legal matters and, where necessary, to sue or defend suits in the name of the Fund.

  (2) The Executive Director serves at the pleasure of the Board of Trustees.

  (3) If the Board of Trustees fails to agree on a successor Executive Director, the Governor shall appoint the successor.

(b)

  (1) The Executive Director:

    (i) is the administrative head of the Fund; and

    (ii) shall exercise the powers and perform the duties conferred on the Fund by this title, except for those powers and duties conferred on the Board of Trustees.

  (2) The Board of Trustees shall advise the Executive Director on the exercise of the powers and duties conferred on the Executive Director by this title.

(c) The Board of Trustees shall determine the compensation of the Executive Director.

#### Section 20-204

(a)

  (1) Except as provided in paragraph (2) of this subsection, employees of the Fund are not in the State Personnel Management System.

  (2) A skilled service employee of the Fund hired before July 1, 2013, in a nonprofessional or nontechnical position shall remain in the skilled service in the State Personnel Management System or its equivalent as long as the employee remains in a nonprofessional or nontechnical position with the Fund.

  (3) The Executive Director shall appoint and remove employees of the Fund in accordance with the policies of the Board of Trustees.

  (4) Notwithstanding any other provision of law, the Executive Director may appoint claims adjusters, attorneys, and other necessary personnel directly as employees or on a contract basis.

(b) The Executive Director shall determine and administer the compensation of the employees of the Fund with the approval of the Board of Trustees.

(c) Except as otherwise provided in this subtitle, an employee of the Fund is not subject to any law, regulation, or executive order governing State employee compensation, including furloughs, salary reductions, and any other General Fund cost-saving measure.

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Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)