The purpose of the Fund is to provide the financial security required under § 17–103 of the Transportation Article to those eligible persons that are unable to obtain it from an Association member. Money of the Fund consists of revenues, premiums, and other receipts provided by law. All operating expenses of the Fund shall be paid from the money collected by or for the Fund. Subject to subparagraphs (ii) through (iv) of this paragraph, money and property available to the Fund may be used for the general purposes of the Fund. Premiums collected and income accruing from those premiums may be used only for the payment of claims arising under policies issued by the Fund and for the administrative expenses of the Fund. The Fund shall keep separate records of any income and expenses directly attributable to the Uninsured Division, including the processing and payment of unsatisfied claims under Subtitle 6 of this title. The Fund shall keep separate records of any income and expenses directly attributable to its commercial policy and claims operations.

The account of the Fund is a special fund account and is not a part of the State Treasury. The State may not provide General Fund appropriations to the Fund. The debts and obligations of the Fund are not a debt of the State or a pledge of the credit of the State.

A financial management committee of the Fund shall manage and invest all money collected by or for the Fund through premiums, earnings from investments, or from other sources. The financial management committee consists of the Executive Director and two members of the Board of Trustees who have financial management expertise, chosen by the Board of Trustees. Whenever the amount of money in the Fund exceeds the amount that the Executive Director believes is likely to be required immediately, the financial management committee may manage the excess as it considers appropriate and invest the excess in investments legal for casualty insurers under §§ 5–601 through 5–609 of this article. If use of the excess becomes necessary or expedient, the financial management committee may collect, sell, or otherwise realize on the investment and any accrued interest. Consistent with minority business purchasing standards applicable to units of State government under the State Finance and Procurement Article and consistent with the fiduciary duties of the financial management committee, the financial management committee shall attempt to use to the greatest extent feasible minority business enterprises to provide brokerage and investment management services to the committee. For purposes of this subsection, brokerage and investment management services shall include services relating to all allocated asset classes. To assist it in achieving the goal described under paragraph (1) of this subsection, the financial management committee shall undertake measures to remove any barriers that limit full participation by minority business enterprises in brokerage and investment management services opportunities afforded by the Fund. The measures undertaken by the financial management committee shall include the use of a wide variety of media, including the Fund’s website, to provide notice to a broad and varied range of potential providers about the brokerage and investment management services opportunities afforded by the Fund. In conjunction with the Governor’s Office of Small, Minority, and Women Business Affairs, the financial management committee shall develop guidelines to assist the committee in identifying and evaluating qualified minority business enterprises in order to help the Fund achieve the objective for greater use of minority business enterprises for brokerage and investment management services. On or before September 1 each year, the financial management committee shall submit a report to the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 2–1257 of the State Government Article, the General Assembly on: the identity of the minority business enterprise brokerage and investment management services firms used by the financial management committee in the immediately preceding fiscal year; the percentage and dollar value of the Fund assets that are under the investment control of minority business enterprise brokerage and investment management services firms in each allocated asset class; and the measures the financial management committee undertook in the immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection.

An audit committee, composed of members of the Board of Trustees, shall require the Fund’s internal auditor to conduct fiscal compliance and fiscal audits of the accounts and transactions of the Fund each year. A fiscal compliance audit shall: examine financial transactions and records and internal controls; evaluate compliance with applicable laws and regulations; and examine electronic data processing operations. If an independent auditor conducts a fiscal audit of the Fund, the audit committee shall direct the Fund’s internal auditors not to duplicate the fiscal audit for the same period.

The Fund shall provide each commercial policyholder with a notice stating the expiration date of the current policy at least 45 days before the expiration of the current policy. If a commercial policyholder requests a rewritten policy with the Fund and the policyholder’s fund producer is unable to generate a new rewritten policy quote without the assistance of the Fund, the Fund shall provide the policyholder’s fund producer with a rewritten policy quote within 7 days after the Fund has received all necessary information from the fund producer.

In this section, “company action level RBC” has the meaning stated in § 4–301(n)(1) of this article. The Fund shall calculate and report its RBC level in accordance with Title 4, Subtitle 3 of this article. Beginning December 31, 2026, the Fund shall maintain total adjusted capital, as defined in § 4–301(r) of this article, in an amount that is greater than or equal to its company action level RBC.