1536                             Laws of Maryland                      [Ch. 715

(d) Assessments for funds to meet the requirements of the Asso-
ciation with respect to an impaired insurer shall not be made until
necessary to implement the purposes of this Act. Classification of
assessments under subsection (2) and computation of assessments
under this subsection shall be made with a reasonable degree of
accuracy, recognizing that exact determination may not always be
possible.

(4) The Association may abate or defer, in whole or in part,
the assessment of a member insurer, if, in the opinion of the board,
payment of the assessment would endanger the ability of the member
insurer to fulfill its contractual obligations. In the event an assess-
ment against a member insurer is abated or deferred, in whole or in
part, the amount by which such assessment is abated or deferred
shall be assessed against the other member insurers in a manner
consistent with the basis for assessments set forth in this section.

(5)    The total of all assessments upon a member insurer for each
account shall not in any one calendar year exceed 2% of such insur-
er's premiums in this State on the policies covered by the account.
In the event an assessment against a member insurer is reduced
because of this limitation, the amount by which such assessment is
reduced shall be assessed against the other member insurers in a
manner consistent with the basis for assessments set forth in this
section. If the maximum assessments in any one calendar year
against all insurers, together with the other assets of the Asso-
ciation in any account, are insufficient to provide in such account the
amount necessary to carry out the responsibilities of the Association,
the necessary additional funds shall be assessed against the member
insurers as soon thereafter as permitted by this Act.

(6)    The board may, by an equitable method as established in the
plan of operation, refund to member insurers, in proportion to the
contribution of each insurer to that account, the amount by which
the assets of the account exceed the amount the board finds is neces-
sary to carry out during the coming year the obligations of the Asso-
ciation with regard to that amount, including assets accruing from
net realized gains and income from investments, provided such re-
fund is approved by the Commissioner. A reasonable amount may be
retained in any account to provide funds for the continuing expenses
of the Association and for future losses if refunds are impractical.

(7)    It shall be proper for any member insurer, in determining
its premium rates and policyowner dividends as to any kind of insur-
ance within the scope of this Act, to consider the amount reasonably
necessary to meet its assessment obligations under this Act.

(8)    The Association shall issue to each insurer paying an assess-
ment under this Act a certificate of contribution, in A form prescribed
by the Commissioner, for the amount so paid. All outstanding cer-
tificates shall be of equal dignity and priority without reference to
amounts or dates of issue. A certificate of contribution may be shown
by the insurer in its financial statement as an asset in such form and
for such amount, if any, and period of time as the Commissioner may
approve.

513. Plan of Operation.

(1)(a) The Association shall submit to the Commissioner a plan
of operation and any amendments thereto necessary or suitable to