PARRIS N. GLENDENING, Governor

Ch. 35

(1) THE SURPLUS DEPOSITS OF SUBSCRIBERS SHALL BE ALLOWED AS
ASSETS, EXCEPT THAT ANY PREMIUM DEPOSITS THAT ARE DELINQUENT FOR 90
DAYS OR MORE SHALL BE CHARGED FIRST AGAINST THE SURPLUS DEPOSITS.

(2) PREMIUM DEPOSITS THAT ARE DELINQUENT FOR LESS THAN 90
DAYS SHALL BE ALLOWED AS ASSETS.

(3) AN ASSESSMENT LEVIED ON SUBSCRIBERS, BUT NOT COLLECTED,
MAY NOT BE ALLOWED AS AN ASSET.

(4) THE CONTINGENT LIABILITY OF SUBSCRIBERS MAY NOT BE
ALLOWED AS AN ASSET.

(C) LIABILITIES.

(1) THE COMMISSIONER SHALL CHARGE AS LIABILITIES THE SAME
RESERVES AS ARE REQUIRED OF INCORPORATED INSURERS THAT ISSUE
NONASSESSABLE POLICIES ON A RESERVE BASIS.

(2) THE SURPLUS DEPOSITS OF SUBSCRIBERS MAY NOT BE CHARGED AS
A LIABILITY.

(D) COMPUTATION OF RESERVES.

THE COMPUTATION OF RESERVES SHALL BE BASED ON PREMIUM DEPOSITS
OTHER THAN MEMBERSHIP FEES.

(E) AFFIDAVIT OF ATTORNEY IN FACT.

AT ANY TIME, THE COMMISSIONER MAY REQUIRE THE ATTORNEY IN FACT OF
A RECIPROCAL INSURER TO SUBMIT AN AFFIDAVIT THAT SHOWS THE AMOUNT OF
ANNUAL SAVINGS, NOT ALREADY CREDITED TO SUBSCRIBERS, THAT ARE DUE BUT
NOT PAID.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 291.

In subsection (b)(1) of this section, the reference to 90 days "or more" is
added to clarify that a premium deposit need not be delinquent for exactly 90
days.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101
"Premium" § 1-101
"Reciprocal insurer" § 1-101
"Subscriber" § 3-201

3-212. ATTORNEY IN FACT; POWER OF ATTORNEY.
(A) ORGANIZATION OF ATTORNEY IN FACT.

THE ATTORNEY IN FACT OF A RECIPROCAL INSURER MAY BE AN INDIVIDUAL,
FIRM, OR CORPORATION.

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