1134                            LAWS OF MARYLAND                       [CH. 553

(3)   Procure the audit of the accounts and records of the insurer
and of the attorney at the expense of the insurer; and

(4)   Have such additional powers and functions as may be con-
ferred by the subscribers' agreement.

294.    Subscribers' Liability.

(a)   The liability of each subscriber, other than as to a nonassess-
able policy, for the obligations of the reciprocal insurer shall be an
individual, several and proportionate liability, and not joint.

(b)   Except as to a nonassessable policy, each subscriber shall
have a contingent assessment liability, in the amount provided for
in the power of attorney or in the subscribers' agreement, for pay-
ment of actual losses and expenses incurred while his policy was in
force. Such contingent liability may be at the rate of not less than
one (1) additional premium NOR MORE THAN TEN TIMES THE
ANNUAL PREMIUM not to exceed one annual premium or pre-
mium deposit stated in the policy, and the maximum aggregate
thereof shall be computed in the manner set forth in section 295 of
this subtitle.

(c)   Each assessable policy issued by the insurer shall contain a
statement of the contingent liability.

295.    Assessments.

(a)  Assessments may from time to time be levied upon subscribers
of a domestic reciprocal insurer liable therefor under the terms of
their policies by the attorney upon approval in advance by the sub-
scribers' advisory committee and the Commissioner; or by the Com-
missioner in liquidation of the insurer.

(b)   Each subscriber's share of a deficiency for which an assess-
ment is made, but not exceeding in any event his aggregate con-
tingent liability as stated in accordance with section 294 of this sub-
title, shall be computed by applying to the premium earned on the
subscriber's policy or policies during the period to be covered by the
assessment, the ratio of the total deficiency to the total premiums
earned during such period upon all policies subject to the assessment.

(c)   In computing the earned premiums for the purposes of this
section, the gross premium received by the insurer for the policy
shall be used as a base, deducting therefrom solely charges not recur-
ring upon the renewal or extension of the policy.

(d)   No subscriber shall have an offset against any assessment
for which he is liable, on account of any claim for unearned premium
or losses payable.

296.    Time Limit for Assessments.

Every subscriber of a domestic reciprocal insurer having contin-
gent liability shall be liable for, and shall pay his share of any assess-
ment, as computed and limited in accordance with this subtitle, if:

(a) While his policy is in force or within three years after its
termination, he is notified by either the attorney or the Commis-
sioner of his intentions to levy such assessment, or