MARVIN MANDEL, Governor                              2609

OF INSURANCE OR HIS DEPUTY,

(B)     EACH POLICYHOLDER MEMBER OF THE SOCIETY SHALL
PAY TO THE SOCIETY A STABILIZATION RESERVE FUND CHARGE.
THE DIRECTORS OF THE SOCIETY SHALL DETERMINE THE AMOUNT
OF THE STABILIZATION RESERVE FOND CHARGE. THIS CHARGE
SHALL BE SEPARATELY STATED IN THE POLICY. THE SOCIETY
SHALL CANCEL THE POLICY OF ANY POLICYHOLDER WHO FAILS TO
PAY THE STABILIZATION RESERVE FUND CHARGE.

(C)     COLLECTION OF THE STABILIZATION RESERVE FUND
CHARGE SHALL CONTINUE UNTIL SUCH TIME AS THE NET BALANCE
OF THE STABILIZATION RESERVE FUND IS NOT LESS THAN THE
PROJECTED SOB OF PREMIUMS TO BE WRITTEN IN THE YEAR
FOLLOWING THE VALUATION DATE. THE FOND SHALL BE CREDITED
WITH ALL RESERVE FUND CHARGES COLLECTED FROM
POLICYHOLDERS AND, IN ANY YEAR THE SOCIETY SUSTAINS AN
OPERATING LOSS, BE CHARGED WITH THE LOSS.

(D)     EACH POLICYHOLDER MEMBER SHALL BE LIABLE FOR
ONE ASSESSMENT, WHICH SHALL BE THAT PORTION OF ONE ANNUAL
PREMIUM DETERMINED BY MULTIPLYING ONE ANNUAL PREMIUM BY
THE PERCENTAGE OF FUNDS CONTAINED IN THE STABILIZATION
RESERVE FUND COMPARED TO FIVE MILLION DOLLARS. UPON THE
COMMISSIONER'S APPROVAL, THE ASSESSABLE LIABILITY OF THE
MEMBER POLICYHOLDERS IN EXCESS OF 518 OF ONE YEAR'S ANNUAL
PREMIUM MAY BE EXTINGUISHED.

553. TERMS OF COVERAGE; CLASSIFICATIONS

(A) THE TERMS AND CONDITIONS OF ALL POLICIES
ISSUED BY THE SOCIETY TO PHYSICIANS SHALL BE ESSENTIALLY
UNIFORM IN TERMS AND COVERAGE.

(B) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION
(A), THE SOCIETY MAY PRESCRIBE REASONABLE CLASSIFICATIONS
OF PHYSICIANS AND INSURED ACTIVITIES AND EXPOSURES BASED
ON GOOD FAITH DETERMINATION OF RELATIVE EXPOSURES AND
HAZARDS AMONG CLASSIFICATIONS AND MAY VARY THE LIMITS,
COVERAGES, EXCLUSIONS, CONDITIONS, AND LOSS SHARING
PROVISIONS AMONG CLASSIFICATIONS. ADDITIONALLY, THE
SOCIETY MAY PRESCRIBE, IN THE CASE OF AN INDIVIDUAL
PHYSICIAN WITHIN A CLASS, REASONABLE VARIATIONS IN THE
TERMS OF COVERAGE INCLUDING, BUT NOT LIMITED TO,
DEDUCTIBLES AND LOSS SHARING PROVISIONS, BASED UPON THE
INSURED'S PRIOR LOSS EXPERIENCE AND CURRENT PROFESSIONAL
TRAINING AND CAPABILITY.

[[554. EXEMPTION FROM TAXATION

THE PROPERTY, INCOME, AND ACTIVITIES OF THE MEDICAL
MUTUAL LIABILITY INSURANCE SOCIETY OF MARYLAND ARE EXEMPT
PROM ALL STATE AND LOCAL TAXES WITH THE EXCEPTION OF THE
PREMIUM TAX PROVIDED BY SECTION 136 OF ARTICLE 81.]]