MARVIN MANDEL, Governor

2245

BY adding to

Article 48A — Insurance Code

Section [[553(e)]] 553(d)

Annotated Code of Maryland

(1972 Replacement Volume and 1975 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 550 (c) and 555 of Article 48A -
Insurance Code, of the Annotated Code of Maryland (1972
Replacement Volume and 1975 Supplement) be and they are
hereby repealed and reenacted, with amendments, to read
as follows:

Article 48A — Insurance Code

550.

(c) The Society is a member of the joint insurance
association AND THE MARYLAND INSURANCE GUARANTY
ASSOCIATION.

555.

In applying the provisions of § 242 of the Insurance
Code (Article 48A) dealing with rates and rate filings,
the Commissioner shall permit an [initial] [[ANNUAL]]
INITIAL premium not in excess of 130% of the rate that
would otherwise be applicable if the terms of the rate
filing are such that any portion of the collected
premiums that are ultimately determined as having been in
excess of the Society's costs shall be returned on a
nondiscriminatory basis to the policyholders of the
Society.

SECTION 2. AND BE IT FURTHER ENACTED, That Section
553(d) of Article 48A-Insurance Code, of the Annotated

Code of Maryland (1972 Replacement Volume and 1975

Supplement) be and it is hereby repealed.

553..

[(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 5% of one year's annual
premium may be extinguished.]

SECTION [[2.]] 3. AND BE IT FURTHER ENACTED, That
new Section [[553(e)]] 553 (d) be and it is hereby added
to Article 48A — Insurance Code, of the Annotated Code of
Maryland (1972 Replacement Volume and 1975 Supplement) to
read as follows: