744                                      LAWS OF MARYLAND                               Ch. 241

INACCURATE, HE SHALL AUTHORIZE EACH MEMBER TO INCREASE

ITS PREMIUMS ON POLICIES OF MOTOR VEHICLE LIABILITY AND

PHYSICAL DAMAGE INSURANCE__WRITTEN IN THIS STATE, FOR A

PERIOD OF ONE YEAR__COMMENCING ON AND AFTER THE NEXT

ENSUING JANUARY 1, BY THE SAME PERCENTAGE AS ITS NET

ASSESSMENT BEARS TO ITS NET DIRECT WRITTEN PREMIUMS FOR

THE PRECEDING CALENDAR YEAR. THE INCREASE SHALL BE
SPREAD EQUITABLY AMONG ALL SUCH POLICIES.

(F) EACH MEMBER SHALL KEEP SEPARATE AND DETAILED
RECORDS OF THE NET DIRECT WRITTEN PREMIUMS RECEIVED BY IT
THAT ARE ATTRIBUTABLE TO AN INCREASE AUTHORIZED UNDER

SUBSECTION (E), AND SHALL REPORT THAT AMOUNT TO THE

INSURANCE COMMISSIONER AND THE ASSOCIATION ON A QUARTERLY
BASIS, AS DIRECTED BY THE COMMISSIONER, WITH AN AGGREGATE
FIGURE FOR THE FOUR QUARTERS ENDING ON SEPTEMBER 30.
THIS AGGREGATE FIGURE SHALL BE THE AMOUNT OF RECOUPMENT
USED IN DETERMINING WHETHER THE MEMBER HAS RECOUPED THE
ASSESSMENT PAID BY IT ON THE PRECEDING DECEMBER 31;

HOWEVER, THE AGGREGATE FIGURE FOR THE FOUR QUARTERS

ENDING SEPTEMBER 30, 1977, SHALL BE DETERMINED BY
MULTIPLYING THE SUM OF THE FIGURES REPORTED FOR THE

QUARTERS ENDING APRIL 30,__1977, JUNE 30, 1977, AND

SEPTEMBER 30. 1977, BY 1 33-1/3 PERCENT. IF THE
ASSESSMENT PAID ON THE PRECEDING DECEMBER 31 EXCEEDS THE
RECOUPMENT, THE DIFFERENCE IS THE NET UNREALIZED
RECOUPMENT. IF THE RECOUPMENT EXCEEDS THAT ASSESSMENT,
THE DIFFERENCE IS THE GROSS SURPLUS RECOUPMENT. THE
AMOUNT OF THE RECOUPMENT SHALL NOT BE CONSIDERED PREMIUM
INCOME SUBJECT TO THE STATE PREMIUM TAX.

(G) EACH MEMBER SHALL KEEP SEPARATE AND DETAILED
RECORDS OF ANY EXPENSES ACTUALLY INCURRED THAT ARE
DIRECTLY ATTRIBUTABLE TO THE COLLECTION OF THE RECOUPMENT
AUTHORIZED UNDER SUBSECTION (E). UPON VERIFICATION, AND
IF RELEVANT, THESE EXPENSES SHALL BE CONSIDERED AS
APPROPRIATE COST ITEMS BY THE INSURANCE COMMISSIONER IN
ANY SUBSEQUENT RATE FILING BY THE MEMBER.

SECTION [[2]] 3. AND BE IT FURTHER ENACTED, That
[[Sections 243B(f) and 243F(b)]] Section 243B(f) of
Article 48A — Insurance Code, of the Annotated Code of
Maryland (1972 Replacement Volume and 1975 Supplement) be
and [[they are]] it is hereby repealed and reenacted,
with amendments, to read as follows::

Article 48A — Insurance Code

243B.

[[[]](f) Any private insurer desiring to assume
insurance coverage of any policyholder insured by the
Fund may do so, provided notice of the proposal is given
to the Fund at least 60 days prior to the termination of
the policy, with the approval of the insured, upon
receipt of such notice, the Fund shall notify the insured
that he will no longer be eligible for insurance from the
Fund. [The names and records of all policyholders