|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ch. 714
|
|
|
|
|
2894
|
|
|
|
|
|
LAWS OF MARYLAND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
subtitle, which shall provide for economical, fair and
nondiscriminatory administration and which shall contain
other matters including, but not limited to, preliminary
assessment of all members for initial expenses necessary
to commence operations, establishment of necessary
facilities, expanded management of the association,
assessment of members to defray losses and expenses,
commission arrangements, reasonable and objective
underwriting standards, acceptance and cession of
reinsurance and procedures for determining amounts of
insurance to be provided. The program of operation shall
be subject to approval by the Commissioner after
consultation with affected individuals and organizations,
and shall take effect ten days after having been approved
by him. If the Commissioner disapproves all or any part
of the proposed program of operation, the governing
committee shall within 30 days submit for review an
appropriately revised plan of operation or part thereof,
and, if the governing committee fails to do so, the
Commissioner shall promulgate a program of operation.
(b) (1) The association may, on its own
initiative, with the approval of the Commissioner, amend
the program of operation; however, amendments to the
program of operation must be voted on and approved by the
members of the association. Votes shall be cast and
counted on a weighted basis in accordance with the
premiums written of each member. An amendment to the
program of operation shall not become effective until
approved by at least a majority of the votes cast on such
weighted basis.
(2) THE COMMISSIONER MAY AMEND THE PROGRAM
OF OPERATION, AFTER NOTICE AND AN OPPORTUNITY TO BE HEARD
TO THE ASSOCIATION, PURSUANT TO THE PROVISIONS OF THIS
ARTICLE.
(C) THE PROGRAM OF OPERATION FOR EACH SUBPOOL
SHALL CONTAIN PROVISION FOR A RATE STABILIZATION RESERVE
FUND. EACH POLICYHOLDER OF EACH SUBPOOL SHALL PAY A
STABILIZATION RESERVE FUND CHARGE TO THE SAME ACCOUNT
INTO WHICH HIS PREMIUM IS CREDITED. THIS CHARGE SHALL BE
SEPARATELY STATED IN THE POLICY. THE POLICY OF ANY
POLICYHOLDER WHO FAILS TO PAY THE STABILIZATION RESERVE
FUND CHARGE SHALL BE CANCELLED. THE STABILIZATION
RESERVE FUND CHARGE SHALL CONTINUE UNTIL SUCH TIME AS THE
NET BALANCE OF THE STABILIZATION RESERVE FUND FOR EACH
SUBPOOL IS NOT LESS THAN THE PROJECTED SUM OF PREMIUMS TO
BE WRITTEN IN THE YEAR FOLLOWING THE VALUATION DATE. THE
FUND SHALL BE CREDITED WITH ALL THE RESERVE FUND CHARGES
COLLECTED FROM POLICYHOLDERS, AND IN ANY YEAR THE SUBPOOL
SUSTAINS AN OPERATING LOSS BE CHARGED WITH THE LOSS.
(D) THE PROGRAM OF OPERATION OF EACH SUBPOOL SHALL
CONTAIN A PROVISION AUTHORIZING THE DIRECT RECOUPMENT BY
MEMBERS OF THE JOINT INSURANCE ASSOCIATION FROM THE
POLICYHOLDERS OF THE SUBPOOL OF ANY ASSESSMENT REQUIRED
TO BE MADE BY THE MEMBERS INTO OR ON BEHALF OF THE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
