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Ch. 577
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1848
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LAWS OF MARYLAND
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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
(f). 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.]
(E) THE INSURANCE COMMISSIONER SHALL PROMPTLY REVIEW THE
ASSESSMENT ALLOCATION PERCENTAGE CALCULATED BY THE ASSOCIATION.
UNLESS THE COMMISSIONER FINDS THE COMPUTATION TO BE INACCURATE,
THE COMMISSIONER SHALL AUTHORIZE EACH MEMBER TO SURCHARGE EACH
POLICY OF MOTOR VEHICLE LIABILITY AND PHYSICAL DAMAGE INSURANCE
WRITTEN OR RENEWED IN THIS STATE, FOR A PERIOD OF ONE YEAR
COMMENCING THE NEXT ENSUING JULY 1, BY THE SAME PERCENTAGE AS THE
ASSESSMENT ALLOCATION PERCENTAGE. THIS SURCHARGE SHALL BE
COMPUTED BY APPLYING THE ASSESSMENT ALLOCATION PERCENTAGE TO THE
PREMIUM AT THE INCEPTION OR RENEWAL OF THE POLICY, AND SHALL NOT
BE SUBJECT TO CHANGE OR REFUND FOR ANY REASON. SURCHARGES SHALL
NOT BE CONSIDERED PREMIUM INCOME FOR PURPOSES OF THE STATE
PREMIUM TAX OR THE PAYMENT OF COMMISSIONS.
IN THE EVENT THAT A POLICYHOLDER FAILS TO PAY THE ASSESSMENT
SURCHARGE WHEN DUE, THE MEMBER MAY CANCEL THE POLICY IN
ACCORDANCE WITH THE POLICY TERMS FOR NONPAYMENT OF PREMIUM.
(F) EACH MEMBER OF THE ASSOCIATION SHALL APPLY AND COLLECT
THE ANY ASSESSMENT SURCHARGE PURSUANT TO SUBSECTIONS (D) AND (E).
EACH MEMBER OF THE ASSOCIATION SHALL REPORT QUARTERLY TO THE
ASSOCIATION PURSUANT TO §§ 243A AND 243M. AN OFFICER OF EACH
MEMBER SHALL CERTIFY, IN THE MANNER REQUIRED BY THE ASSOCIATION'S
BOARD OF DIRECTORS, THAT THE ANY AMOUNTS COLLECTED AND PAID ARE A
TRUE AND ACCURATE ACCOUNTING OF ITS POLICY SURCHARGES.
(C) ASSESSMENT MONEY RECEIVED BY THE FUND DURING THE
APPLICABLE CALENDAR YEAR SHALL BE CONSIDERED AS A DIRECT
CONTRIBUTION TO SURPLUS FOR ANNUAL STATEMENT PURPOSES. IN THE
EVENT THAT THE AGGREGATE AMOUNT OF SURCHARGES RECEIVED BY THE
ASSOCIATION MEMBER COMPANIES DURING THE APPLICABLE RECOUPMENT
YEAR EXCEEDS OR IS LESS THAN THE MEMBER'S ASSESSMENT CONTRIBUTION
FOR WHICH THE SURCHARGES WERE COLLECTED; THE NEXT YEAR'S
ASSESSMENT CONTRIBUTION SHALL BE INCREASED OR DECREASED
ACCORDINGLY.
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