2918

LAWS OF MARYLAND

Ch. 610

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] RECOUPMENT
CHARGES shall not be considered premium income for purposes of
the State premium tax or the payment of commissions.

(2)  In the event that a policyholder fails   to pay the
assessment [surcharge] RECOUPMENT CHARGE when due, the  member may
cancel the policy in accordance with the policy terms for
nonpayment of premium.

(3)  (I) EACH MEMBER COMPANY SHALL ELECT ON OR BEFORE
JUNE 30 OF EACH YEAR WHETHER OR NOT TO RECOUP ITS SHARE OF THE
ASSESSMENT FOR THE IMMEDIATELY PRECEDING YEAR BY IMPOSING A
RECOUPMENT CHARGE ON EACH OF THE COMPANY'S POLICYHOLDERS.

(II)  IF ON OR BEFORE JUNE 30 A COMPANY DOES NOT
ELECT TO RECOUP ITS SHARE OF AN ASSESSMENT, IT SHALL BE DEEMED TO
HAVE RECOUPED THAT ASSESSMENT AND TO HAVE WAIVED ITS OPTION TO
IMPOSE A RECOUPMENT CHARGE ON ITS POLICYHOLDERS UNDER
SUBPARAGRAPH (III) OF THIS PARAGRAPH.

(III)  IF A COMPANY ELECTS TO RECOUP ITS SHARE
OF AN ASSESSMENT ON OR BEFORE JUNE 30, IT MUST CLEARLY IDENTIFY
ANY RECOUPMENT CHARGE IMPOSED ON ITS POLICYHOLDERS BY INCLUDING
THE FOLLOWING STATEMENT ON THE PREMIUM BILLING OF EACH

POLICYHOLDER: "RECOUPMENT OF MAIF ASSESSMENT, $________". NO

OTHER STATEMENT MAY ACCOMPANY THIS PREMIUM BILLING.

(IV)  NOTHING IN THIS PARAGRAPH SHALL DENY ANY
COMPANY THE RIGHT TO:

1.  ABSORB THE ANNUAL ASSESSMENT; OR

2.  RECOVER ALL OR PART OF THE ANNUAL
ASSESSMENT AS COSTS IN RATE FILINGS MADE UNDER THIS ARTICLE, IN
WHICH EVENT THE MAIF ASSESSMENT SHALL BE IDENTIFIED ON ANY
PREMIUM BILLING TO THE POLICYHOLDER.

481C.

(A)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, AN
INSURER OR AN AGENT SHALL COMPLY WITH § 17-108(A)(2) OF THE
TRANSPORTATION ARTICLE.

(B)  WILLFUL FAILURE TO COMPLY WITH § 17-108(A)(2) OF THE
TRANSPORTATION ARTICLE SHALL CONSTITUTE A VIOLATION OF THIS
SECTION.

Article - Transportation

17-106.

(e) (1) In addition to any other penalty provided for in
the Maryland Vehicle Law, if the required security for a vehicle