1038

LAWS OF MARYLAND

Ch. 281

the policy. The Society shall cancel the policy of any
policyholder who fails to pay the stabilization reserve fund
charge.

(c)  Collection of the stabilization reserve fund charge
shall continue until such time as the net balance of the
stabilization reserve fund 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 reserve fund charges
collected from policyholders and, in any year the Society
sustains an operating loss, be charged with the loss.

(d)  Each policyholder member shall be subject to assessment
as provided in §§ 6-509, 6-510, and 6-511 of the Corporations and
Associations Article, except that:

(1)  The amount of all assessments may not exceed a
full year's premium calculated as of the policy anniversary next
preceding the time of assessment.

(2)  The amount specified in paragraph (1) shall be
further reduced in the proportion that the percentage of the net
balance of the stabilization reserve fund at the time of
assessment bears to $5,000,000.

(3)  Upon the Commissioner's approval, the assessable
liability of the member policyholders not in excess of 5 percent
of one year's annual premium may be extinguished.

(E) WHEN THE SOCIETY MEETS ALL APPLICABLE REQUIREMENTS OF
THIS ARTICLE CONCERNING THE SALE OF NONASSESSABLE POLICIES
INCLUDING, BUT NOT LIMITED TO, §§ 48, 49, AND 50 OF THIS ARTICLE,
THE SOCIETY THEN MAY ISSUE NONASSESSABLE POLICIES SUBJECT TO THE
PROVISIONS OF:

(1)  §§ 262 AND 263;

(2)  ALL OTHER APPLICABLE PROVISIONS OF THIS ARTICLE;
AND

(3)  THE CORPORATIONS AND ASSOCIATIONS ARTICLE.
572.

(a)  The terms and conditions of all policies issued by the
Society to attorneys shall be essentially uniform in terms and
coverage.

(b)  Notwithstanding the provisions of subsection (a), the
Society may prescribe reasonable classifications of attorneys and
insured activities and exposures based on good faith
determination of relative exposures and hazards among
classifications and may vary the limits, coverages, exclusions,
conditions, and loss sharing provisions among classifications.
Additionally, the Society may prescribe, in the case of an