1636

LAWS OF MARYLAND

Ch. 443

policy, and shall not be subject to change or refund for any
reason. 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 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 shares of the
[assessment] ASSESSMENTS for the immediately preceding year by
imposing a recoupment charge on each of the company's COMMERCIAL
policyholders OR PRIVATE PASSENGER AUTOMOBILE POLICYHOLDERS, OR
BOTH, WHERE APPROPRIATE.

(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)
company the right to:

Nothing in this paragraph shall deny any

1. Absorb [the] AN annual assessment; or

2. Recover all or part of the annual
[assessment] ASSESSMENTS 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.

(f) Each member of the association shall apply and collect
any assessment surcharge pursuant to subsections (d) and (e).

POLICYHOLDERS SHALL RECEIVE ANY SURPLUS RECOUPMENT CREDITS AND
MAY BE CHARGED FOR ANY RECOUPMENT SHORTFALL THAT THEIR RESPECTIVE
MEMBER COMPANY RECEIVES FROM OR IS SURCHARGED BY THE INDUSTRY

AUTOMOBILE INSURANCE ASSOCIATION. Each member of the association
shall report quarterly to the association pursuant to § 243A and
this section. An officer of each member shall certify, in the
manner required by the association's board of directors, that any
amounts collected and paid are a true and accurate accounting of
its policy surcharges.

(g) All insufficiency assessment moneys received by the
Fund during the applicable calendar year shall be considered as a
direct contribution to surplus for annual statement purposes. In