Ch. 365

LAWS OF MARYLAND

(ii) The adjustment each year of the surcharge
or rating factors to reflect any previous over or under
recoupment of assessment.

602.

(a) The Association shall issue policies of insurance only
if, after a hearing, the Commissioner finds that commercial
casualty insurance is unavailable for a particular subpool and
that:

(1) A substantial number of commercial entities

within any subpool are or within 6 months will be unable to

obtain commercial casualty insurance from an insurer authorized

to do business in this State or an approved surplus line
insurer;

(2)  The lack of commercial casualty insurance
severely hampers the operation of the commercial entities in this
subpool;

(3)  The lack of commercial casualty insurance will
cause a substantial number of commercial entities in the subpool
to cease operations in this State; and

(4)  The cessation of operation of a substantial
number of commercial entities in a subpool will be detrimental to
the general welfare of the citizens of this State.

(b) In any order issued under subsection (a) of this
section, the Commissioner may require the Association to activate
any of the following subpools:

(1) Day care centers regulated under Title 14 of the
Health - General Article;

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(2) To recoup loss and expense assessments, the
program of operation shall provide for:

(i) The calculation of the surcharge or rating
factors that are to be added to direct written premiums for all
casualty insurance, including premiums written by the
Association, except:

1.     Property and homeowner insurance;

2.     Medical malpractice insurance;

3.     Motor vehicle insurance; and

4.     Workers' compensation insurance; and