WILLIAM DONALD SCHAEFER, Governor Ch. 503

(i) "Net direct written premiums" means direct gross
premiums written on all policies of motor vehicle liability and
physical damage insurance less return premiums and dividends paid
or credited to policyholders with respect to those policies.

(j) "Registration license year" for Class A and D vehicles
means the period beginning April 1, 1973, and ending March 31,
1974, and each subsequent twelve-month period, beginning April 1
and ending the following March 31. For all other classes of motor
vehicles, "registration license year" means the period beginning
May 1, 1973 and ending April 30, 1974 and each subsequent
twelve-month period, beginning May 1, and ending the following
April 30.

(k) "Payment of the appropriate premium" means actual
receipt by a producer of that sum required by the binding rules
of the Fund to be collected to effect coverage. Payment of all
or any part of the premium by an instrument which is later
dishonored is not payment of the appropriate premium so as to
effect coverage.

(l) "Producer" means any agent, INCLUDING ANY INDEPENDENT
AGENT, or broker qualified in this State WHO HAS APPLIED FOR AND
RECEIVED A PRODUCER AUTHORIZATION CODE FROM THE FUND.

(m) "Motor vehicle liability and physical damage insurance"
means those insurance coverages reported as private passenger
auto no-fault, other private passenger auto liability, commercial
auto no-fault, other commercial auto liability, private passenger
auto physical damage, and commercial auto physical damage on the
exhibit of premiums and losses page of the annual statement which
insurers are required to file with the Insurance Commissioner of
the State of Maryland.

(n) "Association" means the Industry Automobile Insurance
Association created under § 243M.

(o) "Cash basis accounting" means the records of accounts
of the Fund evidencing all cash receipts and all cash
disbursements of the Fund for a particular year.

(p) "Statutory basis accounting" means those accounting
practices prescribed or permitted by the Maryland Insurance
Commissioner, as reflected in the Fund's annual statement.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 19, 1989.

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