H.B. 30

VETOES

(3)     Notify all members, the Maryland Automobile Insurance Fund, and the
Maryland Insurance Commissioner of the assessment allocation percentages so
determined under this subsection.

(4)     Assess and collect from each member of the Association an amount
equal to each member's net direct written premium in each category for the most recent
calendar year determined by the Insurance Commissioner multiplied by the appropriate
assessment allocation percentage as determined in paragraph (2) of this subsection and as
adjusted for any recoupment surplus or shortfall experienced by any member for the
previous applicable surcharge year.

(5)     Deposit the assessment payment as required by § 243A(b) of this article.

(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 the event that the aggregate amount of surcharges received by any
Association member company during the applicable recoupment year is less than that
member's assessment contribution for which the surcharges were collected, the member's
authorized surcharge under subsection (e) of this section shall be increased accordingly
for the next appropriate recoupment year. In the event that the aggregate amount of
surcharges received by any Association member company during the applicable
recoupment year is greater than that member's assessment contribution for which the
surcharges were collected, the member shall deposit the excess as provided in § 243N(b)
and shall receive a credit for the amount deposited against the next appropriate
assessment under § 243A and this section. The annual assessment allocation percentage
may be adjusted by the Industry Automobile Insurance Association on behalf of any
member company in order to reflect any recoupment surplus or shortfall for the prior
applicable recoupment year.

(i) The Fund shall, for the year beginning July 1, 1984, and for every subsequent
year thereafter, surcharge all its policyholders, as though it were a member of the
Industry Automobile Insurance Association, in conformity with the procedures and
requirements established in subsections (d) through (h) above, except that there shall be
no payment of any moneys by the Fund to the Association's insufficiency assessment
reserve funds. The surcharges assessed and received by the Fund shall be separately
accounted for by the Fund;

243N.

(a)     In this section, the term ["insufficiency assessment"] "ASSESSMENT" means
all funds collected by the Industry Automobile Insurance Association under § 243M of
this article, and any gross surplus recoupment.

(b)     Each member of the Industry Automobile Insurance Association shall deposit
with the Association, on or before September 1, 1978, any gross surplus recoupment
collected from policyholders on account of the [insufficiency] assessment made for the
calendar year 1977, and shall deposit with the Association any gross surplus recoupment
received by such member on account of any future [insufficiency] assessment not later
than October 15 following the recoupment year in which the gross surplus recoupment
was received.

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