PARRIS N. GLENDENING, Governor

Ch. 36

In subsection (c)(2) of this section, the former phrase "in his discretion" is
deleted as unnecessary in light of the word "may".

Defined terms: "Certificate of authority" § 1-101
"Commissioner" § 1-101
"Insurance" § 1-101
"Insurance business" § 1-101
"Insurer" § 1-101
"Mutual insurer" § 1-101
"Policy" § 1-101
"Stock insurer" § 1-101

3-110. CONTINGENT LIABILITY OF MEMBERS.

(A)     PROPORTIONATE LIABILITY FOR DISCHARGE OF LIABILITIES.

(1)      EXCEPT AS PROVIDED IN § 3-113 OF THIS SUBTITLE FOR
NONASSESSABLE POLICIES, EACH MEMBER OF A DOMESTIC MUTUAL INSURER
OTHER THAN A LIFE INSURER IS CONTINGENTLY LIABLE ON A PRO RATA BASIS FOR
THE DISCHARGE OF THE LIABILITIES OF THE DOMESTIC MUTUAL INSURER.

(2)      THE CONTINGENT LIABILITY PROVIDED FOR BY THIS SUBSECTION
SHALL BE EXPRESSLY STATED IN EACH POLICY.

(B)      EFFECT OF TERMINATION OF POLICY.

TERMINATION OF THE POLICY OF A MEMBER DOES NOT RELIEVE THE
MEMBER OF THE CONTINGENT LIABILITY FOR THE MEMBER'S PROPORTION, IF ANY,
OF THE OBLIGATIONS OF THE DOMESTIC MUTUAL INSURER THAT ACCRUED WHILE
THE POLICY WAS IN FORCE.

(C)     UNREALIZED CONTINGENT LIABILITY NOT AN ASSET.

THE UNREALIZED CONTINGENT LIABILITY OF A MEMBER IS NOT AN ASSET OF
THE DOMESTIC MUTUAL INSURER IN DETERMINING ITS FINANCIAL CONDITION.

REVISOR'S NOTE: This section formerly was CA § 6-509.

In subsections (a)(1), (b), and (c) of this section, the term "domestic mutual
insurer" is substituted for the former term "insurer" to clarify that this section
applies to domestic mutual insurers.

The only other changes are in style.

Defined terms: "Domestic insurer" § 1-101
"Life insurer" § 1-101
"Mutual insurer" § 1-101
"Policy" § 1-101

3-111. LEVY OF CONTINGENT LIABILITY.

(A) WHEN ASSESSMENT LEVIED.

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