PARRIS N. GLENDENING, Governor

Ch. 36

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

3-112. ENFORCEMENT OF CONTINGENT LIABILITY.

(A)     ASSESSMENT PRIMA FACIE CORRECT.

THE DETERMINATION BY THE DOMESTIC MUTUAL INSURER OF THE TOTAL
ASSESSMENT UNDER § 3-111 OF THIS SUBTITLE AND THE AMOUNT OF EACH
MEMBER'S ASSESSMENT IS CONSIDERED PRIMA FACIE CORRECT.

(B)     NOTICE TO MEMBERS.

(1)      THE DOMESTIC MUTUAL INSURER SHALL MAIL TO EACH MEMBER,
AT THE MEMBER'S LAST ADDRESS OF RECORD WITH THE DOMESTIC MUTUAL
INSURER, NOTICE OF:

(I)      THE AMOUNT OF THE ASSESSMENT TO BE PAID; AND

(II)     THE PERIOD WITHIN WHICH THE ASSESSMENT MUST BE PAID.

(2)      THE PERIOD WITHIN WHICH THE ASSESSMENT MUST BE PAID MAY
NOT BE LESS THAN 20 DAYS AFTER NOTICE.

(C)     FAILURE TO PAY ASSESSMENTS.

(1)      IF A MEMBER FAILS TO PAY THE ASSESSMENT WITHIN THE PERIOD
SPECIFIED IN THE NOTICE, THE DOMESTIC MUTUAL INSURER MAY BRING SUIT TO
COLLECT THE ASSESSMENT.

(2)      FAILURE OF THE MEMBER TO RECEIVE THE NOTICE MAILED IN
ACCORDANCE WITH SUBSECTION (B) OF THIS SECTION IS NOT A DEFENSE IN AN
ACTION TO COLLECT THE ASSESSMENT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former CA § 6-511.

In subsection (a) of this section, the reference to a "domestic mutual" insurer
is substituted for the former reference to "an insurer" for clarity since the
section referred to in the former cross-reference was limited to domestic
mutual insurers. Similarly, in subsections (b)(1) and (c)(1) of this section, the
term "domestic mutual insurer" is substituted for the former term "insurer"
for clarity.

Subsection (b)(2) of this section is revised to state that the period for paying
the assessment may not be less than 20 days after notice.

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

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