Ch. 11

1996 LAWS OF MARYLAND

(2)      THE CORPORATION SHALL ASSESS EACH MEMBER INSURER IN THE
PROPORTION THAT THE NET DIRECT WRITTEN PREMIUMS OF THE MEMBER
INSURER FOR THE PRECEDING CALENDAR YEAR ON THE KINDS OF INSURANCE
COVERED BY THE ACCOUNT BEARS TO THE NET DIRECT WRITTEN PREMIUMS OF
ALL MEMBER INSURERS FOR THE PRECEDING CALENDAR YEAR ON THE KINDS OF
INSURANCE COVERED BY THE ACCOUNT.

(3)      THE CORPORATION SHALL GIVE EACH MEMBER INSURER AT LEAST
30 DAYS' NOTICE OF AN ASSESSMENT BEFORE IT IS DUE.

(4)      THE CORPORATION MAY NOT ASSESS A MEMBER INSURER IN ANY
YEAR ON AN ACCOUNT IN AN AMOUNT GREATER THAN 2% OF THAT MEMBER
INSURER'S NET DIRECT WRITTEN PREMIUMS FOR THE PRECEDING CALENDAR YEAR
ON THE KINDS OF INSURANCE COVERED BY THE ACCOUNT.

(5)      IN ANY 1 YEAR, IF THE SUM OF THE MAXIMUM ASSESSMENT FOR AN
ACCOUNT AND THE OTHER ASSETS OF THE CORPORATION IN THE ACCOUNT DOES
NOT PROVIDE AN AMOUNT SUFFICIENT TO MAKE ALL NECESSARY PAYMENTS FROM
THAT ACCOUNT, THE FUNDS AVAILABLE SHALL BE PRORATED AND THE UNPAID
PART SHALL BE PAID AS SOON AS FUNDS ARE AVAILABLE.

(6)      THE CORPORATION MAY EXEMPT OR DEFER, WHOLLY OR PARTLY,
THE ASSESSMENT OF A MEMBER INSURER IF THE ASSESSMENT WOULD CAUSE THE
MEMBER INSURER'S FINANCIAL STATEMENT TO REFLECT AMOUNTS OF CAPITAL OR
SURPLUS LESS THAN THE MINIMUM AMOUNTS REQUIRED FOR A CERTIFICATE OF
AUTHORITY BY ANY JURISDICTION IN WHICH THE MEMBER INSURER IS
AUTHORIZED TO TRANSACT INSURANCE BUSINESS.

(7)      A MEMBER INSURER MAY SET OFF AGAINST AN ASSESSMENT THE
AUTHORIZED PAYMENTS MADE ON COVERED CLAIMS AND EXPENSES INCURRED IN
PAYING THOSE COVERED CLAIMS IF THEY ARE CHARGEABLE TO THE ACCOUNT
FOR WHICH THE ASSESSMENT IS MADE.                                                           

(E) OTHER DUTIES OF CORPORATION.                                                             

(1) THE CORPORATION:

(I)       SHALL INVESTIGATE CLAIMS BROUGHT AGAINST THE
CORPORATION AND ADJUST, COMPROMISE, SETTLE, AND PAY COVERED CLAIMS TO
THE EXTENT OF THE CORPORATION'S OBLIGATION AND DENY ALL OTHER CLAIMS;

(II)     MAY REVIEW SETTLEMENTS, RELEASES, AND JUDGMENTS TO
WHICH THE INSOLVENT INSURER OR ITS INSUREDS WERE PARTIES TO DETERMINE
THE EXTENT TO WHICH THE SETTLEMENTS, RELEASES, AND JUDGMENTS MAY BE
PROPERLY CONTESTED;

(III)    SHALL NOTIFY PERSONS AS THE COMMISSIONER DIRECTS
UNDER § 9-308(B)(1) OF THIS SUBTITLE;

(IV)    SHALL HANDLE CLAIMS THROUGH ITS EMPLOYEES OR
THROUGH ONE OR MORE INSURERS OR OTHER PERSONS DESIGNATED AS
SERVICING FACILITIES;

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