Ch. 11

1996 LAWS OF MARYLAND

(4) (I) THE BOARD MAY NOT MAKE ASSESSMENTS FOR FUNDS TO
MEET THE REQUIREMENTS OF THE CORPORATION WITH RESPECT TO AN IMPAIRED
INSURER OR INSOLVENT INSURER UNTIL NECESSARY TO CARRY OUT THE
PURPOSES OF THIS SUBTITLE.

(II) BECAUSE EXACT DETERMINATIONS MAY NOT ALWAYS BE
POSSIBLE, THE BOARD SHALL MAKE CLASSIFICATIONS OF ASSESSMENTS UNDER
SUBSECTION (A) OF THIS SECTION AND COMPUTATION OF ASSESSMENTS UNDER
THIS SUBSECTION WITH A REASONABLE DEGREE OF ACCURACY.

(E)     ABATEMENT OR DEFERRAL.

(1)      IF, IN THE OPINION OF THE BOARD, PAYMENT OF AN ASSESSMENT
WOULD ENDANGER THE ABILITY OF A MEMBER INSURER TO MEET ITS
CONTRACTUAL OBLIGATIONS, THE CORPORATION MAY ABATE OR DEFER, WHOLLY
OR PARTLY, THE ASSESSMENT OF THE MEMBER INSURER.

(2)      IF AN ASSESSMENT AGAINST A MEMBER INSURER IS WHOLLY OR
PARTLY ABATED OR DEFERRED, THE AMOUNT BY WHICH THE ASSESSMENT IS
ABATED OR DEFERRED SHALL BE ASSESSED AGAINST. THE OTHER MEMBER
INSURERS IN A MANNER CONSISTENT WITH THE BASIS FOR ASSESSMENTS SET
FORTH IN THIS SECTION.

(F)      MAXIMUM ASSESSMENTS.                                         

(1)      IN A CALENDAR YEAR, THE TOTAL OF ALL ASSESSMENTS AGAINST A
MEMBER INSURER FOR EACH ACCOUNT MAY NOT EXCEED 2% OF THE MEMBER
INSURER'S PREMIUMS IN THE STATE ON POLICIES COVERED BY THE ACCOUNT.

(2)      IF AN ASSESSMENT AGAINST A MEMBER INSURER IS REDUCED
BECAUSE OF PARAGRAPH (1) OF THIS SUBSECTION, THE BOARD SHALL ASSESS THE
AMOUNT OF THE REDUCTION AGAINST THE OTHER MEMBER INSURERS IN A
MANNER CONSISTENT WITH THE BASIS FOR ASSESSMENTS SET FORTH IN THIS
SECTION.

(3)      IF THE MAXIMUM ASSESSMENTS IN A CALENDAR YEAR AGAINST
ALL INSURERS PLUS THE OTHER ASSETS OF THE CORPORATION IN ANY ACCOUNT
ARE INSUFFICIENT TO PROVIDE IN THE ACCOUNT THE AMOUNT NECESSARY TO
CARRY OUT THE RESPONSIBILITIES OF THE CORPORATION, THE BOARD SHALL
MAKE ADDITIONAL ASSESSMENTS AS NECESSARY AGAINST. MEMBER INSURERS AS
SOON AS ALLOWED BY THIS SUBTITLE.

(G)     REFUNDS.

(1) IF APPROVED BY THE COMMISSIONER, THE BOARD MAY REFUND TO
MEMBER INSURERS, BY AN EQUITABLE METHOD SET BY THE PLAN OF OPERATION,
IN PROPORTION TO THE CONTRIBUTION OF EACH MEMBER INSURER TO THAT
ACCOUNT, THE AMOUNT BY WHICH THE ASSETS OF THE ACCOUNT EXCEED THE
AMOUNT THAT THE BOARD FINDS NECESSARY TO CARRY OUT THE OBLIGATIONS
OF THE CORPORATION DURING THE COMING YEAR.

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