PARRIS N. GLENDENING, Governor

Ch. 11

(2)     FOR THE PURPOSE OF THIS SUBSECTION, ASSETS INCLUDE ASSETS
ACCRUING FROM NET REALIZED GAINS AND INCOME FROM INVESTMENTS.

(3)     IF REFUNDS ARE IMPRACTICABLE, THE BOARD MAY RETAIN A
REASONABLE AMOUNT IN AN ACCOUNT FOR THE CONTINUING EXPENSES OF THE
CORPORATION AND FOR FUTURE LOSSES.

(H) PREMIUM RATES AND POLICYOWNER DIVIDENDS.

IN DETERMINING PREMIUM RATES AND POLICYOWNER DIVIDENDS FOR ANY
KIND OF INSURANCE WITHIN THE SCOPE OF THIS SUBTITLE, A MEMBER INSURER
MAY CONSIDER THE AMOUNT REASONABLY NECESSARY TO MEET ITS ASSESSMENT
OBLIGATIONS UNDER THIS SUBTITLE.

(I) CERTIFICATE OF CONTRIBUTION.

(1)     THE CORPORATION SHALL ISSUE TO EACH MEMBER INSURER THAT
PAYS AN ASSESSMENT UNDER THIS SUBTITLE A CERTIFICATE OF CONTRIBUTION
FOR THE AMOUNT OF THE ASSESSMENT.

(2)     THE CERTIFICATE OF CONTRIBUTION SHALL BE IN THE FORM THAT
THE COMMISSIONER REQUIRES.

(3)     ALL OUTSTANDING CERTIFICATES OF CONTRIBUTION ARE OF
EQUAL DIGNITY AND PRIORITY WITHOUT REFERENCE TO AMOUNTS OR DATES OF
ISSUE.

(4)     THE MEMBER INSURER MAY SHOW A CERTIFICATE OF
CONTRIBUTION IN THE MEMBER INSURER'S FINANCIAL STATEMENT AS AN ASSET IN
THE FORM AND FOR THE AMOUNT, IF ANY, AND THE PERIOD OF TIME THAT THE
COMMISSIONER APPROVES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 528 and item (2) of the second sentence of §
521.

In subsection (a) of this section, the former reference to assessment "to
provide funds to carry out the purpose of this subtitle" is deleted as
unnecessary in light of subsection (b)(1) of this section.

In subsection (c)(2) and (3) of this section, the former phrases "to the extent
necessary" are deleted as unnecessary in light of subsection (b)(1) of this
section, which authorizes the Board of Directors to assess the member
insurers to provide the funds necessary to carry out the powers and duties of
the Corporation, and subsection (c) of this section, which limits how
assessments can be used.

In subsections (d)(1)(ii), (2), (3), and (4)(i) and (ii) and (f)(2) and (3) of this
section, the references to the "Board" are added to clarify that the Board of
Directors determines the amount of and makes assessments. Similarly, in
subsection (g)(3) of this section, the reference to the "Board" is added to

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