PARRIS N. GLENDENING, Governor

Ch. 11

IMMEDIATELY PRECEDING CALENDAR YEAR FROM AN AMOUNT EQUAL TO 25% OF
THE AVERAGE OF NET DIRECT WRITTEN PREMIUMS OF THE FUND FOR EACH OF
THE THREE IMMEDIATELY PRECEDING CALENDAR YEARS.

(C)     AMOUNT OF ASSESSMENT.

THE ASSESSMENT CERTIFIED TO THE BOARD OF DIRECTORS SHALL BE EQUAL
TO:

(1)      SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE ASSESSMENT
LIMIT, IF THE ASSESSMENT LIMIT IS LESS THAN OR EQUAL TO THE STATUTORY
OPERATING LOSS; OR

(2)      THE STATUTORY OPERATING LOSS, IF THE ASSESSMENT LIMIT IS
GREATER THAN THE STATUTORY OPERATING LOSS.

(D)     ZERO ASSESSMENT LIMIT.

IF THE CALCULATION UNDER SUBSECTION (B)(2) OF THIS SECTION YIELDS A
NUMBER THAT IS LESS THAN OR EQUAL TO ZERO, THE ASSESSMENT LIMIT IS ZERO.

(E)     EXCLUSIONS FROM OPERATING LOSS OR ASSESSMENT.

THE STATUTORY OPERATING LOSS OR ASSESSMENT CERTIFIED TO THE BOARD
OF DIRECTORS MAY NOT INCLUDE:

(1)      ASSESSMENT MONEYS RECEIVED FOR A PRIOR YEAR; OR

(2)      MONEYS TRANSFERRED BETWEEN THE COMMERCIAL AUTO AND
PRIVATE PASSENGER AUTO DIVISIONS WITHIN THE FUND.

(F)      OTHER INCOME OR EXPENSES.

IN A CALCULATION MADE UNDER THIS SECTION, INCOME OR EXPENSES NOT
CLEARLY ATTRIBUTABLE TO EITHER COMMERCIAL AUTO OR PRIVATE PASSENGER
AUTO MAY BE ALLOCATED PRO RATA FOR THAT YEAR.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 243A(b).

In the introductory language of subsection (b) and in subsections (e)(2) and
(f) of this section, the references to commercial "auto" and private passenger
"auto" are substituted for the former references to commercial "automobile"
and private passenger "automobile" to conform to the terminology used
elsewhere in this title. See, e.g., § 20-101(h) and (i) of this title.

Defined terms: "Board of Directors" § 20-101
"Board of Trustees" § 20-101
"Fund" § 20-101
"Premium" § 1-101

20-405. ASSESSMENT OF ASSOCIATION MEMBERS.

(A) "NET DIRECT WRITTEN PREMIUMS" DEFINED.

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