Ch. 11

1996 LAWS OF MARYLAND

IN THIS SECTION, "NET DIRECT WRITTEN PREMIUMS" MEANS DIRECT GROSS
PREMIUMS WRITTEN ON ALL POLICIES OF MOTOR VEHICLE LIABILITY INSURANCE
AND PHYSICAL DAMAGE INSURANCE LESS RETURN PREMIUMS OR DIVIDENDS PAID
OR CREDITED TO POLICYHOLDERS WITH RESPECT TO THOSE POLICIES.

(B)     ASSESSMENT DUTIES OF BOARD OF DIRECTORS - IN GENERAL.

ON OR BEFORE JUNE 30 OF EACH YEAR IN WHICH THE BOARD OF DIRECTORS
RECEIVES THE CERTIFICATION OF AN ACTUAL COMMERCIAL AUTO OR PRIVATE
PASSENGER AUTO ASSESSMENT FOR A PRECEDING CALENDAR YEAR, THE BOARD
OF DIRECTORS SHALL PERFORM THE DUTIES SPECIFIED IN THIS SECTION.

(C)     SAME - DETERMINATION OF PREMIUMS.

THE BOARD OF DIRECTORS SHALL OBTAIN FROM THE COMMISSIONER THE
AGGREGATE NET DIRECT WRITTEN PREMIUMS OF ALL ASSOCIATION MEMBERS
DURING THE MOST RECENT CALENDAR YEAR DETERMINED BY THE COMMISSIONER
FOR COMMERCIAL AUTO AND PRIVATE PASSENGER AUTO DIVISIONS OF MOTOR
VEHICLE LIABILITY INSURANCE AND PHYSICAL DAMAGE INSURANCE.

(D)     SAME - CALCULATION OF ASSESSMENT ALLOCATION PERCENTAGES.

(1)      THE BOARD OF DIRECTORS SHALL CALCULATE ASSESSMENT
ALLOCATION PERCENTAGES FOR COMMERCIAL AUTO AND PRIVATE PASSENGER
AUTO DIVISIONS BY DIVIDING THE MOST RECENT CERTIFIED ASSESSMENT FOR
COMMERCIAL AUTO AND PRIVATE PASSENGER AUTO DIVISIONS BY THE TOTAL OF:

(I)      THE RESPECTIVE AGGREGATE NET DIRECT WRITTEN
PREMIUMS OBTAINED UNDER SUBSECTION (C) OF THIS SECTION; AND

(II)     THE RESPECTIVE TOTAL NET DIRECT WRITTEN PREMIUMS OF
THE FUND FOR THE SAME PERIOD.

(2)      THE ASSESSMENT ALLOCATION PERCENTAGE FOR THE PRIVATE
PASSENGER AUTO DIVISION MAY NOT EXCEED 3%.

(E)     SAME - NOTICE OF ASSESSMENT ALLOCATION PERCENTAGES.

THE BOARD OF DIRECTORS SHALL GIVE NOTICE OF THE ASSESSMENT
ALLOCATION PERCENTAGES DETERMINED UNDER THIS SECTION TO THE FUND, THE
COMMISSIONER, AND ALL ASSOCIATION MEMBERS.

(F)      SAME - ASSESSMENT AND COLLECTION.

THE BOARD OF DIRECTORS PROMPTLY SHALL ASSESS AND COLLECT FROM
EACH ASSOCIATION MEMBER FOR THE COMMERCIAL AUTO AND PRIVATE
PASSENGER AUTO DIVISIONS AN ASSESSMENT OBTAINED BY:

(1) MULTIPLYING THE ASSOCIATION MEMBER'S NET DIRECT WRITTEN
PREMIUMS IN EACH DIVISION FOR THE MOST RECENT CALENDAR YEAR
DETERMINED BY THE COMMISSIONER BY THE APPROPRIATE ASSESSMENT
ALLOCATION PERCENTAGE, CALCULATED UNDER SUBSECTION (D) OF THIS
SECTION; AND

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