Ch. 11

1996 LAWS OF MARYLAND

THE ASSOCIATION MAY ADJUST THE ANNUAL ASSESSMENT ALLOCATION
PERCENTAGE FOR AN ASSOCIATION MEMBER TO REFLECT ANY SURCHARGE
EXCESS OR SHORTFALL FOR THE PREVIOUS APPLICABLE SURCHARGE YEAR.

REVISOR'S NOTE: This section is new language derived without substantive
change from the second through fourth sentences of former Art. 48A, §
243M(g).

In subsections (a) and (b) of this section, the references to an Association
member's assessment "payment" are substituted for the former references to
the "assessment contribution for which the surcharges were collected" to
conform to the terminology used in § 20-405(h) of this subtitle.

Defined terms: "Association" § 20-101
"Association member" § 20-101

20-410. INSUFFICIENCY ASSESSMENT RESERVE FUND.

(A)     ESTABLISHED.

THERE IS AN INSUFFICIENCY ASSESSMENT RESERVE FUND.

(B)     COMPOSITION.

THE INSUFFICIENCY ASSESSMENT RESERVE FUND SHALL BE MAINTAINED BY
THE ASSOCIATION AND SHALL CONSIST OF:

(1)     PAYMENTS OF ASSESSMENT SURCHARGES COLLECTED BY THE
ASSOCIATION TO COVER ANY ACTUAL OPERATING LOSS THAT THE FUND SUSTAINS;

(2)     ANY GROSS EXCESS SURCHARGES RECEIVED BY AN ASSOCIATION
MEMBER ON ACCOUNT OF AN ASSESSMENT MADE UNDER THIS SUBTITLE; AND

(3)     THE FULL AMOUNT OF THE INCOME FROM ASSESSMENT PAYMENTS
AND GROSS EXCESS SURCHARGES IN INVESTMENTS.

(C)     MONEY HELD IN TRUST.

(1)      EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS. SUBSECTION, THE
ASSOCIATION SHALL HOLD MONEY OF THE INSUFFICIENCY ASSESSMENT RESERVE
FUND IN TRUST IN A SEPARATE INTEREST-BEARING ACCOUNT IN A FINANCIAL
INSTITUTION IN THE STATE FOR THE USE OF THE FUND.

(2)     THE ASSOCIATION MAY AUTHORIZE THE FINANCIAL INSTITUTION
WHERE THE MONEY IS DEPOSITED TO INVEST ALL OR PART OF THE MONEY IN
INVESTMENTS ALLOWED FOR CASUALTY INSURERS, AS PROVIDED IN §§ 5-601
THROUGH 5-609 OF THIS ARTICLE.

(D)    DEADLINE FOR DEPOSIT OF GROSS EXCESS SURCHARGE.

AN ASSOCIATION MEMBER SHALL DEPOSIT WITH THE ASSOCIATION ANY
GROSS EXCESS SURCHARGES RECEIVED BECAUSE OF A FUTURE ASSESSMENT NOT
LATER THAN OCTOBER 15 AFTER THE SURCHARGE YEAR IN WHICH THE GROSS
EXCESS SURCHARGE WAS RECEIVED.

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