Ch. 11

1996 LAWS OF MARYLAND

"Insurance" § 1-101           .           .

"Lawyer" § 24-101.
"Person" § 1-101
"Policy" § 1-101
"Practice law" § 24-101
"Property insurance" § 1-101
"Reinsurance" § 1-101
"Society" § 24-101
"Surety insurance" § 1-101

24-107. RATE STABILIZATION RESERVE FUND.
(A) DEFINITIONS.

(1)      IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.           

(2)     "FUND" MEANS THE RATE STABILIZATION RESERVE FUND.

(3)      "FUND CHARGE" MEANS A RATE STABILIZATION RESERVE FUND
CHARGE.

(B) ESTABLISHED.

(1)     THERE IS A RATE STABILIZATION RESERVE FUND.

(2)     THE FUND SHALL BE ENTERED INTO THE FINANCIAL STATEMENT
OF THE SOCIETY AS A SPECIAL SURPLUS FUND OF THE SOCIETY ALONG WITH OTHER
PREMIUM AND LOSS RESERVES.

(C)     ADMINISTRATION AND VALUATION.

THREE DIRECTORS OF THE SOCIETY SHALL ADMINISTER THE FUND AND,
TOGETHER WITH THE COMMISSIONER OR DEPUTY OF THE COMMISSIONER, SHALL
VALUE THE FUND ANNUALLY.

(D)    POLICYHOLDERS TO PAY FUND CHARGE.

(1)      EACH POLICYHOLDER OF THE SOCIETY SHALL PAY TO THE SOCIETY
A FUND CHARGE.

(2)     THE DIRECTORS OF THE SOCIETY SHALL DETERMINE THE AMOUNT
OF THE FUND CHARGE.

(3)     THE FUND CHARGE SHALL BE STATED SEPARATELY IN EACH
POLICY.

(4)     THE SOCIETY SHALL CANCEL THE POLICY OF EACH POLICYHOLDER
THAT FAILS TO PAY THE FUND CHARGE.

(5)     THE FUND CHARGE SHALL BE COLLECTED UNTIL THE NET BALANCE
OF THE FUND IS NOT LESS THAN THE PROJECTED SUM OF THE PREMIUMS TO BE
WRITTEN IN THE YEAR AFTER THE VALUATION DATE.

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