PARRIS N. GLENDENING, Governor

Ch. 11

(6) THE FUND SHALL BE CREDITED WITH ALL FUND CHARGES
COLLECTED FROM POLICYHOLDERS AND, IN ANY YEAR IN WHICH THE SOCIETY HAS
AN OPERATING LOSS, BE CHARGED WITH THE LOSS.

(E)     POLICYHOLDERS SUBJECT TO ASSESSMENT.

(1)      SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, EACH
POLICYHOLDER IS SUBJECT TO ASSESSMENT AS PROVIDED IN §§ 3-110, 3-111, AND
3-112 OF THIS ARTICLE.

(2)     THE AMOUNT OF ALL ASSESSMENTS:

(I)      MAY NOT EXCEED THE PREMIUM FOR A FULL YEAR
CALCULATED AS OF THE POLICY ANNIVERSARY IMMEDIATELY PRECEDING THE
TIME OF ASSESSMENT; AND

(II)     SHALL BE REDUCED IN THE PROPORTION THAT THE
PERCENTAGE OF THE NET BALANCE OF THE FUND AT THE TIME OF ASSESSMENT
BEARS TO $5,000,000.

(3)     WITH THE APPROVAL OF THE COMMISSIONER, THE ASSESSABLE
LIABILITY OF POLICYHOLDERS THAT DOES NOT EXCEED 5% OF THE ANNUAL
PREMIUM MAY BE EXTINGUISHED.

(F)     NONASSESSABLE POLICIES.

IF THE SOCIETY MEETS ALL APPLICABLE REQUIREMENTS OF THIS ARTICLE
ABOUT THE SALE OF NONASSESSABLE POLICIES, INCLUDING THE REQUIREMENTS
OF §§ 4-104, 4-105, AND 4-106 OF THIS ARTICLE, THE SOCIETY MAY ISSUE
NONASSESSABLE POLICIES SUBJECT TO:

(1)      § 3-113 OF THIS ARTICLE;

(2)     ALL OTHER APPLICABLE PROVISIONS OF THIS ARTICLE; AND

(3)     THE CORPORATIONS AND ASSOCIATIONS ARTICLE.

REVISOR'S NOTE: Subsection (a)(1) of this section is new language added as the
standard introductory language of a definition subsection.

Subsection (a)(2) of this section is new language added to avoid repetition of
the full title of the Rate Stabilization Reserve Fund throughout this section.

Subsection (a)(3) of this section is new language added to avoid repetition of
the full phrase "Rate Stabilization Reserve Fund charge" throughout this
section.

Subsections (b) through (f) of this section are new language derived without
substantive change from former Art. 48A, § 571.

In subsections (d)(1) and (e)(1) and (3) of this section, the former references
to each policyholder "member" and "member" policyholders are deleted as
redundant. Each "policyholder" is also a "member" of the Society.

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