PARRIS N. GLENDENING, Governor

Ch. 35

(3) THE EVALUATION REQUIRED UNDER PARAGRAPH (2) OF THIS
SUBSECTION SHALL INCLUDE:

(I) ANY RECOMMENDATIONS FOR CHANGES TO THE PLAN OF

OPERATION;

(II) AN ESTIMATE OF FUTURE ASSESSMENTS;

(III) THE ADMINISTRATIVE COSTS OF THE POOL;

(IV) THE APPROPRIATENESS OF THE PREMIUMS CHARGED;

(V) THE LEVEL OF INSURER RETENTION UNDER THE POOL; AND

(VI) THE COSTS OF COVERAGE FOR SMALL EMPLOYERS.

(4) IF THE BOARD FAILS TO FILE THE REPORT WITH THE
COMMISSIONER WITHIN 90 DAYS AFTER THE END OF THE APPLICABLE CALENDAR
YEAR, THE COMMISSIONER MAY EVALUATE THE OPERATIONS OF THE POOL AND
IMPLEMENT AMENDMENTS TO THE PLAN OF OPERATION THAT THE COMMISSIONER
CONSIDERS NECESSARY TO REDUCE FUTURE LOSSES AND ASSESSMENTS.

(E) EXCESS OF ASSESSMENTS OVER NET LOSSES.

IF ASSESSMENTS EXCEED NET LOSSES OF THE POOL, THE EXCESS SHALL BE
HELD IN AN INTEREST-BEARING ACCOUNT AND USED BY THE BOARD TO OFFSET
FUTURE LOSSES, INCLUDING RESERVES FOR INCURRED BUT NOT REPORTED
CLAIMS, OR TO REDUCE POOL PREMIUMS.

(F) DETERMINATION OF ASSESSMENT SHARE.

THE BOARD ANNUALLY SHALL DETERMINE THE ASSESSMENT SHARE OF EACH
REINSURING CARRIER BASED ON ANNUAL STATEMENTS AND OTHER REPORTS
THAT THE BOARD CONSIDERS NECESSARY AND THAT REINSURING CARRIERS FILE
WITH THE BOARD.

(G) PENALTY FOR LATE PAYMENT OF ASSESSMENTS.

THE PLAN OF OPERATION SHALL PROVIDE FOR IMPOSITION OF AN INTEREST
PENALTY FOR LATE PAYMENT OF ASSESSMENTS.

(H) DEFERMENT OF PAYMENT OF ASSESSMENT.

(1) (I) A REINSURING CARRIER MAY SEEK FROM THE COMMISSIONER
A DEFERMENT FROM ALL OR PART OF AN ASSESSMENT IMPOSED BY THE BOARD.

(II) THE REQUEST FOR DEFERMENT SHALL BE MADE IN WRITING
TO THE COMMISSIONER WITHIN 15 DAYS AFTER RECEIPT OF THE ASSESSMENT
NOTICE.

(2) THE COMMISSIONER MAY DEFER ALL OR PART OF THE ASSESSMENT
OF A REINSURING CARRIER IF THE COMMISSIONER DETERMINES THAT PAYMENT
OF THE ASSESSMENT WOULD PLACE THE REINSURING CARRIER IN A FINANCIALLY
IMPAIRED CONDITION.

- 1169 -