Ch. 57

1997 LAWS OF MARYLAND

(1) On or before the last day of February each year, the Board shall
determine and file with the Commissioner an estimate of the assessments needed to fund
the losses incurred by the Pool in the previous calendar year.

(2) If the Board determines that the assessments needed to fund the losses
incurred by the Pool in the previous calendar year will exceed 5% of the total premiums
earned that year from health benefit plans that are delivered or issued for delivery in the
State, the Board shall evaluate the operation of the Pool and report its findings to the
Commissioner within 90 days after the end of the calendar year in which the losses were
incurred.

(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 individuals and groups.

(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.

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