PARRIS N. GLENDENING, Governor

Ch. 592

Annotated Code of Maryland

(1996 Volume)

(As enacted by Chapter 11 of the Acts of the General Assembly of 1996)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 20-404(b)
Annotated Code of Maryland
(1996 Volume)
(As enacted by Chapter 11 of the Acts of the General Assembly of 1996)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article — Insurance

20-404.

(a)     On or before March 15 of each year, the Fund shall determine and the Board
of Trustees shall certify to the Board of Directors the information required under
subsections (b) and (c) of this section.

(b)     Subject to subsection (f) of this section, the following information certified to
the Board of Directors shall be separately identified by commercial auto and private
passenger auto results:

(1)     the statutory operating loss for the immediately preceding calendar year;
[and]

(2)     a calculation to yield [an] A PRIVATE PASSENGER AUTO assessment
limit that is determined by subtracting the year-end TOTAL surplus of the Fund for the
immediately preceding calendar year from an amount equal to 25% of the average of net
direct written PRIVATE PASSENGER AUTO premiums of the Fund for each of the three
immediately preceding calendar years; AND

(3)     A CALCULATION TO YIELD A COMMERCIAL AUTO ASSESSMENT
LIMIT THAT IS DETERMINED BY SUBTRACTING THE YEAR-END COMMERCIAL AUTO
SURPLUS OF THE FUND FOR THE IMMEDIATELY PRECEDING CALENDAR YEAR
FROM AN AMOUNT EQUAL TO 25% OF THE AVERAGE OF NET DIRECT WRITTEN
COMMERCIAL AUTO PREMIUMS OF THE FUND FOR EACH OF THE 3 IMMEDIATELY
PRECEDING CALENDAR YEARS.

(f) In a calculation made under this section, income or expenses not clearly
attributable to either commercial auto or private passenger auto may be allocated pro
rata for that year.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1997.

Approved May 22, 1997.

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