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Md. Code Ann., Ins. § 20-409

Redline — January 1, 2020 → current.View current text →
Current — January 1, 2024
As of January 1, 2020
(a) If the aggregate amount of assessment surcharges received by an Association member during a surcharge year is less than that Association member’s assessment payment, the Association member’s assessment surcharge authorized under § 20-406 of this subtitle shall be increased accordingly for the next appropriate surcharge year.
(a) If the aggregate amount of assessment surcharges received by an Association member during a surcharge year is less than that Association member’s assessment payment, the Association member’s assessment surcharge authorized under § 20–406 of this subtitle shall be increased accordingly for the next appropriate surcharge year.
(b) If the aggregate amount of assessment surcharges received by an Association member during a recoupment year exceeds the Association member’s assessment payment, the Association member shall deposit the excess in the Insufficiency Assessment Reserve Fund as provided in § 20-410 of this subtitle and shall receive a credit for the amount deposited against the next appropriate assessment imposed under this subtitle.
(b) (1) If the aggregate amount of assessment surcharges received by an Association member during a recoupment year exceeds the Association member’s assessment payment, the Association shall promptly return the excess to the association member.
(c) The Association may adjust the annual assessment allocation percentage for an Association member to reflect any surcharge excess or shortfall for the previous applicable surcharge year.
(2) An Association member to whom an excess is returned under paragraph (1) of this subsection shall:
(i) refund the excess to the policyholders who paid the excess; or
(ii) apply the excess as an expense reduction in a subsequent rate filing.

Official source: Maryland General Assembly. Reproduced from public-domain Maryland statutes; confirm against the official source for the current text. Not legal advice.