Source: https://law.justia.com/codes/maryland/2013/article-gin/section-20-405/
Timestamp: 2020-06-03 11:05:08
Document Index: 451073112

Matched Legal Cases: ['§ 20', '§ 20', '§ 20', '§ 20', '§20', '§ 20']

§ 20-405 - Assessments generally :: 2013 Maryland Code :: US Codes and Statutes :: US Law :: Justia
Justia US Law US Codes and Statutes Maryland Code 2013 Maryland Code INSURANCE § 20-405 - Assessments generally
§ 20-405 - Assessments generally
MD Ins Code § 20-405 (2013) What's This?
§20-405.
(a) In this section, “net direct written premiums” means direct gross premiums written on all policies of motor vehicle liability insurance and motor vehicle physical damage insurance less return premiums or dividends paid or credited to policyholders with respect to those policies.
(b) On or before June 30 of each year in which the Board of Directors receives the certification of an actual commercial auto or private passenger auto assessment for a preceding calendar year, the Board of Directors shall perform the duties specified in this section.
(c) The Board of Directors shall obtain from the Commissioner the aggregate net direct written premiums of all Association members during the most recent calendar year determined by the Commissioner for commercial auto and private passenger auto divisions of motor vehicle liability insurance and motor vehicle physical damage insurance.
(d) (1) The Board of Directors shall calculate assessment allocation percentages for commercial auto and private passenger auto divisions by dividing the most recent certified assessment for commercial auto and private passenger auto divisions by the total of:
(i) the respective aggregate net direct written premiums obtained under subsection (c) of this section; and
(ii) the respective total net direct written premiums of the Fund for the same period.
(2) The assessment allocation percentage for the private passenger auto division may not exceed 3%.
(e) The Board of Directors shall give notice of the assessment allocation percentages determined under this section to the Fund, the Commissioner, and all Association members.
(f) The Board of Directors promptly shall assess and collect from each Association member for the commercial auto and private passenger auto divisions an assessment obtained by:
(1) multiplying the Association member’s net direct written premiums in each division for the most recent calendar year determined by the Commissioner by the appropriate assessment allocation percentage, calculated under subsection (d) of this section; and
(2) adjusting the resulting product for any surcharge excess or shortfall experienced by the Association member for the previous applicable surcharge year.
(g) An Association member may deduct an assessment payment from a retaliatory tax but may not deduct the payment from any other assessment or tax required by law.
(h) (1) The Association:
(i) first, shall deposit the certified assessment into the Insufficiency Assessment Reserve Fund that is created under § 20-410 of this subtitle and apply the appropriate parts of the certified assessment to the private passenger auto and commercial auto divisions of the Insufficiency Assessment Reserve Fund; and
(ii) then, shall pay to the Fund the entire certified assessment in one sum, less the part of the certified assessment allocated to the Fund.
(2) Any money in the Insufficiency Assessment Reserve Fund from a previous year shall be paid to the Fund on December 31 of each year.