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§ 20-410. Insufficiency Assessment Reserve Fund

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 20. Maryland Automobile Insurance Fund (Refs & Annos)
Subtitle 4. Industry Automobile Insurance Association (Refs & Annos)
MD Code, Insurance, § 20-410
§ 20-410. Insufficiency Assessment Reserve Fund
In general
(a) There is an Insufficiency Assessment Reserve Fund.
Contents of Fund
(b) The Insufficiency Assessment Reserve Fund shall be maintained by the Association and shall consist of:
(1) payments of assessment surcharges collected by the Association to cover any actual operating loss that the Fund sustains;
(2) any gross excess surcharges received by an Association member on account of an assessment made under this subtitle; and
(3) the full amount of the income from assessment payments and gross excess surcharges in investments.
Fund moneys held in separate interest-bearing accounts
(c)(1) Except as provided in paragraph (2) of this subsection, the Association shall hold money of the Insufficiency Assessment Reserve Fund in trust in a separate interest-bearing account in a financial institution in the State for the use of the Fund.
(2) The Association may authorize the financial institution where the money is deposited to invest all or part of the money in investments allowed for casualty insurers, as provided in §§ 5-601 through 5-609 of this article.
Deadline for deposit of gross excess surcharges
(d) An Association member shall deposit with the Association any gross excess surcharges received because of a future assessment not later than October 15 after the surcharge year in which the gross excess surcharge was received.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 243N.
MD Code, Insurance, § 20-410, MD INSURANCE § 20-410
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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