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§ 3-110. Contingent liability of members

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 1. Stock Insurers and Mutual Insurers (Refs & Annos)
MD Code, Insurance, § 3-110
§ 3-110. Contingent liability of members
Currentness
Pro rata basis of contingent liability
(a)(1) Except as provided in § 3-113 of this subtitle for nonassessable policies, each member of a domestic mutual insurer other than a life insurer is contingently liable on a pro rata basis for the discharge of the liabilities of the domestic mutual insurer.
(2) The contingent liability provided for by this subsection shall be expressly stated in each policy.
Termination of policy
(b) Termination of the policy of a member does not relieve the member of the contingent liability for the member's proportion, if any, of the obligations of the domestic mutual insurer that accrued while the policy was in force.
Unrealized contingent liability not an asset of insurer
(c) The unrealized contingent liability of a member is not an asset of the domestic mutual insurer in determining its financial condition.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997.
MD Code, Insurance, § 3-110, MD INSURANCE § 3-110
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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