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§ 3-216. Contingent assessment liability of subscribers

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 2. Reciprocal Insurers (Refs & Annos)
MD Code, Insurance, § 3-216
§ 3-216. Contingent assessment liability of subscribers
Currentness
Nature of liability
(a)(1) Except as to a nonassessable policy, each subscriber has a contingent assessment liability, in the amount stated in the power of attorney or subscriber's agreement, for payment of losses and expenses incurred while the subscriber's policy is in force.
(2) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer is individual, several, and proportionate and is not joint.
Rate of contingent liability
(b)(1) The contingent liability of each subscriber shall be at the rate of not less than one additional annual premium or premium deposit stated in the policy but not more than 10 times the annual premium or premium deposit.
(2) The maximum total contingent liability shall be calculated as set forth in § 3-217(e) of this subtitle.
Statement of contingent liability
(c) Each assessable policy issued by a reciprocal insurer shall contain a statement of the contingent liability.

Credits

Added by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997.
Formerly Art. 48A, §§ 285, 294.
MD Code, Insurance, § 3-216, MD INSURANCE § 3-216
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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