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§ 3-219. Savings paid to subscribers or policyholders from earned surplus

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, § 3-219
§ 3-219. Savings paid to subscribers or policyholders from earned surplus
Currentness
In general
(a)(1) The attorney in fact of a reciprocal insurer:
(i) periodically may fix and determine savings to be paid to each subscriber or policyholder on participating policies or contracts from the earned surplus of the reciprocal insurer; and
(ii) after doing so, shall establish an adequate surplus from which the savings are to be paid.
(2) The attorney in fact may not fix or pay savings if the payment of savings will impair the minimum surplus or other required surplus of the reciprocal insurer.
Classifications of policies or contracts
(b)(1) In fixing or paying savings, the attorney in fact may make reasonable classifications of policies or contracts.
(2) Policies or contracts in the same classification shall be treated without unfair discrimination.
(3) If the reciprocal insurer offers an alternative method or plan for savings classifications, the policy or contract shall contain an endorsement that states the class to which it is assigned.
Notification of policyholder or subscriber
(c) Each reciprocal insurer shall establish a procedure for notifying each policyholder or subscriber about savings fixed and payable under the policyholder's or subscriber's policy or contract.

Credits

Added by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997.
Formerly Art. 48A, § 299.
MD Code, Insurance, § 3-219, MD INSURANCE § 3-219
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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