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§ 3-222. Impaired reciprocal insurers

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, § 3-222
§ 3-222. Impaired reciprocal insurers
Currentness
Insufficient assets to meet requirements
(a) If the assets of a reciprocal insurer at any time are insufficient to maintain the required surplus and to discharge its liabilities, other than a liability on account of money contributed by the attorney in fact or another person, the attorney in fact of a reciprocal insurer immediately shall:
(1) make up the deficiency; or
(2) subject to the limitations set forth in the power of attorney or subscribers' policies, levy an assessment on the subscribers for the amount needed to cure the deficiency.
Insolvent reciprocal insurers
(b) A reciprocal insurer is considered insolvent and shall be proceeded against as authorized by this article if:
(1) the attorney in fact fails to cure the deficiency or to make the assessment within 30 days after the Commissioner orders the attorney in fact to do so; or
(2) the deficiency is not cured fully within 60 days after the date the assessment was made.
Liquidation of insurer
(c) If liquidation of a reciprocal insurer is ordered, an assessment shall be levied on the subscribers in the amount, subject to the limits provided by this subtitle, that the Commissioner determines to be necessary to discharge all liabilities of the reciprocal insurer, excluding any money contributed by the attorney in fact or another person, but including the reasonable cost of the liquidation.

Credits

Added by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997.
Formerly Art. 48A, § 301.
MD Code, Insurance, § 3-222, MD INSURANCE § 3-222
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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