Md. Code, Insurance § 3-111
This is the official text of Md. Code, Insurance § 3-111, part of Maryland’s Code, Insurance — regulates insurance companies and the policies they sell.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§3–111.
Official statutory text
(a) The directors of a domestic mutual insurer shall assess its members who, at any time during the 36 months before the notice of assessment is mailed to them under § 3-112(b) of this subtitle, held policies providing for contingent liability, if:
(1) the assets of the domestic mutual insurer at any time are less than its liabilities plus the minimum surplus required to be maintained to transact the kind of insurance being transacted by the domestic mutual insurer; and
(2) the deficiency is not being cured from other sources.
(b) Members assessed under this section are liable to the domestic mutual insurer for the amount assessed.
(c) (1) The total of assessments shall be sufficient to:
(i) cure the deficiency; and
(ii) provide reasonable working funds above the minimum surplus, not exceeding 5% of the domestic mutual insurer’s liabilities on the date that the deficiency was determined.
(2) A member’s assessment may not exceed the lesser of:
(i) one policy premium; or
(ii) the premium for a full year.
(d) The assessment on a policy with contingent liability shall be computed based on the premiums earned on the policy during the period to which the assessment relates.
(e) A member may not have an offset against an assessment for which the member is liable because of a claim for an unearned premium or loss payable.
(1) the assets of the domestic mutual insurer at any time are less than its liabilities plus the minimum surplus required to be maintained to transact the kind of insurance being transacted by the domestic mutual insurer; and
(2) the deficiency is not being cured from other sources.
(b) Members assessed under this section are liable to the domestic mutual insurer for the amount assessed.
(c) (1) The total of assessments shall be sufficient to:
(i) cure the deficiency; and
(ii) provide reasonable working funds above the minimum surplus, not exceeding 5% of the domestic mutual insurer’s liabilities on the date that the deficiency was determined.
(2) A member’s assessment may not exceed the lesser of:
(i) one policy premium; or
(ii) the premium for a full year.
(d) The assessment on a policy with contingent liability shall be computed based on the premiums earned on the policy during the period to which the assessment relates.
(e) A member may not have an offset against an assessment for which the member is liable because of a claim for an unearned premium or loss payable.
Status: in_force · Read it on the official government site
Need a lawyer in Maryland?
Find a Maryland lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.