Md. Code, Insurance § 3-216
This is the official text of Md. Code, Insurance § 3-216, part of Maryland’s Code, Insurance — regulates insurance companies and the policies they sell.
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§3–216.
Official statutory text
(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.
(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.
(c) Each assessable policy issued by a reciprocal insurer shall contain a statement of the contingent liability.
(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.
(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.
(c) Each assessable policy issued by a reciprocal insurer shall contain a statement of the contingent liability.
Status: in_force · Read it on the official government site
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