Maryland § 20-406
Full text of Maryland Maryland Code § 20-406, with citation guidance and answers to common questions.
§ 20-406.
(a) (1) The Commissioner promptly shall review the assessment allocation percentages calculated by the Association.
(2) Unless the Commissioner finds the calculation to be inaccurate, the Commissioner shall authorize each Association member to impose an assessment surcharge on each policy of motor vehicle liability insurance or motor vehicle physical damage insurance that is written or renewed in the State during the 1-year period beginning on the next July 1 following notice of the assessment.
(3) Subject to § 20-407 of this subtitle, the assessment surcharge shall be calculated by applying the appropriate assessment allocation percentage that is adjusted for any excess or shortfall to the premium at the inception or renewal of the policy.
(4) The assessment surcharge may not be:
(i) subject to change or refund; or
(ii) considered premium income for the State premium tax or the payment of commissions.
(b) (1) In conformity with §§ 20-405 through 20-409 of this subtitle, each year the Fund shall impose an assessment surcharge on all of its policyholders as if the Fund were a member of the Association.
(2) The Fund may not make a payment to the Insufficiency Assessment Reserve Fund.
(3) The Fund shall account separately for the assessment surcharges that the Fund assesses and receives.
Frequently Asked Questions About Maryland § 20-406
What does Maryland Code § 20-406 cover?
Section 20-406 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maryland § 20-406?
A common citation format is "Maryland Code § 20-406" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maryland law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.
How does Maryland § 20-406 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.