Maryland § 3-111
Full text of Maryland Maryland Code § 3-111, with citation guidance and answers to common questions.
§ 3-111.
(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.
Frequently Asked Questions About Maryland § 3-111
What does Maryland Code § 3-111 cover?
Section 3-111 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 § 3-111?
A common citation format is "Maryland Code § 3-111" (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 § 3-111 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.