(a) (1) Except as provided in § 3-113 of this subtitle for nonassessable policies, each member of a domestic mutual insurer other than a life insurer is contingently liable on a pro rata basis for the discharge of the liabilities of the domestic mutual insurer.
(2) The contingent liability provided for by this subsection shall be expressly stated in each policy.
(b) Termination of the policy of a member does not relieve the member of the contingent liability for the member’s proportion, if any, of the obligations of the domestic mutual insurer that accrued while the policy was in force.
(c) The unrealized contingent liability of a member is not an asset of the domestic mutual insurer in determining its financial condition.
Structure Maryland Statutes
Subtitle 1 - Stock Insurers and Mutual Insurers
Section 3-101 - Scope of Subtitle
Section 3-102 - Applicability of General Corporation Statutes and Insurance Article
Section 3-103 - Formation of Domestic Insurers
Section 3-104 - Approval of Articles of Incorporation and Charter
Section 3-105 - Prerequisites to Solicitation by Prospective Mutual Insurer
Section 3-106 - Assets Required for Mutual Insurer -- in General
Section 3-107 - Assets Required for Mutual Insurer -- Engaging in Business on Assessable Basis
Section 3-108 - Engaging in Additional Kinds of Insurance Business
Section 3-109 - Impairment of Required Surplus
Section 3-110 - Contingent Liability of Members
Section 3-111 - Levy of Assessment
Section 3-112 - Enforcement of Contingent Liability
Section 3-113 - Issuance of Nonassessable Policies
Section 3-114 - Participating Policies
Section 3-116 - Loans to Insurers
Section 3-117 - Loans to and Guarantees of Obligations of Directors and Officers
Section 3-118 - Agreements to Pay Expenses of Management
Section 3-119 - Restrictions on Purchase and Sale of Equity Securities of Domestic Stock Insurers
Section 3-120 - Conversion of Stock Insurer to Mutual Insurer
Section 3-121 - Conversion of Mutual Insurer to Stock Insurer
Section 3-122 - Consolidations, Mergers, and Share Exchanges of Stock Insurers
Section 3-123 - Consolidations and Mergers of Mutual Insurers
Section 3-123.1 - Mutual Insurers Forming a Business Combination
Section 3-124 - Bulk Reinsurance -- Stock Insurers
Section 3-125 - Bulk Reinsurance -- Mutual Insurers
Section 3-126 - Changes in Domicile of Insurers