§ 4708. Contingent liability. (a) The municipal cooperation agreement
and the plan document delivered to each participating municipal
corporation shall provide that every municipal corporation participating
in the municipal cooperative health benefit plan shall be liable in the
event of an order issued pursuant to subsection (b) of this section for
an assessment, in addition to the amount of premium equivalent paid or
payable.

(b) If the municipal cooperative health benefit plan does not have
admitted assets, as defined in section one hundred seven of this
chapter, at least equal to the aggregate of its liabilities, reserves
and minimum surplus required by this article, the governing board of
such plan shall, within thirty days thereafter, order an assessment for
the amount that will provide sufficient funds to remove such impairment
and collect from each municipal corporation a pro rata share of such
assessed amount.

(c) Every municipal corporation that participated in the municipal
cooperative health benefit plan at any time during the two-year period
prior to the issuing of an assessment order by the plan's governing
board shall, if notified of such assessment, pay its pro rata share of
such assessment within ninety days after the issuance of that assessment
order.

(d) A municipal corporation's pro rata share of any assessment shall
be determined by applying the ratio of the total assessment to the total
contributions or premium equivalents earned during the period covered by
the assessment on all municipal corporations subject to assessment to
the contribution or premium equivalent earned during such period
attributable to such municipal corporation.

(e) The contingent liability of municipal corporations for additional
premium equivalents or assessments shall not be included as an asset in
the financial statements of the municipal cooperative health benefit
plan.