20-2212. Deficits; equitable assessments; premium tax credits
A. On a determination that within the next one hundred eighty days thereafter the association will be unable to pay its outstanding lawful obligations as they mature in the regular course of business as shown by an excess of such lawful obligations over admitted assets, the association shall certify to the director the existence of this condition.
B. At the time of certification, the association shall submit a schedule of policyholder surcharges and a plan of member assessments which, in combination, are sufficient to assure the continued sound financial operation of the association. The surcharge may not exceed ten per cent of the total premium paid for a policy or policies obtained through the association. Member assessments shall not exceed one per cent of each member's net direct premium in this state attributable to the line of insurance, the writing of which requires it to be a member of the association.
C. Any member of the association subject to an assessment in any one calendar year shall be allowed a premium tax credit beginning in the following calendar year, at the rate of twenty per cent per year for five years.
D. The association shall certify to the director the estimated amount of any deficit remaining after the termination of all underwriting activities of the association. Policyholder surcharges are limited to ten per cent of the annual premium.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.