33-23-515. Premium contingency assessment to cover deficit. (1) If the association suffers an underwriting deficit for any year and recoupment of the underwriting deficit by reimbursement, as provided in 33-23-513(1)(c)(i)(A), is insufficient, each association policyholder shall pay to the association a premium contingency assessment as provided in the plan of operation. The assessment must bear the same ratio to the amount of the deficit as the policyholder's premium for the year for medical malpractice insurance written or reinsured by the association bore to the total premiums paid to the association for the year. The association may cancel any policy of any policyholder who fails to pay the premium contingency assessment and need not defend or pay any future claims against that policyholder. A deficit premium contingency assessment that cannot be collected from a policyholder may not be assessed against any other policyholder.
(2) The association shall amend the amount of its certification of deficit to the commissioner as the value of its incurred losses becomes finalized, and the association may amend its recoupment procedure accordingly.
(3) The board of directors may require all members to contribute on a temporary basis to the financial requirements of the association prior to recoupment of any deficit in the proportion specified in the plan.
(4) The association may not collect stabilization reserve assessments, as provided in 33-23-514, in any year in which premium contingency assessments are collected under this section.
History: En. Sec. 12, Ch. 475, L. 2005.
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