Section 26-A2108. LIMITATION OF EXPENSES AND LOSSES PAYABLE BY SINKING FUNDS

 

2108.1Only two types of disbursements may be made from a sinking fund:

 

(a)Paid losses; and

 

(b)Allocated loss adjustment expenses.

 

2108.2A paid loss includes all sums paid to claimants, or members, or participants in the sinking fund, in direct settlement or in satisfaction of a judgment for a liability covered by the liability coverage document.

 

2108.3An allocated loss adjustment expense is an expense incurred by a sinking fund that is related to a specific claim. Allocated loss adjustment expenses include:

 

(a)Attorney’s fees for claims in a suit;

 

(b)Adjuster's fees and medical expenses incurred to determine the extent of the sinking fund's liability for particular claims; and

 

(c)Court related expenses for: expert testimony, stenographic services, summons, and copies of legal documents.

 

source

Final Rulemaking published at 36 DCR 5113 (July 21, 1989).