Section 26-A4020. ASSESSMENTS

4020.1Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer having contingent liability under the terms of their policies by the attorney upon approval in advance by the subscribers’ advisory committee and the Commissioner or by the Commissioner during rehabilitation or liquidation of the insurer.

4020.2Each subscriber’s share of a deficiency for which an assessment is made shall not exceed the subscriber’s aggregate contingent liability as computed in accordance with section 4023 of this chapter, and shall be computed by applying to the premium earned on the subscriber’s policy or policies, during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned from all policies subject to the assessment.

4020.3In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be sued as a base from which charges not recurring upon the renewal or extension of the policy shall be deducted.

4020.4Retrospective, audit, or other premium adjustments provided for in any policy of insurance shall not be considered assessments.

4020.5No subscriber shall have an offset against any assessment for which such subscriber is liable on account of any claim for unearned premium or losses payable.

authority

The Commissioner of the Department of Insurance, Securities, and Banking, pursuant to the authority set forth in section 22 of the Captive Insurance Company Act of 2004, effective March 17, 2005 (D.C. Law 15-262; D.C. Official Code § 31-3931.21).

source

Notice of Emergency and Proposed Rulemaking published at 54 DCR 12099 (December 14, 2007)[EXPIRED]; as amended by Notice of Final Rulemaking published at 55 DCR 479, 487 (January 18, 2008).