376.737. Deferment of assessment, how, when--maximum assessment--refund of, when--members may increase premiums to cover assessments.
Deferment of assessment, how, when--maximum assessment--refund of,when--members may increase premiums to cover assessments.
376.737. 1. The association may abate or defer, in wholeor in part, the assessment of a member insurer if, in theopinion of the board, payment of the assessment would endangerthe ability of the member insurer to fulfill its contractualobligations. In the event an assessment against a memberinsurer is abated, or deferred in whole or in part, the amountby which such assessment is abated or deferred may be assessedagainst the other member insurers in a manner consistent withthe basis for assessments set forth in this section.
2. The total of all assessments upon a member insurer foreach account shall not in any one calendar year exceed twopercent of such insurer's average premiums received in thisstate on the policies and contracts covered by the accountduring the three calendar years preceding the year in which theinsurer became an impaired or insolvent insurer. If the maximumassessment, together with the other assets of the association inany account, does not provide in any one year in either accountan amount sufficient to carry out the responsibilities of theassociation, the necessary additional funds shall be assessed assoon thereafter as permitted by sections 376.715 to 376.758.
3. The board may provide in the plan of operation a methodof allocating funds among claims, whether relating to one ormore impaired or insolvent insurers, when the maximum assessmentwill be insufficient to cover anticipated claims.
4. The board may, by an equitable method as established inthe plan of operation, refund to member insurers, in proportionto the contribution of each insurer to that account, the amountby which the assets of the account exceed the amount the boardfinds is necessary to carry out during the coming year theobligations of the association with regard to that account,including assets accruing from assignment, subrogation netrealized gains and income from investments. A reasonable amountmay be retained in any account to provide funds for thecontinuing expenses of the association and for future losses.
5. It shall be proper for any member insurer, indetermining its premium rates and policy owner dividends as toany kind of insurance within the scope of sections 376.715 to376.758, to consider the amount reasonably necessary to meet itsassessment obligations under the provisions of sections 376.715to 376.758.
(L. 1988 S.B. 430 §§ 17, 18, 19)