31A-28-208 - Assessments.
31A-28-208. Assessments.
(1) (a) To provide the funds necessary to carry out the powers and duties of theassociation, the board of directors shall assess the member insurers at the time and in the amountthe board finds necessary.
(b) An assessment under this section:
(i) is due not less than 30 days after written notice to the member insurers; and
(ii) accrues interest to the extent unpaid after the due date at the greater of:
(A) 10% per annum; or
(B) the then legal rate of interest provided in Section 15-1-1.
(2) An assessment is to be made in the amount necessary to carry out the powers andduties of the association under Section 31A-28-207 for an insolvent insurer.
(3) An assessment against a member insurer is in the proportion that the net direct writtenpremiums of the member insurer for the preceding calendar year on the kinds of insurance forwhich this part applies bears to the net direct written premiums of all member insurers for thepreceding calendar year on the kinds of insurance for which this part applies.
(4) A member insurer may not be assessed in any year for an amount greater than 2% ofthat member insurer's net direct written premiums for the preceding calendar year on the kinds ofinsurance for which this part applies.
(5) If the maximum assessment, together with the other assets of the association in theassociation account, do not provide in any one year an amount sufficient to make all necessarypayments, the funds available shall be prorated and the unpaid portion shall be paid as soon asfunds become available.
(6) The association may exempt or defer, in whole or in part, the assessment of anymember insurer, if the assessment would cause the member insurer's financial statement to reflectamounts of capital or surplus less than the minimum amounts required for a certificate ofauthority by any jurisdiction in which the member insurer is authorized to transact insurance.
(7) Each member insurer may set off against any assessment authorized payments madeon covered claims and expenses incurred in the payment of the claims by the member insurer, ifthey are chargeable to the association account.
Amended by Chapter 308, 2002 General Session