19 Miss. Code. R. 2-11.06

Current through December 10, 2024

Rule 19-2-11.06 - Experience Refund Agreement- Exhibit A

The Agent shall be entitled to receive an Experience Refund on the underwriting profit attributable to the credit insurance account covered by the Agency Agreement between the Agent and the Company. The Experience Refund shall be calculated according to the following formula:

At the end of each calendar year for which premiums were received under the Agency Agreement, the earned credit life and credit disability premiums will be determined. Earned premiums are defined as the net written premiums received less the increase in premium reserves. Premium reserves are calculated as follows:

(1) for decreasing credit life, the sum of the digits method is used;

(2) for level credit life, the pro rata method is used;

(3) for credit disability the sum of the digits method is used.From the earned premiums, the following will be deducted:

a. Claims incurred during the calendar year. Claims incurred are defined as claims paid plus the increase in:

(1) claims due and unpaid;

(2) claims in course of settlement;

(3) claims incurred but not yet reported; and

(4) present value of amounts not yet due on claims.

b. Premium taxes earned during the calendar year. Premium taxes earned are defined as premium taxes paid plus the increase in premium taxes due and unpaid.

c. Compensation paid or earned during the calendar year. Compensation shall be defined pursuant to Miss. Code Ann., Section 83-53-25, as amended.

d. Expenses Incurred

e. Any negative amounts as described below arising from prior year calculations.

If the above calculation results in a positive amount, the Company may pay to the Agent ____% of such amount as an Experience Refund. Such payment will be made within 90 days of the end of the calendar year.

If the above calculation results in a negative amount, the negative amount will be carried forward from year to year as long as necessary and will serve as a deduction in calculating the Experience Refund for subsequent calendar years.

All amounts shall be calculated in a manner consistent with instructions to the Annual Statement as required to be filed with the Mississippi Insurance Department.

If this Agreement is terminated by either party, no Experience Refund shall be paid for the year in which termination occurred or in any subsequent year.

If less than $ _______ of net written premiums are received during a calendar year, this

Agreement shall automatically terminate and no Experience Refund shall be paid for that year.

This agreement is effective ___________________________________ .

______________________________

Insurance Company Agent

By: __________________________ By: ___________________________

Date: _________________________

19 Miss. Code. R. 2-11.06

Miss. Code Ann. § 83-53-29 (Supp. 2014)

Amended 12/25/2014