N.H. Admin. Code § Ins 1406.13

Current through Register No. 50, December 12, 2024

Section Ins 1406.13 - Assessments and Participation

(a) Facility earned premiums, incurred losses, income, and expenses shall be determined on the basis of generally accepted insurance accounting principles. The plan of operation shall provide that all investment income earned on business reinsured by the facility shall enter into the determination of the facility's net operating results. The facility shall provide periodic settlement to the members based on the facility's net operating results. The members shall retain for their individual credit all investment income earned prior to the time facility gross premium is forwarded to the facility.

(b) Assessments to pay for facility losses and expenses shall be levied, and any profits shall be distributed, pursuant to the plan of operation.

(c) Such assessments or distributions shall be allocated among the members based on New Hampshire written or earned premium in accordance with the following:

(1) Assessments for private passenger automobile insurance, other than physical damage, shall be shared amongst the members as follows:

a. The ratio of a member's total private passenger automobile net direct written car years to the total of such car years of all members shall be used for allocation of 20 percent of the facility's profits or losses to the individual members; and

b. The ratio of a member's ceded private passenger automobile insurance car years to the total of all such ceded car years shall be used for the allocation of 80 percent of all the facility's profits or losses to the individual members;

(2) Assessments for private passenger automobile physical damage insurance shall be shared amongst the members as follows:

a. The ratio of a member's total private passenger automobile physical damage net direct written car years to the total of such car years of all members shall be used for the allocation of 20 percent of the facility's profits or losses to the individual members; and

b. The ratio of a member's ceded private passenger automobile physical damage years to the total of all such ceded car years shall be used for the allocation of 80 percent of all the facility's profits or losses to the individual members; and

(3) Assessments of facility net operation expense shall be shared amongst the members as follows:

a. The ratio of a member's total private passenger automobile net direct written car years for the most recent available calendar year to the total of such car years of all members shall be used for the allocation of 20 percent of all assets, liabilities, income, and expenses not properly chargeable to the profit or loss of ceded risks; and

b. The ratio of a member's ceded car years for the most recent available calendar year to the total of all such ceded car years shall be used for allocation of 80 percent of all assets, liabilities, income, and expenses not properly chargeable to the profit or loss of ceded risks.

N.H. Admin. Code § Ins 1406.13

(See Revision Note #1 at chapter heading for Ins 1400)

Derived from Volume XLI Number 6, Filed February 11, 2021, Proposed by # 13162, Effective 1/25/2021, Expires 1/25/2031.

Amended by Number 6, Filed February 9, 2023, Proposed by #13534, Effective 1/24/2023, Expires 1/24/2033.