Section Ins 1703.06 - Servicing Carrier Allowance(a) Servicing carriers shall pay losses, receive reimbursement for expenses, and pay commissions on the following basis:(1) The servicing carrier shall pay losses from the association's account as provided in Ins 1703.05(e);(2) The servicing carrier shall be reimbursed as provided in Ins 1703.05(e) for expenses of association business in accordance with a fee negotiated between the servicing carriers and the board of directors prior to appointment by the commissioner pursuant to Ins 1703.05(a);(3) The servicing carriers shall pay commissions of 7 1/2% from the association's account as provided in Ins 1703.05(e) to the producer on new and renewal business written through the association; and(4) The servicing carrier shall not pay any commission on amounts received pursuant to Ins 1703.08(b).(b) The board shall authorize a servicing carrier such additional reimbursement as deemed reasonable by the board for expenses incurred in qualifying for, or ceasing to be, a servicing carrier and report such authorization to the commissioner.(c) The board shall authorize the reimbursement of a servicing carrier for normal insurance business losses incurred in connection with association business. Such normal business losses shall include any losses or reasonable expenses paid or incurred which are not otherwise reimbursed under (a) or (b) above, or which are in excess of the allowances provided thereunder, or which would reduce the service fee allowed and report such authorization to the commissioner. However, such losses shall not include any loss or expense incurred as a result of fraud or dishonesty on the part of any personnel of a servicing carrier, including but not limited to independent adjusters, or on the part of others with whom the servicing carrier has entered into contracts for the performance of all or part of the duties required of servicing carriers.(d) Losses or expenses reimbursable to servicing carriers for which sufficient funds are not otherwise available shall be obtained by the board through an assessment against members of the association.(e) In the event that the board shall be required to act as a servicing carrier pursuant to Ins 1703.05(c), the board shall be considered to be a servicing carrier for the purposes of Ins 1703.06.(f) The board shall maintain a complete accounting of all loss and expense reimbursements allowed servicing carriers under the provisions of Ins 1703.06.N.H. Admin. Code § Ins 1703.06
#7112, eff 10-29-99; ss by #7409, eff 12-1-00, EXPIRED: 12-1-08
New. #9373, eff 1-30-09