Section Ins 1703.07 - Assessment of Members for Deficits Incurred as a Result of Policies Issued on or After January 1, 1986(a) To the extent possible, losses and expenses of the association shall be paid from premium written on association business, including any amounts earned from the investment of such premium. If these are insufficient, assessments to pay for any deficiency shall be levied as frequently as the board deems necessary and report such assessments to the commissioner.(b) If the amount of assessment under this paragraph would, in the opinion of the board, place any member of the association in financial jeopardy, the board shall reduce the amount of assessment levied against such member, and the amount by which the assessment is reduced may be allocated among the remaining members and report such action to the commissioner. For the purposes of this paragraph, "financial jeopardy" means that the member would be placed at substantial risk of failing to meet financial requirements for continued licensure in the state, if the assessment were to be imposed on it.(c) If premiums written on association business exceed the amount necessary to pay losses and expenses, the board shall apply such excess to repay members for assessments previously levied, in proportion to the amount paid by each member.(d) If premiums written on association business exceed the amount necessary to pay losses and expenses and to reimburse members for all assessments pursuant to Ins 1703.07(c), then with review and approval by the commissioner as being consistent with the purposes of this chapter, the board shall authorize the application of such excess in one or both of the following ways: (1) Against and to reduce future assessments of the association; or(2) Distribute the excess to such health care providers covered by the association as is just and equitable.(e) The "amount necessary to pay losses and expenses" shall be determined using accepted actuarial methodologies and standards of practice. The process and time frame by which these amounts are determined shall be submitted by the board to the commissioner for review and approval as being consistent with accepted actuarial methodologies and standards of practice and RSA 412:15, 412:16 and 412:26, as well as Ins 1703.11 and Ins 902.(f) If the application of paragraph (c) is insufficient to repay any prior assessments paid by members of the association, the board shall develop a reimbursement plan that includes: (1) An assessment and/or surcharge against all health care providers by the association, not to exceed 100 percent of each premium for the policy year in which the assessment or surcharge is made, as determined pursuant to Ins 1703.11 of the plan of operation provided that the payment of the assessment or surcharge may be applied over a period not to exceed 3 years in the event that it is greater than $10,000;(2) A surcharge on future policies of liability insurance not to exceed 3 percent per annum of such premium and in the case of multiple peril policies, such surcharge shall apply solely to that portion of the premium used as the basis for participation in the association.(g) The board shall advise the commissioner before entering into such reinsurance agreements as would reasonably serve to limit the possible amount of assessments against members. The reasonable cost of such reinsurance shall be considered to be a valid expense of the association for the purpose of Ins 1703.07.N.H. Admin. Code § Ins 1703.07
#7112, eff 10-29-99; ss by #7409, eff 12-1-00, EXPIRED: 12-1-08
New. #9373, eff 1-30-09