Current through Register No. 12, March 21, 2024
(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.
