Maine Revised Statutes Title 24-A Sec. 4440-A – Special assessment
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1. Special assessment. If the maximum assessment, together with the other assets of the association in any account, does not provide in any one year in any account an amount sufficient to make all necessary payments from that account, the shortfall shall be assessed as an obligation of the other accounts of the association, with each member insurer‘s assessment to be in the proportion that its net direct written premiums for the calendar year preceding the assessment on the kinds of insurance in the accounts to be assessed bears to the total net direct written premiums of all member insurers for the same calendar year on the kinds of insurance in those accounts. The total of assessments against a member insurer under this section and section 4440 for any account in any one calendar year shall not exceed 2% of that member’s net direct written premium on the kinds of insurance written in that account for the next preceding calendar year.
[PL 1989, c. 67, §8 (NEW).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 4440-A
- Account: means any one of the 3 accounts created by section 4436. See Maine Revised Statutes Title 24-A Sec. 4435
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means the Maine Insurance Guaranty Association created under section 4436. See Maine Revised Statutes Title 24-A Sec. 4435
- Board of directors: means the board of directors of the association. See Maine Revised Statutes Title 24-A Sec. 4435
- in writing: include printing and other modes of making legible words. See Maine Revised Statutes Title 1 Sec. 72
- Insurer: means any insurer as defined in section 4. See Maine Revised Statutes Title 24-A Sec. 4435
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Member insurer: means any authorized insurer that writes any kind of insurance to which this subchapter applies and that is not a risk retention group as defined in section 6093, subsection 13. See Maine Revised Statutes Title 24-A Sec. 4435
- Net direct written premiums: means direct gross premiums written on insurance policies to which this subchapter applies, less return premiums thereon and dividends paid or credited to policyholders on such direct business. See Maine Revised Statutes Title 24-A Sec. 4435
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
2. Limit on assessment. Subject to the 2% limitation, an assessment made under this section may not exceed 5% of the average of a member insurer’s net income of the 3 years prior to the year in which the assessment is made for any member insurer:
A. That has surplus of less than $15,000,000 and either a ratio of total net direct written premium to total surplus greater than 2 or net income of less than $250,000 for the year preceding the assessment. For purposes of this subsection, “net income” means the sum of underwriting income and investment income, net of dividends to policyholders and federal and foreign income taxes incurred, as reported on the insurer’s annual statement filed with the superintendent. “Total surplus” means surplus as regards policyholders, as reported on the insurer’s annual statement filed with the superintendent; or [PL 1995, c. 289, §17 (AMD).]
B. That has a surplus of less than $15,000,000 and has fewer than 3,000 policyholders. [PL 1995, c. 289, §17 (AMD).]
[PL 1995, c. 289, §17 (AMD).]
3. Repealer.
[PL 1989, c. 67, §8 (NEW); PL 1989, c. 751, §5 (RP).]
4. Notification to Legislature. Within 7 days after the board of directors votes to levy an assessment under this section, the chair of the board of directors shall notify the chairs of the legislative committee having jurisdiction over insurance matters that the association has voted to make such an assessment. The notification must:
A. Be in writing; and [PL 1989, c. 751, §6 (NEW).]
B. Include the total amount to be assessed against each account and the name of the account to which the assessed funds will be credited. [PL 1989, c. 751, §6 (NEW).]
[PL 1989, c. 751, §6 (NEW).]
SECTION HISTORY
PL 1989, c. 67, §8 (NEW). PL 1989, c. 641, §§1,2 (AMD). PL 1989, c. 751, §§5,6 (AMD). PL 1995, c. 289, §17 (AMD).