South Carolina Code 38-83-120. Basis for rate increase; contribution to financial requirements of the association
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After the initial year of operation, rates, rating plans, and rating rules, and any provision for recoupment through policyholder assessment or premium rate increase must be based upon the association‘s loss and expense experience and investment income, together with any other information based upon this experience and income as the director or his designee considers appropriate. The resultant premium rates must be on an actuarially sound basis and must be calculated to be self-supporting.
If sufficient funds are not available for the sound financial operation of the association, pending recoupment as provided in § 38-83-110, all members, on a temporary basis, shall contribute to the financial requirements of the association in the manner provided for in § 38-83-130. Any such contribution must be reimbursed to the members following recoupment as provided in § 38-83-110.
Terms Used In South Carolina Code 38-83-120
- Association: means any joint underwriting association established pursuant to this chapter. See South Carolina Code 38-83-10
- Director: means the person who is appointed by the Governor upon the advice and consent of the Senate and who is responsible for the operation and management of the department. See South Carolina Code 38-1-20
- Premium: means payment given in consideration of a contract of insurance. See South Carolina Code 38-1-20