Financial condition; method of determining.

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In determining the financial condition of a reciprocal insurer the superintendent shall apply the following rules:

A. he shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis;

B. the surplus deposits of subscribers shall be allowed as assets except that any premium deposits delinquent for ninety (90) days shall first be charged against such surplus deposit;

C. the surplus deposits of subscribers shall not be charged as a liability;

D. all premium deposits delinquent less than ninety (90) days shall be allowed as assets;

E. an assessment levied upon subscribers, and not collected, shall not be allowed as an asset;

F. the contingent liability of subscribers shall not be allowed as an asset; and

G. the computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.

History: Laws 1984, ch. 127, § 672.


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