Deficit sustained by the association.

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Any deficit sustained by the association in any year must be recouped, pursuant to the plan of operation and the rating plan then in effect, by one or both of the following procedures:

(1) an assessment upon the policyholders, which may not exceed one additional annual premium at the then current rate;

(2) a rate increase applicable prospectively.

HISTORY: 1987 Act No. 62, Section 12; 1993 Act No. 181, Section 833.


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