Minnesota Administrative Rules

2740.5400 ASSESSMENT OF PARTICIPATING MEMBERS.

Subpart 1.

Annual.

At the end of each calendar year (or other fiscal year end established by the association) the board may assess participating members on the basis of the formula established in or as a part of the reinsurance pooling agreement.

Subp. 2.

Interim.

The board may also levy interim reinsurance assessments to assure the financial ability of the association to reimburse participating members for claims paid under reinsured policies and contracts and operating and administrative expenses incurred or estimated to be incurred in the operation of the reinsurance plan until the calendar year end (or other fiscal year end established by the association) reinsurance assessment.

Interim reinsurance assessments shall be due and payable within 30 days of receipt by a participating member of an interim reinsurance assessment notice.

Interim reinsurance assessments shall be credited to each participating member in the year end reinsurance assessment calculation.

Subp. 3.

Time for payment.

Each participating member's reinsurance assessment (net after credit for any interim reinsurance assessment) shall be billed to the member by the association following each calendar year end (or other fiscal year end established by the association) and shall be due and payable within 30 days of receipt by the member of the reinsurance assessment notice.

Statutory Authority:

MS s 62E.09

Published Electronically:

October 8, 2007