376.735. Assessments against members, when due, classes--amounts, how determined. - Missouri Statutes

Assessments against members, when due, classes--amounts, howdetermined.

376.735. 1. For the purpose of providing the funds necessary to carryout the powers and duties of the association, the board of directors shallassess the member insurers, separately for each account, at such time and forsuch amounts as the board finds necessary. Assessments shall be due not lessthan thirty days after prior written notice to the member insurers and shallaccrue interest at ten percent per annum on and after the due date.

2. There shall be two assessments, as follows:

(1) Class A assessments shall be made for the purpose of meetingadministrative and legal costs and other expenses and examinations conductedunder the authority of subsections 4 and 5 of section 376.742. Class Aassessments may be made whether or not related to a particular impaired orinsolvent insurer;

(2) Class B assessments shall be made to the extent necessary to carryout the powers and duties of the association under section 376.724 with regardto an impaired or an insolvent insurer.

3. The amount of any class A assessment shall be determined by the boardand may be made on a pro rata or nonpro rata basis. If pro rata, the boardmay provide that it be credited against future class B assessments. A nonprorata assessment shall not exceed one hundred fifty dollars per member insurerin any one calendar year. The amount of any class B assessment shall beallocated for assessment purposes among the accounts pursuant to an allocationformula which may be based on the premiums or reserves of the impaired orinsolvent insurer or any other standard deemed by the board in its solediscretion as being fair and reasonable under the circumstances.

4. Class B assessments against member insurers for each account shall bein the proportion that the premiums received on business in this state by eachassessed member insurer or policies or contracts covered by each account forthe three most recent calendar years for which information is availablepreceding the year in which the insurer became impaired or insolvent, as thecase may be, bears to such premiums received on business in this state forsuch calendar years by all assessed member insurers.

5. Assessments for funds to meet the requirements of the associationwith respect to an impaired or insolvent insurer shall not be made untilnecessary to implement the purposes of sections 376.715 to 376.758.Classification of assessments under subsections 1 and 2 of this section andcomputation of assessments under this subsection shall be made with areasonable degree of accuracy, recognizing that exact determinations may notalways be possible. In no case shall a member insurer be liable under class Aor class B for assessments in any account enumerated in section 376.720, forwhich such insurer is not licensed by the department of insurance, financialinstitutions and professional registration to transact business.

(L. 1988 S.B. 430 §§ 15, 16)