§ 60C.06 — ASSESSMENTS

Minnesota § 60C.06

• Jurisdiction: Minnesota
• Part: INSURANCE
• Ch. 60C: INSURANCE GUARANTY ASSOCIATION

Text

Subdivision 1.Determination of amount.
The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bear to the net direct written premiums of all member insurers for the preceding calendar year on the kinds of insurance in the account. No member insurer may be assessed in any year on any account in an amount greater than two percent of that member insurer's net direct written premiums for the preceding calendar year on the kinds of insurance in the account.

Subd. 2.Insufficient amount.
If the maximum assessment, together with the other assets of the association in any account, does not provide in any one year in any account an amount sufficient to make all necessary payments from that account, the funds available shall be prorated and the unpaid portion shall be paid as soon thereafter as funds become available.

Subd. 3.Exemption or deferral.
The association shall exempt or defer, in whole or in part, the assessment of any member insurer, if the commissioner determines that the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance.

Subd. 4.Set off.
Each member insurer may set off against any assessment, authorized payments made on covered claims and expenses incurred in the payment of the claims by the member insurer if, in the absence of the payment, they would be chargeable to the account for which the assessment is made.

Subd. 5.
[Repealed,1988 c 541 s 14]

Subd. 6.
[Repealed,1997 c 52 s 15]

Legislative History

1971 c 145 s 6;1978 c 465 s 9;1987 c 268 art 2 s 13;1988 c 541 s 7;1991 c 325 art 6 s 6