33-23-513. Recoupment of deficit and member assessments. (1) (a) If the association experiences an underwriting deficit for any year, the deficit must be recouped as provided in the plan of operation and the rating plan must contain the procedures provided for in subsections (1)(b) and (1)(c).
     (b) The board of directors shall certify the underwriting deficit to the commissioner. The certification is subject to the review of the commissioner.
     (c) After review of the certification, the deficit must be recouped by:
     (i) first, reimbursement of the deficit in the following order:
     (A) from the stabilization reserve fund, as provided in 33-23-514;
     (B) a premium contingency assessment on the association's policyholders, as provided in 33-23-515, if the reimbursement in subsection (1)(c)(i)(A) is insufficient; and
     (C) an assessment upon the members, as provided in 33-23-521, if the reimbursement in subsections (1)(c)(i)(A) and (1)(c)(i)(B) is insufficient; and
     (ii) second, a premium rate increase on the association's policyholders applicable prospectively, as provided in 33-23-512.
     (2) Reimbursements from the stabilization reserve fund and premium contingency assessments imposed under this section and premiums collected under 33-23-512 and 33-23-522 and subsection (1)(c)(ii) of this section must be sufficient to recoup all expenses of the association and to reimburse the members for all assessments imposed on them by the association.

     History: En. Sec. 10, Ch. 475, L. 2005.