MARVIN MANDEL, Governor                               743

ANY ESTIMATED INSUFFICIENCY IN ACCORDANCE WITH §243A(C).

ON OR BEFORE NOVEMBER 15 OF ANY YEAR IN WHICH THE BOARD
RECEIVES SUCH A CERTIFICATION, IT SHALL:

(1) DETERMINE FROM THE INSURANCE

COMMISSIONER THE AMOUNT OF NET DIRECT PREMIUMS WRITTEN BY

EACH MEMBER OF THE ASSOCIATION DURING THE PRECEDING

CALENDAR YEAR. "NET DIRECT PREMIUMS" MEANS DIRECT GROSS

PREMIUMS WRITTEN IN THIS STATE ON POLICIES OF MOTOR

VEHICLE LIABILITY AND PHYSICAL DAMAGE INSURANCE LESS

RETURN PREMIUMS AND DIVIDENDS PAID OR CREDITED TO

POLICYHOLDERS WITH RESPECT TO THESE POLICIES.

(2) ASSESS AND COLLECT FROM EACH MEMBER OF

THE ASSOCIATION AN AMOUNT EQUAL TO THE SAME PROPORTION OF
THE EXPECTED INSUFFICIENCY OF THE FUND CERTIFIED TO THE
ASSOCIATION AS THE MEMBER'S NET DIRECT WRITTEN PREMIUMS
DURING THE PRECEDING CALENDAR YEAR BEARS TO THE AGGREGATE
NET DIRECT WRITTEN PREMIUMS OF ALL MEMBERS OF THE
ASSOCIATION DURING THAT PRECEDING CALENDAR YEAR.
HOWEVER, THE ASSESSMENT AGAINST A MEMBER MAY NOT EXCEED 4

PERCENT OF THE AMOUNT OF ITS SAID NET DIRECT WRITTEN

PREMIUMS.

(3) DETERMINE FROM THE INSURANCE

COMMISSIONER THE AMOUNT OF ANY GROSS SURPLUS RECOUPMENT
OR NET UNREALIZED RECOUPMENT REPORTED BY EACH MEMBER OF

THE ASSOCIATION FOR THE PRECEDING 12 MONTHS ENDING

SEPTEMBER 30, IN ACCORDANCE WITH SUBSECTION (F).

(4) PREPARE AND SUBMIT TO THE INSURANCE
COMMISSIONER A SCHEDULE FOR EACH MEMBER SHOWING:

(I)          THE AMOUNT OF THE TOTAL ESTIMATED
INSUFFICIENTY OF THE FUND CERTIFIED TO THE ASSOCIATION.

(II)       THE MEMBER'S ASSESSMENT ON ACCOUNT
OF THAT INSUFFICIENCY;

(III)     THE AMOUNT OF ADJUSTMENT FOR ANY
GROSS SURPLUS RECOUPMENT OR NET UNREALIZED RECOUPMENT FOR
THE PRECEDING CALENDAR YEAR;

(IV)       THE MEMBER'S NET ASSESSMENT,

CALCULATED BY SUBTRACTING THE GROSS SURPLUS RECOUPMENT

FROM, OR ADDING THE NET UNREALIZED RECOUPMENT TO, THE

MEMBER'S ASSESSMENT;

(V) THE NET DIRECT WRITTEN PREMIUMS OF
THE MEMBER FOR THE PRECEDING CALENDAR YEAR; AND

(VI) THE PERCENTAGE THAT THE___MEMBER'S

NET ASSESSMENT BEARS TO ITS NET DIRECT WRITTEN PREMIUMS

FOR THE PRECEDING CALENDAR YEAR.

(E)         THE INSURANCE COMMISSIONER___SHALL PROMPTLY

REVIEW THE SCHEDULES SUBMITTED BY THE ASSOCIATION.

UNLESS THE COMMISSIONER FINDS THE SCHEDULE TO BE