HARRY HUGHES, Governor                                    1637

the event that the aggregate amount of surcharges received by any
association member company during the applicable recoupment year
is less than that member's assessment contribution for which the
surcharges were collected, the member's authorized surcharge
under subsection (e) of this section shall be increased
accordingly for the next appropriate recoupment year. In the
event that the aggregate amount of surcharges received by any
association member company during the applicable recoupment year
is greater than that member's assessment contribution for which
the surcharges were collected, the member shall deposit the
excess as provided in § 243N(b) and shall receive a credit for
the amount deposited against the next appropriate assessment

under § 243A and this section. THE ANNUAL ASSESSMENT ALLOCATION
PERCENTAGE MAY BE ADJUSTED BY THE INDUSTRY AUTOMOBILE INSURANCE
ASSOCIATION ON BEHALF OF ANY MEMBER COMPANY IN ORDER TO REFLECT
ANY RECOUPMENT SURPLUS OR SHORTFALL FOR THE PRIOR APPLICABLE
RECOUPMENT YEAR.

(h) Each member may keep separate and detailed records of
any expenses actually incurred that are directly attributable to
the collection of the surcharge authorized under subsection (f).
Upon verification, and if relevant, these expenses shall be
considered as appropriate cost items by the Insurance
Commissioner in any subsequent rate filing by the member.

(i) The Fund shall, for the year beginning July 1, 1984,
and for every subsequent year thereafter, surcharge all its
policyholders, as though it were a member of the [I.A.I.A.]

INDUSTRY AUTOMOBILE INSURANCE ASSOCIATION, in conformity with the

procedures and requirements established in subsections (d) [-]
THROUGH (h) above, except that there shall be no payment of any
moneys by the Fund to the association's insufficiency assessment
reserve [fund] FUNDS. The surcharges assessed and received by
the Fund shall be separately accounted for by the Fund.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall

take effect July 1, 1986.
Approved May 13, 1986.

CHAPTER 444

(House Bill 329)
AN ACT concerning

Insurance - Regulation of Competitive Rating

FOR the purpose of repealing a certain provision of law

pertaining to the termination extending the termination date
of a certain Act concerning Regulation of Competitive Rating