HARRY HUGHES, Governor                                       2497

EXPENSES INCURRED BY THE ASSOCIATION FOR WHICH THE ASSOCIATION
HAS ASSESSED THE MEMBER INSURERS.

(2) TO RECOUP LOSS AND EXPENSE ASSESSMENTS, THE
PROGRAM OF OPERATION SHALL PROVIDE FOR:

(I)  THE CALCULATION OF THE SURCHARGE OR RATING
FACTORS THAT ARE TO BE ADDED TO DIRECT WRITTEN PREMIUMS FOR ALL
CASUALTY INSURANCE, INCLUDING PREMIUMS WRITTEN BY THE
ASSOCIATION, EXCEPT:

1. PROPERTY AND HOMEOWNER INSURANCE;

2. MEDICAL MALPRACTICE INSURANCE; AND

3. MOTOR VEHICLE INSURANCE; AND

4. WORKERS' COMPENSATION INSURANCE; AND

(II) THE ADJUSTMENT EACH YEAR OF THE SURCHARGE
OR RATING FACTORS TO REFLECT ANY PREVIOUS OVER OR UNDER
RECOUPMENT OF ASSESSMENT.

601. 602.

(A) THE ASSOCIATION SHALL BE ACTIVATED ISSUE POLICIES OF
INSURANCE ONLY IF, AFTER A HEARING, THE COMMISSIONER FINDS THAT
COMMERCIAL CASUALTY INSURANCE IS UNAVAILABLE FOR A PARTICULAR
SUBPOOL AND THAT:

(1)  A SUBSTANTIAL NUMBER OF COMMERCIAL ENTITIES
WITHIN ANY SUBPOOL ARE OR WITHIN 6 MONTHS WILL BE UNABLE TO
OBTAIN COMMERCIAL CASUALTY INSURANCE FROM AN INSURER AUTHORIZED
TO DO BUSINESS IN THIS STATE INCLUDING OR AN APPROVED SURPLUS
BINES-INSURERS LINE INSURER;

(2)  THE LACK OF COMMERCIAL CASUALTY LIABILITY
INSURANCE SEVERELY HAMPERS THE OPERATION OF THE COMMERCIAL
ENTITIES IN THIS SUBPOOL;

(3)  THE LACK OF COMMERCIAL CASUALTY INSURANCE WILL
CAUSE A SUBSTANTIAL NUMBER OF COMMERCIAL ENTITIES IN THE SUBPOOL
TO CEASE OPERATIONS IN THIS STATE; AND

(4)  THE CESSATION OF OPERATION OF A SUBSTANTIAL
NUMBER OF COMMERCIAL ENTITIES IN A SUBPOOL WILL BE DETRIMENTAL TO
THE GENERAL WELFARE OF THE CITIZENS OF THIS STATE.

(B) WITHIN 15 DAYS AFTER A FINDING BY THE COMMISSIONER
UNDER SUBSECTION (A) OF THIS SECTION THAT COMMERCIAL CASUALTY
INSURANCE IS UNAVAILABLE IN A CERTAIN SUBPOOL, THE COMMISSIONER
SHALL ORDER ALL INSURERS THAT ARE LICENSED TO WRITE GENERAL
CASUALTY INSURANCE IN THIS STATE TO CREATE A JOINT INSURANCE
UNDERWRITING ASSOCIATION FOR COMMERCIAL CASUALTY INSURANCE.