WILLIAM DONALD SCHAEFER, Governor                   Ch. 585

(c) Any account which has been cancelled and referred [to
the Attorney General] for collection may be settled or
compromised when it shall appear to the [Attorney General, the
Comptroller, and chairman or vice-chairman] SUPERINTENDENT of the
State Accident Fund that such settlement and compromise is to the
best interests of the State Accident Fund, and any account may be
charged from the books of the State Accident Fund when it shall
appear to [the Attorney General, the Comptroller of the State,
and the chairman or vice-chairman of] the commissioners of the
State Accident Fund that such account is uncollectible.

[78.

Ten per centum of the premiums collected from employers
insured in the State Accident Fund shall be set aside by the
commissioners of the State Accident Fund for the creation of a
surplus until such surplus shall amount to the sum of fifty
thousand dollars, and thereafter five per centum of such premiums
until such time as in the judgment of said commissioners such
surplus shall be sufficiently large to cover the catastrophe
hazard. The commissioners shall also set up and maintain a
reserve adequate to meet anticipated losses and carry all claims
and policies to maturity.]

78.

(A) (1) THE COMMISSIONERS OF THE STATE ACCIDENT FUND SHALL
MAINTAIN A CATASTROPHE SURPLUS IN AN AMOUNT SUFFICIENT TO COVER
THE CATASTROPHIC HAZARDS ARISING FROM THE INSURANCE POLICIES
ISSUED BY THE FUND.

(2)(B) THE COMMISSIONERS SHALL MAINTAIN RESERVES IN
AN AMOUNT ADEQUATE TO MEET ANTICIPATED LOSSES AND CARRY ALL
CLAIMS AND POLICIES TO MATURITY.

(B) THE STATE INSURANCE COMMISSIONER MAY EXAMINE THE

ASSETS, LIABILITIES AND RESERVES OF THE STATE ACCIDENT FUND. IF,
IN THE COMMISSIONER'S OPINION, THE FUND'S ASSETS ARE NOT AT LEAST
EQUAL TO ALL LIABILITIES AND RESERVES, THE MINIMUM REQUIRED
SURPLUS AND FREE SURPLUS REQUIRED BY ARTICLE 48A OF THE CODE FOR
A NON-ASSESSABLE MUTUAL CASUALTY INSURER, OR THAT RESERVES ARE
NOT ADEQUATE TO MEET ANTICIPATED LOSSES OR CARRY POLICIES TO
MATURITY, OR THAT THE FUND'S FINANCIAL CONDITION IS SUCH AS TO
RENDER THE CONTINUANCE OF ITS BUSINESS HAZARDOUS TO THE PUBLIC OR
TO ITS POLICYHOLDERS, THE COMMISSIONER SHALL:

(1) NOTIFY THE CHAIRMAN OF THE COMMISSIONERS AND THE
MANAGER OF THE STATE ACCIDENT FUND;

(2) PROVIDE THE FUND WITH A LIST OF RECOMMENDED
COURSES OF ACTION.

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