After the initial year of operation, rates, rating plans, and rating rules, and any provision for recoupment through policyholder assessment or premium rate increase must be based upon the association's loss and expense experience and investment income, together with any other information based upon this experience and income as the director or his designee considers appropriate. The resultant premium rates must be on an actuarially sound basis and must be calculated to be self-supporting.
If sufficient funds are not available for the sound financial operation of the association, pending recoupment as provided in Section 38-81-320, all members, on a temporary basis, shall contribute to the financial requirements of the association in the manner provided for in Section 38-81-340. Any such contribution must be reimbursed to the members following recoupment as provided in Section 38-81-320.
HISTORY: 1988 Act No. 360, Section 13; 1993 Act No. 181, Section 832.
Structure South Carolina Code of Laws
Chapter 81 - Legal Malpractice Insurance
Section 38-81-220. Definitions.
Section 38-81-230. Joint underwriting association created.
Section 38-81-240. Powers of association.
Section 38-81-250. Plan of operation.
Section 38-81-260. Legal professional liability insurance coverage by association.
Section 38-81-270. Gathering of data.
Section 38-81-280. Structuring rates.
Section 38-81-290. Filing of forms.
Section 38-81-300. Specification of coverage basis.
Section 38-81-310. Rate increases or assessments.
Section 38-81-320. Recoupment of deficits.
Section 38-81-330. Change in premium rates after initial year of operation.
Section 38-81-340. Participation of insurers.
Section 38-81-350. Members bound by approved plan.
Section 38-81-360. Continuation of obligations.
Section 38-81-370. Board of directors.