A deficit sustained by the association in a year must be recouped, pursuant to the plan of operation and the rating plan then in effect, by one or both of the following procedures:
(1) an assessment upon the policyholders, which may not exceed one additional annual premium at the then current rate;
(2) a rate increase applicable prospectively.
HISTORY: 1989 Act No. 189, Part II, Section 43 sub 25; 1993 Act No. 181, Section 845.
Structure South Carolina Code of Laws
Chapter 89 - Day Care Joint Underwriting Association
Section 38-89-10. Definitions.
Section 38-89-20. Joint underwriting association created; purpose; when activated.
Section 38-89-30. General powers.
Section 38-89-40. Plan of operation.
Section 38-89-50. Application for coverage; issuance of policy.
Section 38-89-60. Duty of director to gather statistical data.
Section 38-89-80. Filing of policy forms, classifications, rates, rating plans, and rating rules.
Section 38-89-90. Policy forms; rate structure.
Section 38-89-100. Rate increase subject to director's approval.
Section 38-89-110. Deficit to be recouped.
Section 38-89-120. Basis for rates; insufficient funds for operation.
Section 38-89-130. Participation of association members.
Section 38-89-140. Plan of operation and rules binding on association members.
Section 38-89-150. Effect of termination of association member's authority; merger; insolvency.
Section 38-89-160. Board of directors.
Section 38-89-170. Appeal to commission.
Section 38-89-180. Statement to be filed by association.
Section 38-89-190. Examination of financial condition; annual report.