LD 933
pg. 27
Page 26 of 38 PUBLIC Law Chapter 346 Page 28 of 38
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LR 2060
Item 1

 
A. Class A assessments shall be made for the purpose of
meeting administrative costs and other general expenses not
related to a particular impaired insurer.

 
B. Class B assessments shall be made to the extent
necessary to carry out the powers and duties of the
association under section 4608 with regard to an impaired
domestic insurer.

 
C. Class C assessments shall be made to the extent
necessary to carry out the powers and duties of the
association under section 4608 with regard to an impaired
foreign or alien insurer.

 
D. To the extent that the maximum 2% has not been assessed,
an assessment of up to that member's proportionate share of
the applicable maximum as set forth in this paragraph shall
be assessed when immediately necessary for the payment of
claims and expenses. Payment of this assessment shall be
assured by one of the means set forth in this paragraph.
Any amount drawn by the association under any line of credit
shall be considered a payment toward the member insurer's
obligation provided for in this paragraph. The maximum line
of credit or preinsolvency assessment for each account shall
be as follows:

 
AccountMaximum

 
Life$1,400,000

 
Health$1,500,000

 
Annuity$500,000

 
(1) The association shall obtain a line of credit for the
benefit of each account, in an amount not to exceed the
applicable maximum to ensure the immediate availability of funds
for purposes of future claims and expenses attributable to an
insurer insolvency in that account. That line of credit shall be
obtained from a qualified financial institution. At no time may
a qualified financial institution participate in a line of credit
in excess of 20% of its equity capital. The line of credit shall
provide for a 30-day notice of termination or nonrenewal to the
superintendent and the association and shall provide funding to
the association within one business day of receipt of notice from
the superintendent of an impaired insurer in that account as
defined in section 4605. Each member insurer upon notice from
the association shall make immediate payment for its
proportionate share of the amount borrowed based on the premium
for the


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