Part 1 — Licensing of Insurers and Reciprocal Insurance Exchanges Subpart 1 Licensing of Insurers Insurer's Duty to be Licensed
100 Guarantee fund
every reciprocal insurance exchange must maintain a guarantee
fund in cash, approved securities or other prescribed assets in an
amount calculated in accordance with the following formula:
(A - B - C - D) + E
where
A is all liabilities associated with the operation of the
exchange, including liabilities under reciprocal contracts
undertaken by the exchange;
B is any amount that is recove rable from licensed insurers that
have reinsured reciprocal contracts referred to in the
description of A;
C is any amount that is recoverable from unlicensed reinsurers
that have, with the prior approval of the Minister, reinsured
reciprocal contracts referred to in the description of A;
D is all unearned premiums;
E is an amount set out in the regulations.
(2) Cash, approved securities or other prescribed assets maintained
in the reserve fund referred to in section 99 must not be included in
the guarantee fund.
RSA 2000 cI-3 s100;2013 c18 s7;2016 c23 s3