Ill. Admin. Code tit. 50, § 3301.40 - Credit Formula
a) The FAIR
Plan shall compute the gross participation for all companies as set forth in
their formula filed with and approved by the Director.
b) Beginning with calendar year 1981 and each
calendar year thereafter, companies shall report to the FAIR Plan on or before
April 1st of the following year residential property insurance written premiums
as follows:
1) All premiums written in CEA's
during the year for which the immediate previous writer was the FAIR
Plan.
2) All premiums written in
CEA's where the FAIR Plan's market penetration exceeds 15% as determined in
Section 3301.30(e)
including new and renewal business as defined in (f) below.
c) Beginning with calendar year
1981 and each calendar year thereafter, the FAIR Plan shall compute residential
property insurance written premiums written in CEA's by the FAIR Plan during
the calendar year. Such computation shall be made by April 1st of the
subsequent year.
d) Companies shall
receive credit on their participation as follows:
1) Credit for CEA voluntary written premiums
as reported in (b)(2) above and determined by the FAIR Plan shall be allowed
using the formula of 600% of Fire, Allied Lines and Homeowners written premiums
so reported.
2) Credit for CEA
voluntary written premium as determined in (d)(1) above shall be increased an
additional 600% for that portion in which the immediate previous writer was the
FAIR Plan.
3) A one time credit of
900% shall be allowed for voluntary written premiums on risks located in a CEA
where the immediate past writer was the FAIR Plan and the risk does not
otherwise qualify for credit under (d)(2) above.
e) The minimum level of net participation for
each company shall be 50% of its gross participation.
f) Only new policies on risks written on or
after January 1, 1981, or renewal policies which were first written by the
company claiming the credit on or after January 1, 1981, shall be considered
for any credit. A policy will not be considered a new policy for purposes of
claiming a credit if the immediate previous writer was a company affiliated
with the new company on the risk.
Notes
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