MDOI 94-104 Prescribing Form of Certificate of Contribution

MDOI REG 94-104 (1994) MISSISSIPPI REGULATION NO. 94-104 PRESCRIBING FORM OF CERTIFICATE OF CONTRIBUTION FOR CERTAIN ASSESSMENTS PAID TO MISSISSIPPI LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION AND APPROVING FINANCIAL STATEMENT TREATMENT OF SUCH CERTIFICATE OF CONTRIBUTION

Section

1. Authority.

2. Purpose.

3. Definitions.

4. Form of Certificate of Contribution.

5. Financial Statement Treatment of Certificate of Contribution.

6. Severability.

7. Effective Date.

Section 1. Authority.

This Regulation is promulgated by the Commissioner of Insurance pursuant to the authority granted to him by Miss. Code Ann. §§ 83-5-1 and 83-23-217 (Rev. 1991), and is promulgated in accordance with Mississippi Insurance Department Regulation No. 88-101, said regulation being the Rules of Practice and Procedure before the Mississippi Insurance Department.

Section 2. Purpose.

The purpose of this Regulation is to prescribe the form of the certificate of contribution to be issued by the Mississippi Life and Health Insurance Guaranty Association to each member insurer paying a Class B assessment to the Mississippi Life and Health Insurance Guaranty Association and to approve the form and amount and period of time that a certificate of contribution may be shown as an admitted asset by the member insurer in its statutory financial statement.

Section 3. Definitions.

(a) "Class B assessment" shall mean assessments by the Mississippi Life and Health Insurance Guaranty Association made to the extent necessary to carry Out the powers and duties of the Mississippi Life and Health Insurance Guaranty Association under Miss. Code Ann. § 83-23-215 (Rev. 1991), with regard to an impaired or insolvent insurer.

(b) "Impaired insurer" shall have the same meaning as defined in Miss. Code Ann. § 83-9-209 (Rev. 1991).

(c) "Insolvent insurer" shall have the same meaning as defined in Miss. Code Ann. § 83-9-209 (Rev. 1991).

(d) "Member insurer" shall have the same meaning as defined in Mississippi Code Annotated Section 83-9-209.

Section 4. Form of Certificate of Contribution.

The Mississippi Life and Health Insurance Guaranty Association shall issue to each member insurer paying a Class B assessment to the Mississippi Life and Health Insurance Guaranty Association a certificate of contribution for the amount of the assessment so paid. Such certificate of contribution shall be in substantially the form attached hereto as Appendix A, which is hereby made a part of this Regulation.

Section 5. Financial Statement Treatment of Certificate of Contribution.

A certificate of contribution may be shown by a member insurer in its statutory financial statement as an admitted asset in such form and for such amount, if any, and period of time as the commissioner may by order approve, provided, that a member insurer shall in any event at its option have the right to show a certificate of contribution as an admitted asset at percentages of the amount assessed and paid for calendar years as follows:

(a) One hundred percent (100%) for the calendar year of issuance of the certificate of contribution;

(b) Eighty percent (80%) for the first calendar year after the year of issuance of the certificate of contribution;

(c) Sixty percent (60%) for the second calendar year after the year of issuance of the certificate of contribution;

(d) Forty percent (40%) for the third calendar year after the year of issuance of the certificate of contribution;

(e) Twenty percent (20%) for the fourth calendar year after the year of issuance of the certificate of contribution; and
(f) Zero percent (0%) for the fifth calendar year after the year of issuance of the certificate of contribution and thereafter.

Section 6. Severability.

If any provision of any section of this Regulation or the application thereof to any circumstance or person or entity is held invalid, such invalidity shall not affect any other provision of that section or application of the Regulation which can be given effect without the invalid provision or application, and to this end the provisions of this Regulation are declared to be severable.

Section 7. Effective Date.

This Regulation shall become effective December 31, 1994.

GEORGE DALE
COMMISSIONER OF INSURANCE
MISSISSIPPI DEPARTMENT OF INSURANCE

APPENDIX A Mississippi Life and Health Insurance Guaranty Association Post Office Box 4562 Jackson, Mississippi 39296 ASSESSMENT NOTICE AND CERTIFICATE OF CONTRIBUTION

[Date]

Name
Address
City, State Zip Code

ASSESSMENT SUMMARY [Name of Impaired                     Class B-Life             $_____________
or Insolvent Insurer]                       Annuity             _____________
                                            Unallocated Annuity _____________
                                            Health              _____________

The NET AMOUNT DUE $_____________

CERTIFICATE OF CONTRIBUTION WHEN PAID IN FULL, THIS ASSESSMENT NOTICE TOGETHER WITH YOUR CANCELED CHECK WILL SERVE AS YOUR CERTIFICATE OF CONTRIBUTION.

A copy of this notice and your check, payable to:

MISSISSIPPI LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION should be mailed to the above address within 30 days of this notice. Delinquencies accrue interest at twelve percent (12%) per annum. Delinquencies are reportable to the Mississippi Commissioner of Insurance who may impose penalties.

A member insurer may offset against its (premium, franchise or income) tax liability (or liabilities) to the State of Mississippi a Class B assessment to the extent allowed by Miss. Code Ann. Section 83-23-218 (Rev. 1991).