LEG00236

• Bill Number: SB83-15
• Year: 1983
• Title: Concerning Reservoirs and Relating to the Inspection and Regulation Thereof and the Provision of Liability Insurance Therefor and Making an Appropriation Therefor
• Legislation - Doc Type: Other CWCB Related Bills - Killed

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association and statistics relating thereto shall be subject

2 to part 4 of this article, giving due consideration to the
3 past and prospective loss and expense experience for reservoir
4 liability insurance written and to be written in this state,

5 any trends in the frequency and severity of losses, the

6 investment income of the association, and such other

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information as the commissioner may require.

The rates,

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rating plans,

rating rules, and rating classifications

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promulgated by the association shall give as much weight as
possible to reservoir liability experience within this state.
All rates shall be on an actuarially sound basis, giving due
cbnsideration to the group retrospective rating plan and the
stabilization reserve fund, and shall be calculated to be

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self-supporting.

The commissioner shall take all appropriate

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steps to make available to the association ~he loss and
~xpense experience of insurers previously writing reservoir
i~ability insurance in this state.
(3) All policies issued by the association shall be
subject to a nonprofit group retrospective rating plan, to be
ab~roved by the commissioner, under which the final premium
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for all policyholders of the association, as a group, will be

22 ~qual to the administrative expenses, loss and loss adjustment

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expenses, and taxes, plus a reasonable allowance for

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tontlngencies and
tu11 credit for all

servicing.

Policyholders shall be given

investment income, net expenses, and a

r~~sbnable management fee on policyholder-supplied funds.

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