§ 50.32. Entities that share profits and losses with private sector insurers.
100 words·~1 min read·
/us/cfr/t31/s§ 50.32·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Treatment. A State residual market insurance entity or a State workers' compensation fund that shares profits and losses with a private sector insurer is deemed not to be a separate insurer under the Program.
(b)Premium and loss calculation. A state residual market insurance entity or a State workers' compensation fund that is deemed not to be a separate insurer should continue to report, in accordance with normal business practices, to each participant insurer its share of premium income and insured losses, which shall then be included respectively in the participant insurer's direct earned premium or insured loss calculations.