Alaska Fund Administrator E. Dane Havard, CPCU www.nadj.com

Assessment Recoupment Provision - Rates & Premiums

Assessment History: 
	Authorized but not Called - None
	Last Assessment - December 2003 for 2004
	Maximum Assessment - 2% / Account
Assessments Authorized for 2003 - 
	$4,245,586 (2.0%) for Worker’s Comp
		 Surcharge period – Sept 1, 2003 through Aug 31, 2004 – 2.0% 
	$1,948,314 (.5%) for All Other
		Surcharge period – Jan 1, 2004 through Dec 31, 2004 - 0.5%
Assessments Authorized for 2004:
	 $4,245,586 (2.0%) for Worker’s Comp (based on latest available annual statements – 2002 data)
 		Surcharge period – Jan 1, 2004 through Dec 31, 2004 – 2.0%

5 Year Assessment History (click here)

Summary of Outstanding Reserves (9/30/03) (click here)

Plan of Operations (Rev. July 2003) (click here)

Accounts
	Workers Compensation 
		Lines included - 16
		2002 Premium in Account - $ 212,279,281
	Auto 
		Lines included - 19.1, 19.2, 19.3, 19.4, 21.1, 21.2
		2002 Premium in Account - $ 375,912,760
	All Other 
		Lines included -  1 ,2.1, 2.2, 3, 4, 5.1, 5.2, 8, 9, 11, 12, 17.1, 17.2, 18.1, 18.2, 
				22, 26, 27, 29, 30, 31, 32
		2002 Premium in Account - $ 389,765,239

Assessment Procedures

New Act effective July 1, 2002.

The 2002 Act calls for an INITIAL assessment by statutory account based on the net direct written premium “for the last year for which annual statements have been filed on the kinds of insurance in the account.”  The initial assessment “shall be adjusted by applying the same uniform percentage as initially used…for the calendar year following the year in which the initial assessment was issued.” (AS 21.80.060 (a)(3)(A)) 

The rates and premiums charged for insurance policies to which this chapter applies may include surcharge rates sufficient to offset the adjusted assessments…”  “The amount charged on a policy shall be shown separate from the premium for coverage on the policy.”  (AS21.80.140)

Board meetings are usually held on the last Friday of June to consider financial needs.  However, assessments are generally scheduled for November unless needed earlier in the year.

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