Assessment Recoupment Provision - Premium Tax Offset (33 1/3% / Year)

Assessment History
	Authorized but not Called - None
	Last Assessment - 2003
	Maximum Assessment -1% / Account
	Assessments Authorized for 2003 - All Workers' Compensation

Accounts
	Workers Compensation:
		Lines included - 16 and excess in 31
		2002 Premium in Account - $ 807,653,900
	Auto: 
		Lines included - 19.1, 19.2, 19.3, 19.4, 21.1, 21.2
		2002 Premium in Account - $  3,112,311,855
	All Other:

		Lines included - 1, 2.1, 2.2, 2.3, 3, 4, 5.1, 5.2, 9, 10, 11, 12, 17, 18, 22, 23, 26, 27
		2002 Premium in Account - $  2,715,718,256

Assessment Procedures

1.   Assessments are made by insolvency/by account. In other words, from this point in time forward it will be the practice of this association to identify assessments by Workers' Comp, Auto, and All Other for each insolvency for which funds are needed.

2.   An assessment was mailed November 16, 2001. It was for Reliance only and the breakdown was given by account. Member companies were assessed based on net direct written premium in the following manner. For Auto, 0.006; for Workers' Comp, 0.01; and for All Other, 0.01.

3.   It is estimated (and with a significant degree of confidence) that assessments in 2002 will be 0.01 for Workers' Comp account; and 0.01 for the All Other account. Obviously, this will not occur until after March 1, when the 2001 premium information will be available. It is foreseeable that the Workers' Comp assessment will be 0.01 for the next several years. This will depend largely on distributions from the receiver.

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