02-031-440 Me. Code R. § II-16

Current through 2024-46, November 13, 2024

Section 031-440-II-16 - Accounting and Records

A. Adequate system required. There shall be established and maintained by the Pool an adequate accounting system applicable to member companies, servicing entities and the Pool recognizing income received and expenses to be administered by the Pool. Not less frequently than each quarter, servicing entities shall remit to the Plan manager any written premiums which exceed those paid expenses and losses which are properly chargeable to residual market risk policies. Such funds shall be remitted to the Plan manager within 45 days following the close of the quarter reported upon.

Funds so received by the Plan manager shall be invested and the principal and interest thereon shall be available for redistribution to servicing entities based upon a reasonable projection of their cash needs, which shall be substantiated and revised quarterly. The Board shall establish an investment policy in accordance with the prudent man standard, recognizing the Plan manager's fiduciary capacity with respect to such funds.

Funds in the possession of servicing entities shall be invested at an investment rate no less than the median yield for servicing carrier insurers and shall be credited to the account of the Pool in any period when a service carrier's residual market operating results produce a positive fund balance.

B. Right to inspect. The Board and/or any designated representative thereof shall have the right at all reasonable times to inspect the books, records and files of the servicing carrier so far as they pertain to the operations of the Plan, and shall have the right to copy or abstract such books, records and files at the Plan's expense.

If an additional claims examination is deemed necessary by the Board as a result of advice received from a general audit or examination such audit or examination shall be performed at the expense of the Pool. The servicing carrier shall bear all expenses of any state insurance department audit or examination.

02-031 C.M.R. ch. 440, § II-16