SUBJECT: ASSESSMENT COMPANIES - LIMIT ON ASSESSMENTS
DATE: December 19, 1978
This bulletin is to notify all assessment companies of the limitations on assessments pursuant to §44-802 R.R.S. 1943.
- Section 44-802 R.R.S. 1943 provides that assessments may be made "... for not more that one year in advance in accordance
with the amount estimated by the board of directors to be necessary to meet the losses and expenses of the association for
such period ..."
- If an assessment association maintains the same reserves, surplus and contingency funds as required of a stock or
mutual company writing the same kinds of insurance, then it may make assessments for more that one year in advance. However,
assessments for an amount more that that necessary for losses and expenses for one year will not be allowed in other instances.
M. Berri Balka
DIRECTOR OF INSURANCE