§435C-5  Participation.  All insurers
that are members of the plan shall participate in its expenses, profits, and
losses in the proportion that the net direct premiums of each such member
(excluding that portion of premiums attributable to the operation of the plan)
written during the preceding calendar year bears to the aggregate net direct
premiums written in this State by all members of the plan. Insurers that are
members of the plan may also be appointed by the insurance commissioner as
servicing companies to underwrite the medical malpractice insurance.  Each
insurer's participation in the plan shall be determined annually on the basis
of such net direct premiums written during the preceding calendar year, as
reported in the annual statements and other reports filed by the insurer with
the insurance commissioner.  No member shall be obligated in any one year to
reimburse the plan on account of its proportionate share in the deficit from
operations of the plan in that year in excess of one per cent of its
policyholders' surplus and the aggregate amount not so reimbursed shall be
reallocated among the remaining members in accordance with the method of
determining participation prescribed in this section after excluding from the
computation the total net direct premiums of all members not sharing in the
excess deficit.  In the event that the deficit from operations allocated to all
members of the plan in any calendar year shall exceed one per cent of their
respective policyholders' surplus, the amount of such deficit shall be
allocated to each member in accordance with the method of determining
participation prescribed in this section. [L 1975, c 161, pt of §1; am L 1998,
c 204, §3]