§435C-5  Participation.  All insurersthat are members of the plan shall participate in its expenses, profits, andlosses 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 directpremiums written in this State by all members of the plan. Insurers that aremembers of the plan may also be appointed by the insurance commissioner asservicing companies to underwrite the medical malpractice insurance.  Eachinsurer's participation in the plan shall be determined annually on the basisof such net direct premiums written during the preceding calendar year, asreported in the annual statements and other reports filed by the insurer withthe insurance commissioner.  No member shall be obligated in any one year toreimburse the plan on account of its proportionate share in the deficit fromoperations of the plan in that year in excess of one per cent of itspolicyholders' surplus and the aggregate amount not so reimbursed shall bereallocated among the remaining members in accordance with the method ofdetermining participation prescribed in this section after excluding from thecomputation the total net direct premiums of all members not sharing in theexcess deficit.  In the event that the deficit from operations allocated to allmembers of the plan in any calendar year shall exceed one per cent of theirrespective policyholders' surplus, the amount of such deficit shall beallocated to each member in accordance with the method of determiningparticipation prescribed in this section. [L 1975, c 161, pt of §1; am L 1998,c 204, §3]