Common use of Assigned Risk Fund Clause in Contracts

Assigned Risk Fund. After the retentions under paragraph (3), the amount of the underwriting loss retained by the Company for the Assigned Risk Fund will be calculated within each State as the sum of the following: (i) For that portion of the underwriting loss amount for which the Company’s loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following: (I) Its retained net book premium; (II) The lesser of the Company’s actual loss ratio or 160 percent, minus 100 percent; and (III) 7.5 percent. (ii) For that portion of the underwriting loss amount for which the Company’s loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following: (I) Its retained net book premium; (II) The lesser of the Company’s actual loss ratio or 220 percent, minus 160 percent; and (III) 6.0 percent. (iii) For that portion of the underwriting loss amount for which the Company’s loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following: (I) Its retained net book premium; (II) The lesser of the Company’s actual loss ratio or 500 percent, minus 220 percent; and (III) 3.0 percent. (iv) FCIC will assume 100 percent of that portion of the underwriting loss amount for which the Company’s loss ratio exceeds 500 percent.

Assigned Risk Fund. After the retentions under paragraph (3), the amount of the underwriting loss retained by the Company for the Assigned Risk Fund will be calculated within each State as the sum of the following: (i) For that portion of the underwriting loss amount for which the Company’s loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following: (I) Its retained net book premium;premium;‌ (II) The lesser of the Company’s actual loss ratio or 160 percent, minus 100 percent; andand‌ (III) 7.5 percent.percent.‌ (ii) For that portion of the underwriting loss amount for which the Company’s loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following: (I) Its retained net book premium;premium;‌ (II) The lesser of the Company’s actual loss ratio or 220 percent, minus 160 percent; andand‌ (III) 6.0 percent. (iii) For that portion of the underwriting loss amount for which the Company’s loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following: (I) Its retained net book premium;premium;‌ (II) The lesser of the Company’s actual loss ratio or 500 percent, minus 220 percent; andand‌ (III) 3.0 percent. (iv) FCIC will assume 100 percent of that portion of the underwriting loss amount for which the Company’s loss ratio exceeds 500 percent.