California Insurance Code

§ 1063.14

INS § 1063.14 Effective Jan 1, 2023Div. 1 · Part 2 · Ch. 1 · Art. 14.2

Statute text

(a)(1) The plan of operation adopted pursuant to subdivision (c) of Section 1063 shall contain provisions whereby each member insurer is required to recoup, in the year following the premium charge, a sum calculated to recoup the premium charge paid by the member insurer under this article by way of a surcharge on premiums charged for insurance policies to which this article applies.

(2)Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax or agents’ commission.

(b)The plan of operation adopted pursuant to subdivision (c) of Section 1063 shall contain a provision requiring a member insurer to recoup the premium charge amount, as determined by the association, through a surcharge on premiums charged for insurance policies to which this article applies, even if a premium charge was not yet paid to the association because the member insurer had no direct written premium for insurance policies to which this article applies for the prior year. All surcharges collected in this manner shall be remitted to the association within 60 days of the end of the calendar year in which the surcharge is collected.

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Legislative history

Amended by Stats. 2022, Ch. 408, Sec. 4. (AB 2154) Effective January 1, 2023.