Assessment Companies - Limit on Assessments

 State of Nebraska J. JAMES EXON Governor DEPARTMENT OF INSURANCE Lincoln 68509 M. BERRI BALKA Director December 19, 1978 CB-45 # BULLETIN ASSESSMENT COMPANIES - LIMIT ON ASSESSMENTS This bulletin is to notify all assessment companies of the limitations on assessments pursuant to §44-802 R.R.S. 1943. 1. Section 44-802 R.R.S. 1943 provides that assessments may be made "... for not more than 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 ..." 2. 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 than one year in advance. However, assessments for an amount more than that necessary for losses and expenses for one year will not be allowed in other instances. M. BERRI BALKA Director of Insurance