Bulletin 2007-17 Termination of the SC Reinsurance Facility Outstanding Salvage and Subrogation...

TO: FROM: DATE: SUBJECT: South Carolina Department of Insurance Capital Centu 1201 Main St., Suite 1000 Columbia, South Carolina 29201 Mailing Address: 1'.0. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6193 BULLETIN 2007-17 All Automobile Insurers Participating in the South Carolina Reinsurance Facility Scott H. Richardson, CPCU "'4,.J ~ Director ~~ December 19, 2007 Termination of the South Carolina Reinsurance Facility Outstanding Salvage and Subrogation Receivables MARK SANFORD Governo1· SCOTT RICHARSON Director of Insurance In accordance with the provisions as outlined under South Carolina Code Ann. Section 38-77-510, the South Carolina Reinsurance Facility is scheduled to terminate effective January 1, 2010. Consequently, to ensure the termination is completed on time, the South Carolina Department of Insurance is hereby directing insurers to take steps immediately to identify all outstanding receivables, specifically salvage and subrogation, so that an appropriate timeframe to terminate the recoupment surcharge can be determined. Therefore, your company is hereby directed to: review all files of your company's business ceded to the South Carolina Reinsurance Facility including those from closed policy years, and identify all outstanding salvage and subrogation receivables due SCRF. provide the attached completed report form no later than January 31, 2008, indicating the policy number, the amount of the outstanding receivable, and the anticipated final receipt date of the outstanding receivable. This reporting form may be duplicated. If you submit multiple pages, please number each page sequentially. The statement that the receivables outstanding are accurate as of the date of the report must be signed and certified by an officer or the CFO of your company. IF YOUR COMPANY DOES NOT HAVE ANY OUTSTANDING SALVAGE AND SUBROGATION RECEIVABLES, YOUR REPORT MUST INDICATE "NOTHING IS OUTSTANDING." A REPORT MUST BE RECEIVED FROM EACH COMPANY. AGAIN, THIS REPORT IS DUE NO LATER THAN JANUARY 31, 2008. The report should be sent to: Mr. Thomas J. Assad, Jr., Manager South Carolina Reinsurance Facility 302 Central Avenue Johnston, Rl 02919 Should you have any questions about this reporting requirement, please contact one of the following individuals: Thomas Assad, Manager David Amaral Jo-Ann Eunson Anna Taretaeta (401) 528-1311 (401) 528-1314 (401) 528-1373 (401) 946-2310 (Ext. 3352) As claim files are being reviewed, you are encouraged to review loss reserves for appropriateness and case base loss reserves submitted with the quarterly summary control report to SCRF. In addition, if your company has not submitted collected receivables (Salvage or Subrogation, Earned Premium, or negative claim transactions) from closed policy years to SCRF, contact SCRF for instructions on how to submit the collected receivables. Page 2 Name of company SOUTH CAROLINA REINSURANCE FACILITY SALVAGE AND SUBROGATION REPORTING FORM ----------------------------------------------------------------- Policy Number Salvage Subrogation Amount of Anticipated Final Amount of Outstanding Receipt Date of Outstanding Receivable Receivable Receivable I hereby certify that the information provided above for outstanding SCRF salvage and subrogation receivables for all policy years, including closed policy years, is accurate as of Date Signature of Officer or CFO Title Print Name, Title and Telephone Number Anticipated Final Receipt Date of Receivable