Office of Insurance Regulation re FIGA Assessment Recoupement 6/30/06

Jan 12, 2007

We have been advised that the Office of Insurance Regulation (OIR) plans to issue a directive in the next few days regarding recoupment of the FIGA Assessment. Informally, OIR has advised us that it plans to administer the FIGA assessment in a very similar manner as the Citizen’s assessments. Insurers will be required to use I-File to recoup the assessment, and OIR has advised us that that no insurer should file for the recoupment until the assessment has been paid. The filing will require a “proof of payment.” Although commercial insurers do not currently use I-File, commercial insurers will be required to use the form located on I-File as well. We will notify you of the formal directive on this matter when it is published.

Regards,

Fred Karlinsky