Section 908.10  Application and Effective Date

 

This Part applies to all domestic companies transacting any kind or kinds of business specified under Classes 2 and 3 of Section 4 of the Illinois Insurance Code.

 

Section 908.20  Recording of Premiums Collected

 

a)         From and after the effective date of this Part, all receipts from premium collections entered on each company's records must be identifiable to a definite individual policy, endorsement, rider or other amendment, to indicate the allocation of the collection to an individual insured.

 

b)         Listings, cards or other data must be maintained clearly identifying the individual policyholder on all accounts covering uncollected premiums or agents' balances, and the total of these subsidiary ledger records must balance to the general ledger uncollected premium (agents' balances) control account.  Detail shown on these subsidiary accounts must include individual policy numbers, net due per policy and the effective date written.

 

c)         In computing over 90 day balances, the actual effective date of the policy, endorsement, rider or other amendment developing the premium charge shall govern.  If any installment of any premium has been due and unpaid for more than ninety days at the date of determination, no unpaid installment of such premium shall be allowed as an admitted asset.

 

Section 908.30  "Gross Premiums" Defined

 

For the purpose of computing or calculating the unearned premium reserve under section 393.1 of the Illinois Insurance Code, the term "Gross Premium" in any particular case is defined as the total amount charged the insured, excluding only the following:

 

a)         policy and/or membership fees, when these charges appear as separate amounts on the policy and are authorized under the company's approved rate filing; and

 

b)         taxes where the Company acts only as a collection agency and the amounts collected clearly appear as separate charges on the policy.