The following provides the Temporary Services Insurance Ltd. membership with a summary of certain important policies and procedures as they relate to your financial obligations. It's important to note when the obligations are required to be in place to retain membership in good standing. This summary is subject to change.
A. Premium Installments
- 1st Installment due to broker by January 1st
- 2nd Installment due to broker by April 1st
- 3rd Installment due to broker by July 1st
- 4th Installment due to broker by October 1st
*Failure to pay premiums would result in cancellation of coverage.
B. Security Collateral Requirement (either cash or letter of credit)
- 2/3rds of A Fund Yr. 1
- 2/3rds of A Fund Yr. 2
- 2/3rds of A Fund Yr. 3
- Maximum 2A for the three most recent underwriting years. Will be adjusted annually up or down after participation in 3 complete underwriting years.
- Letter of Credit (or cash) is required to be in place within 60 days of inception date for New Members.
- Letter of Credit (or cash) is required to be in place within 60 days of renewal date for all Members.
C. Experience Adjustment (i.e., A Fund Premium Assessment Billing):
|Quarterly Billing Dates||Based on Financial Statement Dates|
|February 1st||June 30th|
|May 1st||December 31st|
|August 1st||December 31st|
|November 1st||June 30th|
All Members must be compliant with all financial requirements or they would be subject to non-renewal the following year. Each member’s situation is reviewed to determine if a notice is warranted. Judgment by the Executive Committee for recommending non-renewal of a member will be based upon the frequency and degree of non-compliance with all of the financial obligations as outlined above.
E. Financial Watch List Factors
- Failure to provide updated financial statements annually to Temporary Services Insurance Ltd.'s independent consultant.
- Failure to comply with letter of credit requirements.
- Consistently late in premium assessment payments.
- Drop below acceptable ratios as determined by Temporary Services Insurance Ltd.'s independent financial consultant.
- Member subject to bankruptcy proceedings.
The member will be notified of its inclusion on the financial watch list and the criteria used to make that determination. Members on the financial watch list are required to provide updated financial information on a quarterly basis to the independent consultant. Failure to take corrective action in a reasonable time period will result in the member being subject to non-renewal.