Fiscal Policies / Liability Coverage Fund Replenishment Policy
In the event that accumulated expenses (legal fees, claims administration, settlements, etc.) or catastrophic losses were to result in a significant shortfall or depletion of a given fund's equity, in the Liability Coverage Fund, reimbursement to the fund would be made on the following basis:
1. Assuming a shortfall of less than $50,000, the reimbursement be immediate.
2. Assuming a shortfall between $50,000 and $250,000, then the reimbursement will be at a minimum rate of $50,000 per year over no more than five years.
3. If the shortfall exceeds $250,000, the reimbursement should be 9financed to reimburse the Liability Coverage Fund immediately. The repayment term on the financing will not exceed fifteen years.
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