The Accounting & Statistical Manual - Facility … · 2017-12-01 · Facility Association...

Accounting & Statistical Manual

(Revised December 1, 2017)

Facility Association Accounting & Statistical Manual Table of Contents - 3

Table of Contents

INTRODUCTION ............................................................................................................. 1

FACILITY ASSOCIATION RESIDUAL MARKET .................................................... 2

Overview – Facility Association Residual Market ......................................................... 3

Chapter 1 General Description of Data Processing, Accounting and

Reporting Responsibilities ........................................................................... 5

1.1 Facility Association ........................................................................................ 5

1.2 Servicing Carriers ........................................................................................... 5

1.3 All Facility Association Members .................................................................. 6

Chapter 2 Servicing Carrier-Agent/Broker-Policyholder Accounting ...................... 8

2.1 Responsibilities for Premium - Monthly Premium Payment Plan

Where Legislated ............................................................................................ 9

2.2 Collection of Accounts Receivable .............................................................. 10

Chapter 3 Accounting Procedures for Servicing Carriers ........................................ 12

3.1 Accounting Records ...................................................................................... 12

3.2 General Ledger ............................................................................................. 12

3.3 Bank Account(s) ........................................................................................... 13

3.4 Operation of Bank Account(s) ...................................................................... 14

3.5 Use of Books of Record ................................................................................ 15

3.6 Supporting Documentation for Books of Record ......................................... 16

3.7 Documents for Disbursements ...................................................................... 17

3.8 Allocated Claims Expenses Optional Procedure .......................................... 17

3.9 Submission of Accounting Reports .............................................................. 18

3.10 Outstanding Cheques and Drafts .................................................................. 21

3.11 General Ledger Analysis .............................................................................. 22

3.12 Audit ............................................................................................................. 22

3.13 Retention of Records .................................................................................... 22

3.14 Advancement of funds by the Servicing Carrier to the Facility

Association ................................................................................................... 23

3.15 Monthly Reconciliation Report .................................................................... 23

3.16 Reconciliation between sub-ledger and general ledger balances for

Accounts Receivable .................................................................................... 23

3.17 Write-off of Accounts Receivable ..................................................................... 23

Chapter 4 Accounting Procedures for Facility Association Central Office ............ 25

4.1 General .......................................................................................................... 25

4.2 Books of Original Entry ................................................................................ 25

PART I - Chapter 2 Page | 2

4.3 Contents of Books of Original Entry ............................................................ 25

4.4 Bank Accounts .............................................................................................. 26

4.5 Cash Flow ..................................................................................................... 26

4.6 Use of Cash ................................................................................................... 26

4.7 Preparation of Financial Statements ............................................................. 27

4.8 Reconciliation of the Servicing Carriers' trial balance to their

statistical reporting ........................................................................................ 28

Chapter 5 Servicing Carriers' Statistical Data .......................................................... 29

5.1 Submission of Statistical Data ...................................................................... 29

5.2 Correction and Resubmission of Invalid Statistical Data ............................. 29

5.3 Other Reports to Statistical Agency ............................................................. 29

Chapter 6 Members' Participation in Facility Association Residual Market

Results .......................................................................................................... 30

6.1 Calculation of Members' Share of Facility Association Residual

Market (FARM) Results ............................................................................... 30

6.2 Participation Report ...................................................................................... 30

6.3 Government Line Report .............................................................................. 31

6.4 Assessment/Distribution of Funds ................................................................ 31

Chapter 7 Servicing Carrier Claims Expense Allowance - Retroactive

Adjustment .................................................................................................. 33

7.1 Introduction ................................................................................................... 33

7.2 Basis for Calculation of Loss Ratio .............................................................. 33

7.3 Frequency of Adjustment ............................................................................. 33

7.4 Calculation of Adjustment Amount .............................................................. 34

7.5 Legal and Professional Fees ......................................................................... 35

RISK SHARING POOLS ............................................................................................... 36

Overview – Risk Sharing Pools ...................................................................................... 37

Chapter 8 General Description of Data Processing, Accounting and

Reporting Responsibilities ......................................................................... 39

8.1 Facility Association ...................................................................................... 39

8.2 All Facility Association Members ................................................................ 39

Chapter 9 Members’ Sharing in Risk Sharing Pools’ Results.................................. 41

9.1 Calculation of Members’ Share of Risk Sharing Pools’ Results .................. 41

9.2 Operational Report ........................................................................................ 41

9.3 Government Line Report .............................................................................. 43

9.4 The Management Information Report .......................................................... 44

Chapter 10 Miscellaneous ............................................................................................. 47

PART I - Chapter 2 Page | 3

10.1 Retention of Records .................................................................................... 47

10.2 Special Remittance ....................................................................................... 47

10.3 Risk Sharing Pools Expense Allowance ....................................................... 48

UNINSURED AUTOMOBILE FUNDS ........................................................................ 49

Overview – Uninsured Automobile Funds .................................................................... 50

Chapter 11 General Description of Data Processing, Accounting & Reporting

Responsibilities ............................................................................................ 51

11.1 Facility Association ...................................................................................... 51

11.2 All Facility Association Members ................................................................ 51

Chapter 12 Members’ Participation in Uninsured Automobile Funds’ Results ...... 52

12.1 Calculation of Members’ Share of Uninsured Automobile Funds’

Results ........................................................................................................... 52

12.2 Member Participation Statement .................................................................. 52

Resources available to Servicing Carriers and Members ............................................ 54

EXHIBITS ...................................................................................................................... 55

Facility Association Accounting & Statistical Manual Introduction

Revised: October 17, 2014

Page 1

INTRODUCTION

The Facility Association (“FA”) is an unincorporated, non-profit association created on June 28,

1977. It has since become a recognized entity under the provisions of Section 7 of the Ontario

Compulsory Automobile Insurance Act, and also recognized by provisions of legislation in each

of the other provinces and territories in which it operates.

The principal objective of the Facility Association is to ensure the availability of automobile

insurance for owners and licensed drivers of motor vehicles who may otherwise have difficulty

obtaining such insurance. To achieve this goal, the Facility Association under the leadership of

its Board of Directors (“the Board”) manages and accounts for the operations of certain

insurance pooling mechanisms on behalf of participating member insurance companies.

Facility Association

Risk Sharing Pools

(RSPs)

Residual Market

(FARM)

Uninsured

Automobile Funds

(UAFs)

Within each of the jurisdictions where the Facility Association operates, every insurer licensed to

write direct automobile liability insurance is a member of the Facility Association.

The Facility Association generates no revenue on its own and has no right to the insurance-

related revenue generated by the insurance pools. It also has no liability for the claims-related

expenses incurred by these pools. All of the Facility Association’s expenses are recovered fully

from its members, and any profit or loss realized on any of the business included in any of the

Facility Association’s insurance pooling mechanisms is allocated to members.

Facility Association Accounting & Statistical Manual Part I FARM


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PART I

FACILITY ASSOCIATION RESIDUAL MARKET

Facility Association Accounting & Statistical Manual Part I FARM - Overview


Page 3

Overview – Facility Association Residual Market

The Facility Association Residual Market Segment (“FARM”) provides a residual automobile

insurance market for owners and operators of motor vehicles required by law to have insurance

who may otherwise have difficulty obtaining such insurance, in the following provinces and

territories: Alberta (“AB”), Ontario (“ON”), Nova Scotia (“NS”), Prince Edward Island (“PE”),

New Brunswick (“NB”), Newfoundland and Labrador (“NL”), Yukon (“YT”), Northwest

Territories (“NT”), Nunavut (“NU”).

Legislation enabling operations of the FARM came into effect as follows:

in Alberta on October 1, 1979 under The Alberta Insurance Act;

in Ontario on December 1, 1979 under An Act to Provide for Compulsory Automobile

Insurance;

in Nova Scotia on July 1, 1981 under The Nova Scotia Insurance Act;

in Prince Edward Island on September 1, 1982 under The Prince Edward Island

Insurance Act;

in New Brunswick on July 1, 1983 under The New Brunswick Insurance Act;

in Newfoundland and Labrador on November 1, 1985 under The Newfoundland

Insurance Act;

in the Yukon on April 30, 1986 under The Insurance Act of the Yukon;

in the Northwest Territories on December 1, 1986 under The Northwest Territories

Insurance Act; and

in Nunavut on April 1, 1999 under The Nunavut Insurance Act.

Risks are not permitted to be underwritten by the FARM unless they qualify as a residual market

risk as defined in the Plan of Operation. All underwriting and claims settlement are conducted

by a small number of members designated as servicing carriers. The servicing carrier who issues

the initial policy remains responsible for servicing the policy, including any settlement of claims

http://www.facilityassociation.com/docs/planoperation/0000%20PoP%20-%20Complete%20Document%20amendments%20effective%20December%201%202017.pdf

Facility Association Accounting & Statistical Manual Part I FARM - Overview


Page 4

that may arise from the policy. Servicing carriers are compensated through operating fees, in

respect of their underwriting and general administrative services and claims servicing fees.

Facility Association Accounting & Statistical Manual Part I FARM - Chapter 1

Revised: July 28, 2017

Page 5

Chapter 1 General Description of Data Processing,

Accounting and Reporting Responsibilities

1.1 Facility Association

The Facility Association Residual Market (“FARM”) is managed by the Facility

Association. The following outlines the data processing, accounting and reporting

responsibilities of the Facility Association in managing the FARM:

1. Administer bank accounts for the FARM

2. Manage cash flow and transfer of funds with members

3. Generate monthly Participation Report and Government Line Report for

members

4. Report participation experience monthly and update share ratio of the members

annually

5. Maintain necessary controls, books, ledgers

6. Prepare draft monthly and year-end audited Financial Statements

7. Support the preparation of year-end Appointed Actuary’s Report

8. Manage excess funds that are not required to meet Facility Association’s short

term cash flow needs

9. Conduct audits of Servicing Carriers

10. Monitor the effectiveness of internal control procedures

11. Perform valuations and projections

12. Manage risks associated with data processing, accounting and reporting

1.2 Servicing Carriers

Servicing Carriers are member companies of the Facility Association who are authorized

to manage policies and adjudicate claims for the account of the Facility Association.

Servicing Carriers so designated must meet the eligibility requirements for Servicing

Carriers as laid out in the Plan of Operation. Facility Association policies written by the




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Servicing Carriers are subject to the rules, rates and classification of the Facility

Association. Servicing Carriers receive compensation for their services are reimbursed

for indemnity claims payments, and for certain legal and claims adjusting expenses

(please see the FARM Claims Guides for details). The Facility Association

communicates on any Servicing Carriers’ related matters via bulletins designated with the

prefix “SC” and “PJM” (Project Manager Bulletins).

As addressed in the Servicing Carrier agreement (Exhibit 1-A), the following outlines

with respect to the data processing, accounting and reporting responsibilities of the

Servicing Carrier:

1. Provide quality service to Association insureds and appointed agents/brokers.

2. Bill policy holders on a timely basis for premiums.

3. Collect premiums when due.

4. Disburse funds when due.

5. Handle claim transactions including claim payments, recording provisions for

outstanding claims, collecting subrogation/salvage recoveries.

6. Handle intermediary compensation efficiently.

7. Code and prepare data processing input for necessary transactions.

8. Maintain all necessary controls, books, ledgers and data sets as required.

9. Prepare necessary monthly and annual accounting and data processing reports.

1.3 All Facility Association Members

Every insurer licensed to write direct automobile liability insurance in any jurisdiction in

which the Facility Association operates shall become a member by operation of law.

The Facility Association communicates with members via bulletins designated with the

prefix “F” that are also posted on the Facility Association’s website.

The following outlines the responsibilities of the members:

1. Record in their books their share of allocated participation experience as direct

business.

http://www.facilityassociation.com/manuclaimsguide-farm.asp



Page 7

2. Pay premium taxes, health levies, Bureau and other association expenses as

required.

3. Receive their share of the FARM policyholder reserve-related funds. Reserve-

related funds are the funds not required to be held by Facility Association to meet

its current cash flow needs and therefore transferred to members. These represent

the remaining written premium dollars not yet required to be paid out for paid

claims and general expenses.

4. Return FARM policyholder reserve-related funds to pay the policyholder claims

when due and requested by Facility Association.

5. Accurate transmission of data



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Chapter 2 Servicing Carrier-Agent/Broker-Policyholder

Accounting

Note: The rules within the text boxes shown on pages 8 – 10 will be removed from the

Accounting & Statistical Manual immediately following its inclusion within the

Rules & Rates Manual and thereafter it will be incorporated within the

Accounting & Statistical Manual by reference only (to the Rules & Rates Manual).

If a policy change on an agency/broker bill policy involves a return premium, the

agent/broker (or, in the case of "direct billing", the Servicing Carrier) is responsible for the

prompt dispatch of the gross refund to the Policyholder or to the finance company if a

premium finance contract is in existence.

Direct Billing

The renewal documents must not be released by the Servicing Carrier until the full

premium is received or the required first payment is received on time by the Servicing

Carrier (by first payment due date if a deferred premium payment plan is available). If this

rule is followed, neither the Carrier nor the agent/broker incurs any responsibility for the

premium.

If the Servicing Carrier follows any other unauthorized procedure, the Servicing Carrier

will be responsible for an earned premium for the time on risk calculated on a pro-rata

basis and will be required to stop offering a Direct Bill option.

If cancellation of a policy is requested by or on behalf of the Policyholder, the

agent/broker or, in the case of direct billing, the Servicing Carrier is responsible for the

prompt dispatch of the gross refund.


Revised: December 1, 2017

Page 9

2.1 Responsibilities for Premium - Monthly Premium Payment Plan Where

Legislated

General Information

1. The finance charge will be retained by Servicing Carriers as an offset to processing

expenses. Servicing Carriers are responsible for bad debts associated with the

uncollected premium related to Monthly Payment Plan, and therefore will not be

reimbursed for these costs. Any NSF charged will be retained by the Servicing Carrier.

2. It should be noted that the Service Fee (ON only) is earned on a pro-rata basis over the

term of the policy, and that any commission caps are also pro-rated over the term of the

policy.

3. The Service Fee (ON only), which forms part of the monthly premium debit, shall be

shown on the statement of agency/brokerage account and is payable to the agent/broker

within 30 days of the close of the account month.

4. The policyholder should be given prior notice of any change to be made to the

originally determined bank withdrawal amount.

5. Only those fees for service as specified in the Rules and Rates Manual may be charged.

No additional fees for service may be levied by the agent/broker.

If cancellation of a policy is requested by the agent/broker due to inability to collect the

full policy/renewal premium or a subsequent additional premium, the agent/broker will be

responsible for the time-on-risk charge which will be pro-rata of the full premium.

If, in respect of policies for which the premiums are to be paid direct to the Servicing

Carrier, the Carrier initiates a policy cancellation for the reasons stated in paragraph b. or

paragraph c. above, the word "agent/broker" in such item shall be read to mean "Servicing

Carrier".



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2.2 Collection of Accounts Receivable

1. The Servicing Carrier will be responsible for following normal collection procedures

when dealing with accounts receivable and will also be responsible for representing the

interests of the Facility Association in any case where a recovery may be possible.

Where legal/collection expenses are expected to be incurred on behalf of the Facility

Association, these shall require review by the Provincial Operating Committee for

recommendation to the Facility Association Board of directors or the President for

approval.

2. If a Policyholder has paid his premium to the appointed agent/broker of the Servicing

Carrier (and provided that the Policyholder's cheque for payment has been honoured by

the bank or that the Policyholder can present a receipt for cash payment) the Servicing

Carrier will properly credit the Policyholder even if the agent/broker fails to remit the

payment to the Servicing Carrier.

3. In the case of a cancelled agency, the Servicing Carrier will:

a) immediately notify the Facility Association and provincial regulatory/licensing

authority of the agency/brokerage cancellation and the amount of the

outstanding debt.

b) set up a mechanism to service the business of the cancelled agent/broker either

through its own office or through arrangements with another agent/broker until

the last policy is expired.

c) advise each policyholder of its intent and the method of obtaining policy

service until expiry.

d) give proper notice of non-renewal to policyholders as required in their

jurisdiction.

e) obtain proof of payment directly from the policyholder in the case of any

account for which the Servicing Carrier has not been paid by the agent/broker.

The authorized rate of commission is to be shown for every debit/credit entry in the

agency/brokerage account.



Page 11

If proof of payment has not been received within 30 days, cancellation by

registered letter in accordance with the policy conditions must be effected so

as to minimize the indebtedness.

f) assume responsibility for accounts receivable from, and refunds payable to

policyholders. Premium transactions processed after the cancellation of an

agency must be invoiced directly to the policyholder. If payment is not

received within 30 days, the policy must be cancelled by registered letter in

accordance with the policy conditions to minimize the indebtedness.



Page 12

Chapter 3 Accounting Procedures for Servicing Carriers

3.1 Accounting Records

Each Servicing Carrier is required to maintain the following books of record and reports

separately for its Facility Association business:

1. General Ledger

2. Journal Vouchers/General Journal

3. Cash Receipts Journal

4. Cash Disbursements Journal

5. Aged Premium Receivable Report

6. Written Premium Bordereau

7. Claims Bordereau (paid and outstanding claims)

3.2 General Ledger

The general ledger for the Facility Association will contain the following accounts:

Account No. Account Title

1000 Bank Balance

1010 Unapplied Premium

1020 Premiums Receivable

1030 Allowance for Doubtful Accounts

1040 Allocated Expense Recovery

1050 Other Assets

2000 Commissions Payable

2010 Outstanding Claims Draft

2020 Uncashed Cheque Reserve

2030 Unearned Premiums

2040 Unpaid Claims

2050 Other Liabilities


Revised: June 07, 2013

Page 13

2060 Retail Sales Tax Payable / (Receivable)

3000 Transfer to/from Facility Association

3010 Surplus/Income Summary

4000 Premiums Written

4005 Handling Fee/Interest Revenue

4010 Change in Unearned Premiums

4020 Paid Claims & Recoveries

4030 Change in Unpaid Claims

4040 Commissions

5000 Bad Debts

5010 Bank Charges

5020 Miscellaneous Income/Expenses

5030 Driver Record Abstract (DRA) Costs

5040 Operating & Service Fee Expense

5050 Claims Service Fee Expense

Detailed description of each general ledger account is shown in Exhibit 3-A.

The following are the jurisdiction codes used by Servicing Carriers on the trial balance:

Jurisdiction No. Jurisdiction

075 Newfoundland

150 Alberta

200 Nunavut

375 New Brunswick

450 Nova Scotia

525 P.E.I

600 Ontario

825 Yukon

900 N.W.T.

3.3 Bank Account(s)

A separate account or accounts with a bank designated by the Facility Association will be

established by each Servicing Carrier for Association transactions. The banking resolution

required to operate the bank account(s) will contain such wording as is required by the



Page 14

designated bank. Provision will be made in the banking resolution for the Facility

Association Central Office to control the account(s). Each Servicing Carrier must ensure

daily clearing of deposits from all of its locations to a central account in the main office of

the bank in a designated city. In addition, all disbursements on behalf of the Facility

Association by the Servicing Carrier (all locations) will be drawn on a central account at the

said bank main office. At the end of each business day, the bank will zero balance Servicing

Carrier accounts with Facility Association Central Office bank accounts. The management

of the account(s), as far as making optimum use of the cash balances, is the responsibility of

the Facility Association Central Office.

The Servicing Carrier will designate those individuals who will have authority to disburse

and deposit funds in the bank account(s).

Any banking or transaction costs related to payments (e.g. by credit card) will be borne by

the Servicing Carrier.

3.4 Operation of Bank Account(s)

The Facility Association bank account(s) under the control of the Servicing Carrier will be

used for the following purposes:

1. With regard to deposits

Receipt of premium collections daily

Claims recoveries e.g. salvage and subrogation daily

Funds transferred from Association central bank account

Premiums, claims and commissions related adjustments

Receipt from the insureds for NSF cheques

2. With regard to disbursements

Payment of claims - either by cheque or by draft or direct deposit via Electronic

Fund Transaction (EFT)

Refund of deductible amounts recovered from subrogation collections



Page 15

Payment of agents'/brokers’ commissions

Premium refunds

Bank service charges

Funds transferred to The Facility Association Central Office account

Payment for Driver Record Abstracts

Payment of allocated claims expenses (see Section 3.8)

Payment of operating and service fees

Payment of claims service fees

Payment of salvage and subrogation – HST, record in Misc Income and Expense

Other expenses maybe permitted (Servicing Carrier must provide details)

3.5 Use of Books of Record

1. Cash Receipts Journal - should include sufficient detail to identify all receipts from

Association agents/brokers and Insureds, receipts on account of salvage and

subrogation and other cash receipts. Deposits of all receipts should be made to the

Facility Association bank account(s) maintained by the Servicing Carrier within 2

business days after receipt. When the cheque includes salvage and/or subrogation

items for both Facility Association and their regular book of business, the Servicing

Carriers are permitted to deposit the cheque no later than the last workday of the

following month in which the cheque was received. (See Section 3.9 for cash transfer

confirmation procedures).

2. Cash Disbursement Journal - should include sufficient detail to identify all

disbursements for losses paid either by cheque or by draft or by EFT, payments of

premium refunds, refunds of deductible amounts recovered from subrogation

collections, intermediary commissions, bank service charges, cost of Driver Record

Abstracts, allocated claims expenses, operating and service fees, claims service fees

and other expenses maybe permitted and Servicing Carrier must provide details. (See

Section 3.9 for cash transfer confirmation procedures.)

3. General Journal – details supporting each journal should be provided as follows:



Page 16

a) entry date, value date

b) the name and the account number/s used

c) an explanation of the transaction, and

d) debit and credit amounts to be posted to the Facility Association general ledger.

4. Written Premium Bordereau - the Servicing Carrier will be required upon request to

provide a premium bordereau for audit purposes. This report should include sufficient

detail to identify all premium transactions during the month.

5. Claims Bordereau (Paid and Outstanding Claims) - The Servicing Carrier will be

required upon request to provide a claims bordereau for audit purposes. Sufficient

detail of all loss payments and recoveries recorded during the month, and all

provisions for outstanding losses as of the end of the month, must be included.

3.6 Supporting Documentation for Books of Record

All entries in the books of record will require supporting documentation, properly

maintained and filed by the Servicing Carrier for a minimum of 7 years. Required

documentation is as follows:

1. Premium records - support at the detailed transaction level for:

a) New business

b) Renewals

c) Endorsements (return and additional premium)

d) Cancellations

2. Claims transaction records - support at the detailed transaction level for:

a) Cheques or drafts or EFT issued in settlement of losses

b) Supportable expense for salvage and subrogation recoveries (if not deducted from

settlement of losses as per a) above)

c) Allocated claims expenses charged through the Facility Association accounts



Page 17

3. Commission payment records - will be maintained on a monthly basis. The Servicing

Carrier will be required to maintain the commission data on a basis that will facilitate

the preparation of the required government returns (T4's, etc.) to be filed annually by

the Servicing Carrier. Since the agent/broker is deemed to be an independent

businessman there is no obligation on the part of the Servicing Carrier to provide a

copy of the required government return to the agent/broker.

4. Driver record abstract – invoices from and payments to government agency should be

on file.

5. Other disbursement records - supporting detail for any Association disbursements to

reimburse Servicing Carriers for incorrect payments that might have been made from

the Servicing Carrier's own bank accounts and for bank service charges.

3.7 Documents for Disbursements

Drafts or cheques or Electronic Funds Transfers (EFT) may be used by the Servicing Carrier

in settlement of claims and allocated claims expenses, premium refunds, agents'/brokers’

commissions and other expenses, where permitted. All draft and related cheque forms will

be printed in the name of the Servicing Carrier in a format selected by the Servicing Carrier.

The expense for the preparation and printing of these forms and other banking related items

e.g. deposit books is for the account of the Servicing Carrier and not to be charged to the

Facility Association.

3.8 Allocated Claims Expenses Optional Procedure

Normally, allocated claims expenses will not be paid from the Servicing Carrier's

Association bank account because the claim service fee payable to the Servicing Carrier

substitutes for reimbursement of claim expenses, both allocated and unallocated. As an

optional procedure, a Servicing Carrier may elect to pay allocated claims expenses from the

Facility Association bank account and reduce the amount of the anticipated claim service fee

reported to the Facility Association central processor by the total of all allocated claims

expenses so treated. In this event, the reimbursement of claims service fees due to the



Page 18

Servicing Carrier will be net of allocated claims expenses previously paid from the Facility

Association bank account. Supporting detail for allocated claims expenses so treated must

be maintained by the Servicing Carrier.

Allocated claims expenses so treated will be recorded in the general ledger's "Allocated

Expense Recovery" Account No. 1040, not in "Paid Claims and Recoveries" Account No.

4020.

3.9 Submission of Accounting Reports

The Servicing Carrier is required to submit the following reports to the Facility Association

Central Office within 30 days of the applicable month-end.

Trial Balance of Servicing Carrier General Ledger Exhibit 3-B

Cash Analysis and Bank Reconciliation Exhibit 3-C

Request for Service Fees Exhibit 3-D

Aged Premium Receivable Report Exhibit 3-E

Cash Transfer Confirmation Exhibit 3-F

Agent Commission, and Written Premium Report Exhibit 3-G

Commission Adjustment Report by Servicing Carriers Exhibit 3-H

Bank account balance verification from General Ledger

In addition, all annual reports as requested are required within 30 days of the year end.

Trial Balance of Servicing Carrier General Ledger Exhibit 3-B

The trial balance is a statement of the General Ledger account balances at the close of each

accounting month. All account balances must be provided by jurisdiction.

Monthly Cash Analysis and Bank Reconciliation Exhibit 3-C

The Servicing Carrier will establish a relationship and lines of communication with the

Facility Association's bankers in the same manner as those established for the Carrier's own

business. Controls must be established by the Servicing Carrier to record the daily activity

in the bank account(s) so as to provide the necessary information to complete the schedule



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of cash analysis (Exhibit 3-C) and the preparation of bank reconciliation as prescribed by the

Facility Association. Following reasonable attempts to reconcile all differences, Servicing

Carriers may write-off differences less than $50 to clear items in the bank reconciliation

each month. Servicing Carriers should itemize and track all write-off differences for

submission to FA annually with the October year-end trial balance.

Monthly Request For Service Fees Report Exhibit 3-D

Upon receipt and review of the Servicing Carrier's monthly Trial Balance and Request for

Service Fees, the Facility Association Central Office will advise the Servicing Carrier that

the reimbursement of the servicing carrier fees will be provided via EFT or by cheque if so

requested by the carrier for:

1. Operating Service fees for the month;

2. Net Claims Service fees for the month.

Under no circumstances will the Servicing Carrier issue cheques for service fees without

prior written authorization from Facility Association Central Office, Finance and Member

Services.

The above mentioned disbursements will be recorded as follows:

Debit - Operating and Service Fee Expense G/L #5040

Debit - Claims Service Fee Expense G/L #5050

Credit - Allocated Expense Recoveries G/L #1040

Credit - Facility Association Bank G/L #1000

Aged Premium Receivable Report Exhibit 3-E

All Servicing Carriers must complete a standardized aged premiums receivable report

(Exhibit 3-I). Servicing Carriers must ensure that these numbers reconcile to the premiums

receivable reported on their trial balance. The Servicing Carrier should also comment on the

collection status of all overdue accounts (greater than 90 days past due), including the

likelihood of collecting these overdue accounts. Servicing Carriers are not permitted to

provide an allowance for doubtful accounts as the annual provision at year-end will be



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estimated by Facility Association central office. Please refer to section 2.2 Collection of

Accounts Receivable and 3.17 Write-off of Accounts Receivable.

It is the responsibility of the Servicing Carriers to clear all their receivables beyond 90 days

and if any outstanding balance remains on the Servicing Carrier's aged trial balance beyond

that period (i.e. 90 days) and if the account in question:

a) has not been referred to the Provincial Operating Committee for a ruling, or

b) is not in litigation,

then the Servicing Carrier shall be charged an interest penalty on the outstanding balance(the

date is due as per the broker statement and it is the net amount not split between debit and

credit), at the Prime Rate charged by Canada’s chartered banks to their most credit worthy

customers, for as long as the account remains outstanding. The Servicing Carrier will remit

the interest payment annually to Cnetral Office. Central Office will provide annually a

worksheet with a detailed breakdown by month the broker overdue amount and the interest

owed to Facility Association. It is recorded to Interest Income-Overdue Broker account a/c

4161.

If the outstanding balance remains after 150 days, the Servicing Carrier is required to submit

the outstanding amount in full or submit an appeal to the Provincial Operating Committee

for a special review.

Cash Transfer Confirmation Exhibit 3-F

Balances in the Servicing Carrier's Facility Association Bank account will be automatically

transferred to the Facility Association Central Office bank account by its banker as

prescribed by the Facility Association at the end of each business day.

The Servicing Carrier will be provided with a summary of the cash transfers for the month,

as reported by the Facility Association banker. This summary must be verified against the

cash transfers recorded in the Servicing Carrier's general ledger, and a "confirmed" signed

copy is to be returned to the Facility Association Central Office.

Agent Commission, and Written Premium Report Exhibit 3-G

The Servicing Carrier will be required to submit a monthly commission and written



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premium report by jurisdiction and by business segment, which are private passenger and

non-private, passenger automobile insurance.

Commission Adjustment Report by Servicing Carriers Exhibit 3-H

To allow for early detection and correction of Servicing Carrier commission differences by

business segment, the Servicing Carriers are required to reconcile trial balance data with

IBC statistical data and to submit commission adjustments which are to be included with

monthly commission as reported in Agent Commission, and Written Premium Report

(Exhibit 3-G). Please refer to Section 4.8 for the reconciliation of the Servicing Carriers’

trial balance to their statistical reporting.

Bank Account Balance Verification from General Ledger

Servicing Carriers are required to submit the General Ledger page confirming the monthly

ending balance of the bank account.

Annual reports

Servicing Carriers may be required to submit various year-end reports to the Facility

Association Central Office as requested at the time of the year-end audit.

It is the responsibility of the Servicing Carrier to maintain accurate records on structured

settlements and submit them at year-end to Facility Association as required.

3.10 Outstanding Cheques and Drafts

At the end of each month all cheques and drafts outstanding for six months or longer from

the date of issue should be transferred to the "Uncashed Cheque Reserve Account". This

transfer will be effected by Journal Voucher and entered on the Cash Analysis Schedule.

Listings in support of this General Ledger account will be maintained by the Servicing

Carrier, although it is understood that the liability will be assumed by the Facility

Association. Servicing Carriers must remit abandoned property to Alberta Finance by

end of March of every year as per Alberta’s unclaimed property guidelines. An email



Page 22

from the Senior Accountant will be sent by the end of January of every year to Servicing

Carriers to remind them of this requirement. Please refer to Facility Association

Unclaimed Property Guidelines and Procedures (Exhibit 3-J).

3.11 General Ledger Analysis

It is the responsibility of the Servicing Carrier to maintain detailed information including

sub-ledgers as required for audit purposes which shall be balanced monthly to the

appropriate general ledger control accounts as follows:

Premiums Receivable (GL Account 1020)

Allowance for Doubtful Accounts (GL Account 1030)

Other Assets (GL Account 1050)

Commissions Payable (GL Account 2000)

Outstanding Claims Drafts (GL Account 2010)

Uncashed Cheque Reserve (GL Account 2020)

Other Liabilities (GL Account 2050)

Bad Debts (GL Account 5000)

Miscellaneous Income/Expenses (GL Account 5020)

3.12 Audit

All the Facility Association books of accounts maintained by the Servicing Carrier will be

subject to a year-end audit by their external auditors and their auditor’s report is to be

submitted to the Facility Association’s external auditor designated by the Board of

Directors. Audits may also be conducted by the Facility Association’s Audit & Compliance

department during the course of the year.

3.13 Retention of Records

The retention and distribution of records by the Servicing Carrier will follow the statutory

requirements as set out for insurance companies at the Provincial or Federal level.

Nevertheless, records supporting the entries on the books of record shall be retained for the

Facility Association audit purposes for at least a seven-year period.



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3.14 Advancement of funds by the Servicing Carrier to the Facility Association

On authority of the Facility Association's Board of Directors, a Servicing Carrier may

advance funds from its own account to its Association bank account. Interest will be

payable to the Servicing Carrier at the then current prime rate.

3.15 Monthly Reconciliation Report

Facility Association requires Servicing Carriers to reconcile transactions reported to the IBC

with the amounts reported on the Carrier’s Trial Balance. As an aid to this reconciliation,

Servicing Carriers can download a copy of the trial balance report which is available on the

FA portal.

3.16 Reconciliation between sub-ledger and general ledger balances for

Accounts Receivable

Reconciliation between servicing carrier’s sub-ledger and general ledger balances for

Accounts Receivable must be completed monthly by servicing carrier. Any unexplained

differences will not be eligible for write-off by Facility Association. If the servicing carrier

is unable to resolve the differences, and the general ledger balance is higher than the sub-

ledger, the servicing carrier must reimburse Facility Association to clear the difference.

3.17 Write-off of Accounts Receivable

1. Provided that the Servicing Carrier has followed the procedures set out above (please

refer to Aged Premium Receivable Report Exhibit 3-E), any defaults in payment of

accounts will be borne by the Facility Association. All requests for the write-off of

accounts receivable must be fully documented and submitted to the appropriate

Provincial Operating Committee for review and recommendation to be made to the

Board of Directors or the President for final approval.

2. There shall be no write-off of premiums in respect of deferred premium payment plans

or monthly payment plan offered by the Servicing Carrier. Write-off of premiums in

respect of direct billing plans should normally not be necessary. If there are special



Page 24

circumstances, however, the matter shall be fully documented and submitted to the

appropriate Provincial Operating Committee for review and recommendation be made

to the Board of Directors or the President for final approval.



Page 25

Chapter 4 Accounting Procedures for Facility

Association Central Office

4.1 General

Facility Association Central Office is required to maintain the necessary financial records

for reporting to its members. The Facility Association utilizes an accounting software that

runs in a Windows environment.

4.2 Books of Original Entry

The books of original entry required will be as follows:

1. Cash receipts journal

2. Cash disbursements journal

3. Journal Vouchers/General Journals

4. Accounts Payable Ledger

5. Accounts Receivable Ledger

6. General Ledger

The support for postings to the General Ledger will be the books of record maintained by

The Facility Association Central Office. Fixed assets are expensed rather than capitalized,

as the difference between amortizing and capitalizing the value of the assets is nominal.

4.3 Contents of Books of Original Entry

The cash receipts journal will record receipts from Members, Servicing Carriers, Inter

Company transactions within the Facility Association group of entities as well as any

investment income earned. The cash disbursements journal will record all disbursements for

the operation of The Facility Association Central Office, including administrative expenses,

as well as Member and Servicing Carrier related expenses. The Accounts Payable and

Accounts Receivable Ledgers maintain balance due to and due from Vendors, Members and

Servicing Carriers.



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4.4 Bank Accounts

Bank accounts will be established, as required for the Facility Association Central Office.

Such accounts maybe opened only at the direction of the Board of Directors with the

approval by the Facility Association’s President. As approved by the Facility Association’s

Board of Directors, all disbursements including cheques, drafts and EFT payments will

require at least two signatures. All persons with responsibility of the Facility Association

bank accounts must be bonded in an amount appropriate for the responsibility.

4.5 Cash Flow

FARM’s cash balance may increase by the funds transferred from the Servicing Carriers to

Facility Association for premiums received plus any investment income received by Facility

Association on investments held at the Facility Association.

FARM’s cash balance may decrease by funds transferred to the Servicing Carriers for

payment of claims, reimbursement of legal fees, and servicing carrier fees. Also reducing

cash balance are disbursements for Facility Association’s operating expenses and claims

paid to Ex Servicing Carriers (run-off) and Members in liquidation.

4.6 Use of Cash

Each month, an analysis is performed of Facility Association’s FARM related cash flow

needs for the next eight months. Based upon this estimate, a determination is made

regarding the appropriate net transfer to or from members to be made (if any). This practice

places as much of the FARM policyholder funds with the member companies as possible,

while continuing to provide the Facility Association with the necessary funds to settle

FARM policyholder claims on a daily basis.

If not specifically requested by members to receive funds via cheques, the Facility

Association will deposit funds directly to members’ accounts via Electronic Funds

Transfer (EFT).



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4.7 Preparation of Financial Statements

1. It will be the responsibility of the Facility Association Central Office to prepare a

consolidated trial balance and Statement of Financial Position monthly of the General

Ledger and maintain the proper detail in support of the applicable General Ledger

accounts.

2. The Central Office management will be responsible for actuarial provisions (such as

IBNR and actuarial present value adjustments) calculated based on assumptions

provided by the Facility Association’s Appointed Actuary.

3. In addition, The Facility Association Central Office will be responsible for the

preparation of the members' monthly Participation Report within 45 business days of

the close of the reporting month.

FARM Participation reports are available to Members for on-line retrieval via the

Facility Association Portal. The Operational schedule for release dates of the

members' monthly Participation Report is also available on the Facility Association

website.

4. Any balances due to or from members will be settled on the basis of the Participation

Report.

5. Within 6 months of the Facility Association's fiscal year-end an audited financial

statement of the operation of the Facility Association’s Residual Market will be

available for presentation to and acceptance by the members.

6. The audited financial statements are available at www.facilityassociation.com.

http://www.facilityassociation.com/production_schedule.asp

http://www.facilityassociation.com/financial.asp

http://www.facilityassociation.com/



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4.8 Reconciliation of the Servicing Carriers' trial balance to their statistical

reporting

It is the responsibility of the Facility Association’s Finance & Member Services department

to ensure that all variances in the trial balance report and other reports sent to the

Association by a Servicing Carrier are reconciled by the Servicing Carrier.

The Servicing Carriers are responsible for reconciling any differences in excess of $25,000

on a monthly basis and $100,000 on a fiscal year basis and Facility Association’s Finance &

Member Services department is responsible to advise the Servicing Carrier of these

amounts.

In terms of “older year” differences (i.e. more than 5 years old), Servicing Carriers must

submit a request annually for write off if required:

Carriers should be able to demonstrate that a concerted effort was made to resolve the

difference

Servicing carrier fees will be allowed when premium or claims are increased and will be

returned when premium or claims are reduced.

Carriers to advise the accounting entries (by jurisdiction) for this adjustment before

submission to the Board for approval

The difference should be shown as a % of total business processed over the years to

which the write-off applies

Request for write-offs may be submitted to Facility Association central office annually

anytime during the year, however, any Board approved adjustments should only be

processed by jurisdiction and only to the October trial balance.

Facility Association Accounting & Statistical Manual Part I FARM- Chapter 5


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Chapter 5 Servicing Carriers' Statistical Data

5.1 Submission of Statistical Data

Each Servicing Carrier will submit the statistical data in respect of its Facility Association

Residual Market (FARM) premium and claim transactions to the designated Statistical

Agency (General Insurance Statistical Agency, “GISA”)). The submission of the data in

respect of each calendar month's transaction is to be completed within thirty days after the

last day of that month. The format, coding and control of the transactions are to be in

accordance with the Automobile Statistical Plan administered by the Insurance Bureau of

Canada (IBC) subject to the following special provisions in respect of Facility Association

business:

1. A special IBC Company No. (Commencing with '9')

2. A special Plan Code No. ('9')

Please refer to the Automobile Statistical Plan for mandatory field codes.

5.2 Correction and Resubmission of Invalid Statistical Data

The Servicing Carrier is responsible for the prompt correction and resubmission of

transaction data that the Statistical Agency reported as being invalid.

5.3 Other Reports to Statistical Agency

Each Servicing Carrier is responsible for the completion and return of reports required by

the Statistical Agency in respect of the Residual Market (FARM) business.



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Chapter 6 Members' Participation in Facility Association

Residual Market Results

6.1 Calculation of Members' Share of Facility Association Residual Market

(FARM) Results

At the end of each fiscal year, profit or loss for each class of business, Private Passenger and

Non Private Passenger, shall be determined separately for each accident year in each

jurisdiction in accordance with accounting procedures approved by the Board of Directors.

Calculations for an accident year shall include all policies earned during such calendar year.

Profit shall be credited or distributed to each member and loss shall be charged against or

collected from each member in accordance with the member's appropriate participation

ratio.

Each member's participation ratios for an accident year shall be in accordance with the Plan

of Operation, Article V-Participation Ratios and Sharing, Section 3 (a) and (b).

6.2 Participation Report

The Facility Association's Central Office will produce a monthly Participation Report for

each member. The report (see Exhibit 6-A for sample report) will display, by jurisdiction,

segment of business ("Private Passenger" and "Non Private Passenger") and accident year,

the member's shares of the following amounts:

a) written and earned premiums, paid losses, claim service fee, change in retro claims

expense, operating and service fee, agents’/brokers’ commissions, driver record

abstracts, administration expense, bad debts, premium finance fee and investment

income, relative to the report month;

b) month end provisions for outstanding losses, I.B.N.R. losses (including actuarial

present values) and premium deficiency; and

c) estimates in respect of the above items for the two succeeding months;




Page 31

All of those amounts are for recording in the member's books as relating to direct business.

Beginning with the March 2009 Participation report, the monthly report produced is

available on the Facility Association Portal at https://portal.facilityassociation.com/. To

assist readers in understanding the new report layout, the User Guide is also posted on the

Facility Association website.

The target date for the release of each Participation Report is 45 business days after the last

day of the report month. Members are advised via “F” bulletin that the reports are available

on the FA Portal.

6.3 Government Line Report

The Government Line Report (see Exhibit 6-B for sample report) for each member is

produced monthly. It uses the same information that has been calculated for the Member

Participation Report. The Government Line Reports line items are the same as the

Projections page on the Member Participation Report but at a more detailed level–

Government Line and Accident Year.

The Government Line Report, replacing the Quarterly Report and the Year-end Report,

provides members with results on both a fiscal year and a calendar year basis.

This report is available on the Facility Association portal at

https://portal.facilityassociation.com. Changes to the new report are identified in the User

Guide and the detailed descriptions for each page are also set out in the User Guide.

6.4 Assessment/Distribution of Funds

At the end of each fiscal year, profit or loss for each class of business, Private Passenger and

Non Private Passenger, shall be determined separately for each accident year in each

jurisdiction in accordance with accounting procedures approved by the Board of Directors.

Profit shall be credited or distributed to each member and loss shall be charged against each

member in accordance with the member's appropriate participation ratio.

https://portal.facilityassociation.com/

http://www.facilityassociation.com/IT_Modernization-AppManuals-FARM.asp







Page 32

In 2005, the Facility Association Board of Directors authorized the transfer to member

companies of FARM policyholder funds not required to meet Facility Association’s short

term FARM cash flow needs. Transferring these funds to Members will allow them to

invest these funds based upon their own investment plans and policies. In the Participation

Report, the net balance of the Operating Results Distributed and the Available Funds

Distributed will be either Funds held by FA or Funds held by Members. FARM

policyholder funds held by Members will eventually need to be returned to the Facility

Association to enable it to pay the policyholder claims to which these funds relate.



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Chapter 7 Servicing Carrier Claims Expense Allowance -

Retroactive Adjustment

7.1 Introduction

As specified in the Facility Association's Plan of Operation (Articles of Association,

Article IX), the claims expense allowances paid to each Servicing Carrier are subject to

retroactive adjustment in accordance with the incurred loss ratio (paid losses plus

outstanding losses expressed as a percentage of earned premiums) actually experienced on

the Facility Association business written by the Carrier. (Note: "Losses" do not include

"expenses")

The Facility Association's Central Office will calculate the said incurred loss ratio for each

jurisdiction by utilising the premium and loss data submitted by the Servicing Carrier to

the Statistical Agency.

7.2 Basis for Calculation of Loss Ratio

For policies earned prior to January 1, 1993, the incurred loss ratio will be calculated on a

calendar policy year basis i.e., by reference to all losses that have occurred on all the

policies that commenced in the calendar year concerned. For policies earned thereafter, the

incurred loss ratio will be calculated on a calendar accident year basis, i.e., by reference to

all losses that have occurred in the calendar year concerned.

7.3 Frequency of Adjustment

The calculation of the incurred loss ratio and the retroactive adjustment (if any) will be

effected three times for each calendar accident year (for 2003 and subsequent):

1. 1st (interim): Three months after the calendar year-end concerned;

2. 2nd

(interim): Two years after the three months after the end of the calendar year

concerned;




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3. 3rd

(final): Five years after the three months after the end of the calendar year

concerned.

Interim retroactive claims fee adjustments will be calculated on a projected 72-month

recorded loss ratio as estimated by Facility Association on a basis consistent with

September 30 valuation assumptions provided by the Facility Association’s Appointed

Actuary.

The 5-year adjustment will be calculated on the reported loss ratio by each Servicing

Carrier.

7.4 Calculation of Adjustment Amount

The adjustment to the claims expense allowance is calculated as follows:

1. Adjusted Allowance Rate

Base rate (see table below)

Plus: Incurred loss ratio 10

Equals: Adjusted Allowance Rate

Base rate is applicable in each jurisdiction

In no circumstances shall the Adjusted Allowance Rate be less than 9.00%

nor more than 19.00% for ON, NB, NS, PE, NT, NU & YT.

In no circumstances shall the Adjusted Allowance Rate be less than 9.00%

nor more than 16.00% in AB and NL.

2. Adjusted Claims Expense Allowance

Apply the Adjusted Allowance Rate to the earned premiums

Equals: Calculate the Adjusted Claims Expense Allowance by

3. Claims Service Fee Adjustment

Adjusted Claims Expense Allowance (calculated above)

Subtract: Claims Fees already paid

Equals: Claims Service Fee Adjustment



Page 35

Base Rate Table

ON, NS, NB, PE, NT,

NU & YT AB & NL

Initial Claims Service Fees paid

(% of Earned Premiums) 12.00% 10.00%

Reimbursement rate Loss Ratio Assumed

by the Initial Claims Service Fees Paid 65.00% 67.50%

Base Rate 5.50 3.25

Range of Adjusted Allowance Rate 9.00% - 19.00% 9.00% - 16.00%

7.5 Legal and Professional Fees

Information can be found in the FARM Claims Guide for legal and professional fees.

Facility Association Accounting & Statistical Manual Part II RSP


Page 36

PART II

RISK SHARING POOLS

Facility Association Accounting & Statistical Manual Part II RSP - Overview


Page 37

Overview – Risk Sharing Pools

The Risk Sharing Pools (“RSPs”), operating in Ontario, Alberta (two RSPs), New Brunswick

and Nova Scotia, provide a means for individual automobile insurance member companies to

transfer certain of the private passenger use automobile insurance policies they underwrite in the

respective jurisdiction.

The RSPs were established under the Plan of Operation (“the Plan”) of the Facility Association.

For risks that qualify for an RSP, members issue policies on their own accounts and may transfer

the whole of the policy or a portion thereof to the RSP, in accordance with the transfer rules set

out in the Plan of Operation. The member company that issues the initial policy (i.e., the

primary writer) remains responsible for servicing the policy, including any settlement of claims

that may arise from the policy. The Facility Association funds the operations of the RSPs

through a monthly sharing among members of the net of premiums received and claims and

expenses paid.

The Facility Association also manages the following Insurance RSPs:

The Ontario Risk Sharing Pool (“Ontario RSP”) has operated since January 1,

1993 and is comprised of private passenger business. Participating members share

in the experience of the Ontario RSP in relation to their share of the private

passenger market and their usage of the Ontario RSP weighted at 50% each in

accordance with the relevant provision of the Plan.

The two Alberta Risk Sharing Pools (“Alberta RSPs”) commenced operations on

October 1, 2004. The “Grid Pool” provides a means for Alberta automobile

insurance member companies to transfer private passenger use automobile insurance

policies that are subject to the statutory maximum premium. The “Non-Grid Pool”

provides a means for individual Alberta automobile insurance member companies to

transfer certain of the private passenger use automobile insurance policies they

underwrite. Participating members share in the experience of the Alberta RSPs in


Facility Association Accounting & Statistical Manual Part II RSP - Overview


Page 38

relation to their share of the private passenger market in accordance with the the

relevant provisions of the Plan.

The New Brunswick “First Chance” Risk Sharing Pool (“New Brunswick RSP”)

commenced operations on January 1, 2005. The RSP provides a means for

individual New Brunswick automobile insurance member companies to transfer

certain of the private passenger use automobile insurance policies they underwrite

that are eligible for the “First Chance” discount in that province. Participating

members share in the experience of the New Brunswick Pool in relation to their

share of the private passenger market in accordance with the relevant provisions of

the Plan.

The Nova Scotia Inexperienced Drivers Risk Sharing Pool (“Nova Scotia RSP”)

commenced operations on January 1, 2007. This RSP provides a means for

individual Nova Scotia automobile insurance member companies to transfer certain

of the private passenger use automobile insurance policies they underwrite that are

eligible for the “Inexperienced Drivers” discount in that province. Participating

members share in the experience of the Nova Scotia RSP in relation to their share of

the private passenger market in accordance with the relevant provisions of the Plan.

Submission of Risk Sharing Pools Data

Details on submission of Risk Sharing Pools data can be found in the Risk Sharing Pool

Procedures Manual.

http://www.facilityassociation.com/docs/planoperation/PoP%20-%20Complete%20Document,%20Consolidated%20Apr%202009.pdf

Facility Association Accounting & Statistical Manual Part II RSP - Chapter 8


Page 39


Accounting and Reporting Responsibilities


The following outlines the data processing, accounting and reporting responsibilities of

the Facility Association in managing the Risk Sharing Pools:

1. Administer Bank accounts for the Risk Sharing Pools

2. Manage cash flow and settle funds with members

3. Generate monthly Operational reports and Government Line Reports for

members

4. Set expense allowance for each calendar year for each Risk Sharing Pool

(Alberta is in consultation with the Superintendent of Insurance)

5. Report participation experience monthly and update share ratio of the members

annually


7. Prepare monthly and audited annual Financial Statements

8. Ensure the effectiveness of internal control procedures



the Members on the Risk Sharing Pools:

1. Record in their books their share of allocated participation experience as direct

business

2. Remit monthly settlements when due

3. Pay premium taxes, health levies, Bureau and other association expenses

according to allocated participation


Part II RSP- Chapter 8


Page 40

The Facility Association communicates with members via “F” bulletins which are posted

on the Facility Association’s website.



Page 41

Chapter 9 Members’ Sharing in Risk Sharing Pools’

Results

To allow members to record their share of Risk Sharing Pool business and meet related

regulatory requirements, the Association produces three monthly reports:

The Operational Report

The Government Line Report

The Management Information Report

This allows members to review the impact of the Risk Sharing Pool on the member’s operations.

The Facility Association will be responsible for the preparation of these Reports within 25

business days of the close of the reporting month.

9.1 Calculation of Members’ Share of Risk Sharing Pools’ Results

At the end of each fiscal year, profit or loss for each class of business, Risk Sharing Pools,

shall be determined separately for each accident year in each jurisdiction in accordance with

accounting procedures approved by the Board of Directors.

Calculations for an accident year shall include all policies earned during such calendar year.

Profit shall be credited or distributed to each member and loss shall be charged against or

collected from each member in accordance with the member’s appropriate participation

ratio.

Each member’s participation ratios for an accident year shall be in accordance with the Plan

of Operation, Article V-Participation Ratios and Sharing, Sections 3 (c) and (d).

9.2 Operational Report

The Facility Association produces this report monthly for each of the Risk Sharing Pools

and any balances due to or from members will be settled on the basis of the Operational

Report.




Page 42

The Operational schedule for release dates of the members' monthly Operational Report is

also available on the Facility Association website.

The Operational Report displays the total premiums and losses transferred to the Risk

Sharing Pool by its Members, and the Member's share of the business transferred for the

current month, for the Fiscal Year to date and for all years to date.

The Operational Report allows the Members to recap the net cash flow between the Member

and the Risk Sharing Pool for the current month resulting in an amount either being due to

the Risk Sharing Pool by the Member, or due to the Member from the Risk Sharing Pool.

The report indicates the net amount due to/from the Risk Sharing Pool and the date of

settlement.

The Operational Report is divided into major categories as follows:

Risk SharingPool Total (Pages 1 and 2)

Member’s Share of Risk SharingPool Total (Pages 3 and 4)

Account Reconciliation , Including Share on Cash Basis (Pages 5 to 7)

Two-month Projections (Page 8)

The Report is produced on an accident year basis as follows:

The next future accident year, the current accident year and each of the four previous

years and the total of all other previous years.

With a total of all accident years on the right side of the page.

Throughout the Operational Report, the “Operating Result” is computed as Premiums

Earned, Less Claims Incurred and General Expenses, as follows:

Premiums Written (Transferred)

+ Change in Unearned Premium

= Premiums Earned (A)

Paid Losses

http://www.facilityassociation.com/production_schedule.asp



Page 43

+ Paid Expenses

+ Change in Outstanding Losses

+ Change in IBNR Provision*

= Claims Incurred (B)

Expense Allowance

+ Administration Expense

+ Change in Premium Deficiency (DPAC)*

= General Expenses (C)

*Including Actuarial Present Values

OPERATING RESULT = (A)-(B)-(C)

The sample Operational Report is attached as Exhibit 9-A and the User Guide is posted at

Facility Association website.

9.3 Government Line Report

The Government Line report is issued monthly and is available on the Facility Association

Portal. It is designed to assist Members to reflect their share of the Risk Sharing Pool

business in their reports to federal and/or provincial authorities.

The Government Line reports use the same information that has been calculated for the

Member Operational Report. Each of the Government Lines Reports, are the same as the

Projections page on the Member Operational Report but at a more detailed level -

Government Line and Accident Year.

Premiums are shown as transferred premiums by the various government lines with

unearned premiums calculated on the daily pro-rata method.

Claims are shown by paid losses, paid expenses, outstanding losses and I.B.N.R. provision

(including actuarial present values), and incurred losses as at the calendar year end by

government line. These are summarized for the next future year, the current year, each of the

http://www.facilityassociation.com/manuguide.asp



Page 44

previous four claim/loss years and all prior years combined.

Estimated incurred losses and estimated total outstanding reserves are presented on

discounted and undiscounted basis.

The report includes the projections for the next two months to determine what member’s

share is projected to be as at the end of the current reporting month + 2 months.

The sample Government Line Report is attached as Exhibit 9-B and the User Guide is

posted at www.facilityassociation.com.

9.4 The Management Information Report

The Management Information Report (see Exhibit 9-C) summarizes transactions between

Members and the Risk Sharing Pool.

This report is an information report issued monthly and is available on the Facility

Association Portal for each member in each of the Risk Sharing Pools since November

2008. It is not an accounting report but is intended to assist the Member in assessing the

impact of the Risk Sharing Pool on the Members operations both as a Member transferring

risks to the Risk Sharing Pool and as a Member sharing in the premiums, claims and

expenses of the Risk Sharing Pool.

The Member can measure the results of its underwriting, and claims operations by relating

the portfolio which the Member has transferred to the Risk Sharing Pool relative to the

portfolio transferred by all Members.

1. Report Sequence

By accident year.

“REPORTED” these amounts represent the risks transferred to the Risk Sharing

Pool by the Member

“SHARE” these amounts represent the Member’s share of total risks transferred to

the Risk Sharing Pool

http://www.facilityassociation.com/IT_Modernization-AppManuals-RSP.asp

http://www.facilityassociation.com/



Page 45

A summary of all accident years combined is shown at the end.

2. Contents of the Report (Horizontal Format)

a) Percentage – The Reported Percentage is the percentage which represents the

ratio of the premiums by the Member to the Premiums transferred to the Risk

Sharing Pool by all Members.

The Shared Percentage is the proportion of each Member writings to all Members

writings in that Risk Sharing Pool.

b) Gross Premiums – Premiums charged for that portion of the risks transferred by

the Member to the Risk Sharing Pool before any calculation of transfer percentage

or expense allowance.

c) Transferred Premiums

Ontario Risk Sharing Pool: The portion of the Gross Premiums transferred to the

Pool is 100% initially and 85% in second and subsequent years.

Other Risk Sharing Pools: The portion of the Gross Premiums transferred to the

Pool is 100%.

d) Expense Allowance

Ontario Risk Sharing Pool: Members must file the Expense Factor Form

annually; the calendar year expense allowance is subject to the cap

determined by the Board.

Alberta Risk Sharing Pools: As determined by the Board in consultation

with the Superintendent of Insurance.

New Brunswick Risk Sharing Pool: As determined by the Board.

Nova Scotia Risk Sharing Pool: As determined by the Board.



Page 46

e) Net Premiums – Transferred premiums less expense allowance.

f) Earned Premiums – The earned portion of the transferred premium.

g) Paid Claims – The Reported Paid Claims amount is the sum of the loss and the

expense payments transferred by the Member, each multiplied by the transfer

percentage applicable to the risk.

The Shared Paid Claims is a similar amount, representing the share of the Member

in the total of all Risk Sharing Pool Paid Claim.

h) Outstanding Claims – The Reported Outstanding Claims amount is the amount

transferred by the Member to the Risk Sharing Pool.

The Shared Outstanding Claims is a similar amount, representing the share of the

Member in the total of all the Risk Sharing Pool Outstanding claims, including the

I.B.N.R. (including actuarial present values).

i) Incurred Claims – Paid claims plus outstanding claims.

j) Earned Claims Ratio – Incurred claims to earned premiums.

Note that a comparison between the Reported Earned Claims Ratio and the

Share Earned Claims Ratio indicates how the portfolio which the Member has

transferred to the Risk Sharing Pool has fared in relation to the portfolio

transferred by all Members.

I.B.N.R. estimates (including actuarial present values) are included in the

“Share” outstanding Claims figures only.

k) Administration Expense – Each member’s share of the total of the Risk Sharing

Pool operating and administrative expenses.



Page 47

Chapter 10 Miscellaneous

10.1 Retention of Records

The retention of records by any member relating to the subject matter of the Plan of

Operation which includes the Risk Sharing Pool, must follow the Statutory Requirements as

set out for Insurance Companies at the Provincial and Federal level. In addition, records

supporting the transmission of data to the Risk Sharing Pool shall be retained for at least a

seven-year period.

10.2 Special Remittance

This refers to an amount that may be immediately payable by the Risk Sharing Pool to a

member as a result of the member having paid a single loss recoverable from the Risk

Sharing Pool in excess of $100,000. (The amount recoverable will be reviewed and

determined from time to time by the Board of Directors).

When the total amount paid by the Member and recoverable (net) through the Risk Sharing

Pool in respect of any one accident exceeds $100,000, the Member may at its discretion

submit a Special Remittance as outlined in Part IV Section 4-C of the Plan of Operation to

be paid immediately upon submission of the following information by correspondence:

Policy information including policy number, effective and termination dates, risk

classification, date-of-loss and coverage kind and a copy or copies (photocopies are

acceptable) of the claims payment cheques(s) for which the Special Remittance is

requested.

The Risk Sharing Pool will examine the information and upon satisfaction that the Loss is

within the authority of the Pool will immediately reimburse the member and enter the

particulars of the Special Remittance in the appropriate accounting record.



Page 48

10.3 Risk Sharing Pools Expense Allowance

Ontario Risk Sharing Pool

The Board of Directors will review the Expense Factors annually, prior to August 31st, and

make the necessary revisions where required and also establish the Maximum Expense

Factor which shall then appear as item (B) on the Expense Factor Form to be used for the

following calendar year. The Net Expense Factor will be calculated as item (A) on the

form, as per the Instructions. The Expense Factor Allowance to be used by the Member will

be the lesser of (A) or (B).

In order to determine the expense allowance applicable to the Member’s transferred

business, the Member must complete an Expense Factor Form (Exhibit 10-A) and forward

it to the Risk Sharing Pool by September 30th

annually.

Alberta Risk Sharing Pool

Expense allowance factor for each calendar year will be determined by the Board in

consultation with the Superintendent of Insurance prior to the October 31st of the

preceding year.

New Brunswick Risk Sharing Pool

Expense allowance factor for each calendar year will be determined by the Board prior to

the October 31st of the preceding year.

Nova Scotia Risk Sharing Pool

Expense allowance factor for each calendar year will be determined by the Board prior to

the October 31st of the preceding year.

The Expense allowance factor becomes applicable on the January 1st for the calendar

year.

Facility Association Accounting & Statistical Manual Part III UAF


Page 49

PART III

UNINSURED AUTOMOBILE FUNDS

Facility Association Accounting & Statistical Manual Part III UAF - Overview


Page 50

Overview – Uninsured Automobile Funds

The Uninsured Automobile Funds (UAFs) for New Brunswick, Newfoundland and Labrador,

Prince Edward Island and Nova Scotia, fund valid claims for damages made by persons who

cannot obtain satisfaction for damages under a contract of automobile insurance and where there

is no other insurance or where other insurance is inadequate with respect to the damages claimed.

The UAFs commenced operations as follows:

in New Brunswick on March 1, 1990;

in Newfoundland and Labrador on July 1, 1994;

in Prince Edward Island on July 14, 1994; and

in Nova Scotia on July 1, 1996.

The UAFs are governed by the respective provincial insurance acts. The responsibilities of the

Facility Association are to manage claims recording, adjustment and payment processes, to

allocate to members their share of the experience and to assess members to fund underwriting

deficits.

Facility Association Accounting & Statistical Manual Part III UAF - Chapter 11


Page 51


Accounting & Reporting Responsibilities



the Facility Association in managing the Uninsured Automobile Funds:

1. Administer Bank accounts for the Uninsured Automobile Funds

2. Bill and collect assessments with members when due

3. Report participation experience quarterly and update share ratio of the members

annually


5. Review claim invoices for validity

6. Ensure the effectiveness of internal control procedures



the Members of the Uninsured Automobile Funds:

1. Record in their books their share of reported participation experience as direct

business

2. Remit assessments when due


The Facility Association communicates with members via “F” bulletins which are posted

on the Facility Association’s website.



Page 52

Chapter 12 Members’ Participation in Uninsured

Automobile Funds’ Results

12.1 Calculation of Members’ Share of Uninsured Automobile Funds’ Results

At the end of each fiscal year, profit or loss for each class of business, Uninsured

Automobile Funds, shall be determined separately for each accident year in each

jurisdiction in accordance with accounting procedures approved by the Board of

Directors.

Calculations for an accident year shall include all policies earned during such calendar

year. Profit shall be credited or distributed to each member and loss shall be charged

against or collected from each member in accordance with the member’s appropriate

participation ratio.

Each member’s participation ratios for an accident year shall be in accordance with the

Plan of Operation, Article V-Participation Ratios and Sharing, Sections 3 (e).

12.2 Member Participation Statement

The Facility Association's Central Office will produce a quarterly Participation Statement

for each Uninsured Automobile Funds for each member. The report (see Exhibit 11-A for

sample report) will in particular display, by current fiscal year and accident years, the

member's shares of the following amounts:

Paid loss

Subrogation

Servicing Fee

Legal Expense

General Administration

Member Participation statements are available on the Facility Association Portal at




Page 53

https://portal.facilityassociation.com/.

The headings below correspond to those used in the sample Report shown as Exhibit 14-A.

a) Industry Earned Premium

b) Member Earned Premium

c) Member Sharing Ratio Percentage

d) Operating Results

- This Period

- Years to Date

e) Share (Year to Date)

f) Share (Previous Period)

g) Share (This Period)

h) Statement of Financial Position items

- Outstanding Losses

- IBNR Provision (including Actuarial Present Values)

- OS Losses Including IBNR (including Actuarial Present Values)

i) Net assessment

The target date for the release of each Participation Report is 25 business days after the close

of the reporting quarter. Members are advised via bulletin that the reports are available on

the FA Portal.


Facility Association Accounting & Statistical Manual Resources Available to

Servicing Carriers and Members


Page 54

Resources available to Servicing Carriers and Members

1. Facility Association website: http://www.facilityassociation.com/

2. Facility Association portal

3. Plan of Operation

4. Manuals:

Manuals of Rules and Rates

Risk Sharing Pool Eligibility Manuals

Claims Guides

Accounting and Statistical Manual

5. User Guide

FARM

FARM Participation Report User Guide

FARM Government Line Report User Guide

RSPs

RSP’s Operational Report User Guide

RSP’s Government Line Report User Guide


https://loginfa.facilityassociation.com/adfs/ls?version=1.0&action=signin&realm=urn%3AAppProxy%3Acom&appRealm=37a01237-e044-e511-80e3-0050569208f4&returnUrl=https%3A%2F%2Fportal.facilityassociation.com%2F&client-request-id=D302A5FB-6132-0002-9B01-09D33261D301

http://www.facilityassociation.com/manurulesrates.asp

http://www.facilityassociation.com/manurepprod.asp

http://www.facilityassociation.com/manuclaimsguide.asp

http://www.facilityassociation.com/manustats.asp

http://www.facilityassociation.com/docs/manuals/user%20guide/FARM%20Participation%20Report%20User%20Guide.pdf

http://www.facilityassociation.com/docs/manuals/user%20guide/FARM%20Government%20Line%20Report%20User%20Guide.pdf

http://www.facilityassociation.com/docs/manuals/user%20guide/RSP's%20-%20Operational%20Report%20User%20Guide.pdf

http://www.facilityassociation.com/docs/manuals/user%20guide/RSP's%20-%20Government%20Line%20Report%20%20User%20Guide.pdf

Facility Association Accounting & Statistical Manual Exhibits


Page 55

EXHIBITS

Exhibit 1-A Facility Association Servicing Carrier Agreement

Exhibit 3-A Servicing Carrier Trial Balance Accounts

Exhibit 3-B Trial Balance of Servicing Carrier General Ledger

Exhibit 3-C Monthly Cash Analysis and Bank Reconciliation

Exhibit 3-D Monthly Request for Service Fees

Exhibit 3-E Aged Premium Receivable Report

Exhibit 3-F Cash Transfer Confirmation

Exhibit 3-G Agent Commission, and Written Premium Report

Exhibit 3-H Commission Adjustment Report by Servicing Carrier

Exhibit 3-I Aged Premiums Receivable Summary

Exhibit 3-J Unclaimed Property Guidelines and Procedures

Exhibit 6-A FARM Monthly (Accident Year) Member Participation Report

Exhibit 6-B FARM Government Line Report

Exhibit 9-A RSP Operational Report

Exhibit 9-B RSP Government Line Report

Exhibit 9-C RSP Management Information Report

Exhibit 10-A Ontario Expense Factor

Exhibit 11-A UAF Member Participation Statement

Facility Association

Servicing Carrier Agreement

EXHIBIT 1-A

1 of 13

FACILITY ASSOCIATION SERVICING CARRIER AGREEMENT entered into this [ ] day of[ ], 201[ ] between

THE FACILITY ASSOCIATION (the “F.A.”) and [NAME OF CARRIER] (the “Servicing

Carrier”).

In accordance with the applicable legislation and Plan of Operation and related

documents under which the F.A. was created and presently operates (collectively called the

“Plan”), the Board of Directors of the F.A. (the “Board”) has designated the Servicing Carrier as

one of the authorized insurers as a Servicing Carrier for the F.A. in. [NAME(S) OF

JURISDICTION]

The Servicing Carrier has agreed to such appointment and this Agreement is being executed to

confirm the understandings and agreements between the parties.

ARTICLE I

APPOINTMENT

The F.A. hereby confirms the designation of [NAME OF CARRIER]

to be a Servicing Carrier to provide, pursuant to this Agreement and to the Plan and the applicable

legislation, the following services (collectively called the “Facility Association Services”): policy

services, claims services and all other services to be performed by the Servicing Carrier under the

Plan and the law, including, without limitation, underwriting, policy issuance, premium collection,

accounting, statistical and record-keeping services, claims investigation, handling, adjusting,

defence and payment and a current Business Continuity Plan and Volume Change Plan as

approved by Facility Association. By the execution hereof, the Servicing Carrier acknowledges its

agreement to act as a S ervicing Carrier and agrees to be bound by and to carry out all of the

obligations imposed upon it under this Agreement, the Plan and all applicable legislation and

agrees to be bound by the terms and conditions thereof.

EXHIBIT 1-A

2 of 13

ARTICLE II

TERM

The appointment of the Servicing Carrier commenced on the [ ] day of[ ],

201[ ], and shall continue until the Agreement has been validly terminated.

ARTICLE III

POWERS AND DUTIES OF SERVICING CARRIER

Section 3.1 The Servicing Carrier in addition to carrying out all of its obligations as

aforesaid shall administer the activities of all Agents/Brokers assigned to it in accordance with the

Plan. The Servicing Carrier agrees with the F.A. that it shall perform all of its obligations under

any contract entered into between it, the F.A. and any Agent or Broker (the Agent/Broker

Agreement) and agrees that any failure to meet any of its obligations thereunder or any failure by it

to cause any Agent or Broker to meet his or its obligations to the Servicing Carrier thereunder

shall constitute a breach of this agreement and shall entitle F.A. to take such steps as may be

necessary to enforce compliance with any such obligation. The Servicing Carrier shall promptly

notify the F.A. of the failure or refusal of any Agent/Broker to comply with any provision of the

Plan, the Agent/Broker Agreement or of any applicable legislation where such failure to comply

has arisen in the context of its F.A. business, and where such non-compliance is such that the

Servicing Carrier knew, or reasonably ought to have known, of its occurrence.

Section 3.2 The Servicing Carrier shall comply with all of the terms and conditions of

the Plan and with all written bulletins or directives issued by the F.A., and, in the event of any

conflict or difference between any of the foregoing and the operating procedures of or the method

of performing services by the Servicing Carrier in the voluntary market, the terms of the Plan and

all such bulletins and directives issued by the F.A. shall be followed and complied with in

connection with all F.A. business.

The Servicing Carrier shall designate, in writing, the person or persons within its

organization to whom all correspondence, bulletins, circulars and related material shall be sent by

the F.A.

EXHIBIT 1-A

3 of 13

Section 3.3 The Servicing Carrier shall carry out and perform all F.A. Services in

compliance with the Service Standards prescribed by Section 2 of Part II of the Operating

Principles of the Plan and the requirements of any applicable legislation and shall exercise due care

and diligence in connection therewith.

Section 3.4 The Servicing Carrier shall cause an audit of its F.A. business to be

conducted annually in accordance with the terms of engagement prescribed by the F.A. and shall

provide the results of such audit within seventy-five days following the F.A.’s fiscal year end or as

may be prescribed by the F.A.

Section 3.5 The Servicing Carrier shall cooperate fully with all officers, employees and

other representatives of the F.A. during audits, investigations or examinations made and conducted

by them and shall permit such persons to have full access, during normal business hours, to all

books and records of the Servicing Carrier pertaining to its F.A. business.

Section 3.6 The Servicing Carrier shall submit to the F.A., at such intervals as shall be

requested by the F.A., the request for service fees that are allowed for the performance of the F.A.

Services, such report to contain the information called for by any uniform operating expense form

adopted by the F.A., as the same presently exists or may hereafter be modified.

Section 3.7 The Servicing Carrier shall implement all changes, revisions, amendments and

modifications in rates and rules as are lawfully effected by the F.A. at such time or times as the

F.A. shall direct.

ARTICLE IV

RELATIONS OF THE PARTIES

Section 4.1 The Servicing Carrier shall be an independent contractor, performing its

F.A. Services free from any supervision or control by the F.A. except such supervision and control

as may be exercised by the F.A. in connection with enforcing compliance with the Plan and the

applicable legislation.

Section 4.2 With respect to the F.A. and the member insurers of the F.A., the Servicing

Carrier shall be a fiduciary in the handling of all F.A. funds.

EXHIBIT 1-A

4 of 13

ARTICLE V

TERMINATION

Section 5.1 This Agreement shall automatically terminate upon the occurrence of any of

the following events:

(a) The commencement of bankruptcy or rehabilitation proceedings against the

Servicing Carrier;

(b) The Servicing Carrier no longer meeting the eligibility requirements set forth in

Section 1 of Part II of the Operating Principles of the Plan;

(c) The enactment of legislation which terminates the operation of F.A. or the

obligations of the Servicing Carrier under this Agreement or the Plan.

Section 5.2 This Agreement may be terminated by the F.A. upon the occurrence of any

Event of Default, as defined in Section 10.1, and the failure or refusal of the Servicing Carrier to

remedy the same in the time and manner provided in Section 10.2.

Section 5.3 This Agreement may be terminated by the Servicing Carrier upon written

notice to the F.A. in accordance with the requirements set forth in Section 3 o f Part II of the

Operating Principles of the Plan.

Section 5.4 This Agreement may be terminated by the F.A. upon a determination by the

Board, subsequent to adequate consultation with the Servicing Carriers for the province concerned,

that it is appropriate to reduce the number of Servicing Carriers and upon notification thereof to the

Servicing Carrier, which notification shall specify a date, not less than one hundred and twenty

days after the date of the notification, on which this Agreement shall terminate.

Section 5.5 Subject to Section 5.3, upon termination of this Agreement under this

Article, the applicable provisions of the Plan shall govern the assignment of Agents/Brokers to

other Servicing Carriers and the continuing performance of F.A. Services by the Servicing Carrier

after the termination for a period of 18 months or as may be otherwise agreed by the parties.

Section 5.6 All costs, fees and expenses incurred by the Servicing Carrier in connection

with the termination of this Agreement under the provisions of Section 5.1(a), 5.1(b), 5.2 or 5.3

EXHIBIT 1-A

5 of 13

shall be borne by the Servicing Carrier without any right of reimbursement against the F.A. All

reasonable costs, fees and expenses incurred in connection with the termination of this Agreement

under Section 5.1(c) or Section 5.4 shall be borne by the F.A.; provided, however, that only those

reasonable costs, fees and expenses which are supported by documentation acceptable to the F.A.

shall be allowed and the F.A. shall have the right to audit the same prior to making any payments

hereunder.

Section 5.7 All books, records, files, policies, contracts, agreements, endorsements,

supplies, software and related material used by the Servicing Carrier in the performance of its F.A.

Services shall be and remain the property of the F.A. after termination of this Agreement and shall

forthwith be delivered up to F.A. representatives upon demand.

Section 5.8 In the event of the termination of this Agreement due to the

commencement of bankruptcy the Servicing Carrier agrees to provide Facility Association or

designated Servicing Carrier(s) with right of access to data with respect to any aspect of the

Facility Association business for the purpose of transferring policies to another Servicing Carrier

mid-term or at renewal.

ARTICLE VI

POWERS AND DUTIES OF THE F.A.

Section 6.1 Upon receipt of notice that an Agent/Broker assigned to the Servicing

Carrier is not complying with the Plan or with the terms of its F.A. Agency/Broker Agreement or

with any provision of any applicable legislation with respect to its F.A. business, the F.A. may, at

its option, suspend the Agent/Broker from writing any further F.A. business, terminate the

Agency/Broker Agreement or take such other steps as shall reasonably be required to enforce

compliance therewith and as shall be permitted under applicable law, the Plan or the

Agency/Broker Agreement.

EXHIBIT 1-A

6 of 13

Section 6.2 The F.A. shall comply with all of the provisions of the Plan and carry out

and perform all obligations and meet all liabilities imposed upon it u nder the Plan and this

Agreement, including the prompt payment to the Servicing Carrier of all fees, allowances and

other reimbursements to which the Servicing Carrier is entitled.

Section 6.3 The F.A. shall promptly notify the Servicing Carrier in writing of all

amendments or supplements to the Plan.

Section 6.4 The F.A. shall handle all filings of its rates and rules with the appropriate

authorities.

Section 6.5 The F.A. shall monitor the performance of the Servicing Carrier to assure

that services are performed in accordance with the Service Standards and the applicable legislation

and at reasonable cost to the F.A.’s member insurers, and, in connection therewith, shall audit, or

cause to be audited, each Servicing Carrier with such frequency and in such detail as it shall

determine. Copies of such audits shall be furnished to the Audit Committee of the F.A. and to the

Servicing Carrier.

Section 6.6 Upon determination by the Board and adequate consultation with Servicing

Carriers for the jurisdiction concerned, the assignment of new brokers may, on a non-arbitrary and

commercially reasonable basis, be realigned among Servicing Carriers.

ARTICLE VII

COMPENSATION

Section 7.1 In consideration of the performance by the Servicing Carrier of its

obligations, the Servicing Carrier shall be paid the applicable fees, allowances, cost

reimbursements and other compensation set forth in the Plan as in force from time to time. The

F.A. reserves the right to revise the amounts, methods of computation, times and manner of

payment and the components thereof at any time and from time to time. Any such revision shall be

effective upon approval by the Membership pursuant to the Plan, and written notification thereof to

the Servicing Carrier, at least one hundred and twenty days prior to the implementation of the

revised program.

EXHIBIT 1-A

7 of 13

Section 7.2 The Servicing Carrier shall be entitled to receive only such fees, allowances,

cost reimbursements and other compensation as are specifically authorized by or pursuant to the

Plan and this Agreement. W ithout limiting the generality of the foregoing, it is specifically

understood that the Servicing Carrier shall not be entitled to receive compensation or

reimbursement for:

(a) Any costs, fees or expenses incurred by it in connection with any suit, investigation,

examination, report, decision, claim or other proceeding by an any governmental or

regulatory body or by the F.A. respecting or in connection with the failure or

alleged failure by the Servicing Carrier to properly perform any of its obligations

with respect to the F.A.;

(b) Any loss, damage, expense, costs or fees incurred or paid by the Servicing Carrier

to any insured, Agent/Broker or any other person by reason of the failure of the Servicing Carrier

to carry out and perform any of its obligations under the Plan or this Agreement diligently and with

reasonable care and prudence, including, without limitation and without limiting the generality of

the foregoing, any loss, damage, expense, cost or fee resulting, directly or indirectly, from the

failure or refusal by the Servicing Carrier: (i) to perform any F.A. service in compliance with and

in a manner which complies with the Service Standards, as reasonably applied; or (ii) to account

for any funds received or disbursed by it in connection with the performance of any of its F.A.

services.

Section 7.3 The Servicing Carrier shall forthwith repay to the F.A. any monies received

from any source, other than in accordance with the provisions of this Agreement or the Plan, where

such funds are the property of the F.A.

ARTICLE VIII

REPRESENTATIONS AND WARRANTIES

The Servicing Carrier represents and warrants as follows:

Section 8.1 The Servicing Carrier is duly authorized to engage in the private passenger

and commercial vehicle automobile insurance business (including other automobile liability

classes of business) in the territory for which it has been designated to act as a Servicing Carrier,

EXHIBIT 1-A

8 of 13

holds a current licence or licences issued by the applicable regulatory body or bodies, has full

power and lawful authority to carry out and perform the duties imposed upon it under the terms of

this Agreement and the Plan.

Section 8.2 The Servicing Carrier has read and is familiar with the “Eligibility

Requirements” and “Service Standards” specified in Part II of the Operating Principles and, by the

execution hereof, agrees to be bound by and apply such criteria as presently existing or as hereafter

amended.

Section 8.3 All reports, data, information and other material set forth in the Servicing

Carrier’s application to become a Servicing Carrier or furnished or to be furnished by the Servicing

Carrier with respect to its appointment as a Servicing Carrier or the performance of its duties under

this Agreement and the Plan, and all reports, statements or other documents containing

financial,

accounting, statistical and related information furnished or to be furnished by the Servicing Carrier

to the F.A. or the F.A.’s statistical agency during the term of this Agreement were, at the time of

being furnished will be, true and correct to the best of the Servicing Carrier’s knowledge and

belief. All such accounting information has been, and will in future be, prepared in accordance

with generally accepted accounting principles. All such financial and statistical information has

been, and will in future be, prepared in accordance with the principles utilized by the Servicing

Carrier with respect to its voluntary business unless otherwise prescribed by the F.A.

Section 8.4 These representations and warranties will remain in full force and effect as

long as this Agreement remains in force and thereafter for a period of six years.

ARTICLE IX

COVENANTS

During the term of this Agreement:

Section 9.1 The Servicing Carrier will not assign, transfer or otherwise dispose of any

of its rights under this Agreement or the Plan to any person; provided, however, that the Servicing

Carrier may carry out portions of its F.A. Services by subcontract where it has received approval

EXHIBIT 1-A

9 of 13

by the Board to proceed with its intent to do so, it being understood and agreed that the Servicing

Carrier will remain primarily liable to the F.A. for the performance of such subcontracted portions.

Section 9.2 In the performance of its duties hereunder, or under the Plan, the Servicing

Carrier will not knowingly engage in any activity which is unlawful under any applicable

legislation.

Section 9.3 The Servicing Carrier will not knowingly do or perform, or refrain from

doing or performing, any act or thing so as to be in violation of this Agreement, the Plan or any

applicable legislation and thus subject the F.A., any member of the Board or any officer or

employee of the F.A. to any civil liability or criminal penalty. The Servicing Carrier agrees to

indemnify and hold the F.A. harmless from any civil liability, or any penalty or fine imposed as a

result of any breach of the foregoing obligation. The foregoing “indemnification and hold

harmless” agreement shall not apply to liabilities incurred through the reasonable action or inaction

of the Servicing Carrier where the course of conduct is undertaken in a reasonable and good-faith

belief that the Servicing Carrier was acting in accordance with all of the applicable rules and with

the Plan.

Section 9.4 The Servicing Carrier will not pay out or disburse any F.A. funds of any

purpose or to any person other than as specifically permitted or contemplated by the Plan or this

Agreement.

Section 9.5 These covenants will remain in force for as long as this Agreement remains

in force and hereafter for a period of six years.

ARTICLE X

NONPERFORMANCE BY SERVICING CARRIER

Section 10.1 Any of the following events shall be an ‘Event of Default” hereunder:

(a) The disclosure by any audit of the Servicing Carrier that the Servicing Carrier has

failed to perform its F.A. Services in compliance with the Service Standards, the Plan or any

applicable legislation;

(b) A default by the Servicing Carrier in the performance of any material obligation or

EXHIBIT 1-A

10 of 13

in the meeting of any liability imposed upon it under this Agreement, the Plan or any applicable

legislation.

Section 10.2 The F.A. shall notify the Servicing Carrier of any Event of Default of which

the F.A. becomes aware. Such notification shall specify the relevant facts and other details giving

rise to the Event of Default and, where possible and deemed advisable by the F.A., shall set forth a

reasonable and practical method and time for remedying the same. If the Servicing Carrier fails to

remedy the Event of Default in the time set forth in such notice, the F.A. may terminate this

Agreement by notice in writing, which notice shall specify the date of termination and such other

matters respecting the procedures to be followed in connection therewith as the F.A. shall

reasonably determine.

Section 10.3 The F.A. shall have the right, without advising the Servicing Carrier, to

communicate directly with any regulatory body or representative or official thereof in connection

with any matter concerning the Servicing Carrier’s performance or alleged or suspected failure to

perform its duties under the Plan or any applicable legislation, and either the F.A. or the Servicing

Carrier may, at its own cost and expense, initiate such action, suit or other proceeding or assert or

file such protest, answer or other defence as it may decide advisable with respect to any existing or

proposed rule, regulation, report, examination or finding issued or made by any legislative or

regulatory body which touches upon the performance by the Servicing Carrier of the F.A. Services

or which might adversely affect its standing or right to continue as a Servicing Carrier or might

expose either to any fine, penalty or civil liability.

ARTICLE XI

MISCELLANEOUS

Section 11.1 This Agreement shall be construed, interpreted and applied in accordance

with the laws of the Province of Ontario.

Section 11.2 Where used in this Agreement the term:

(a) “Plan” shall mean and include the F.A. Articles of Association and Operating

Principles, the Accounting and Statistical Manual and the Manual of Rules and Rates, and all

amendments, modifications and revisions made thereto from time to time;

EXHIBIT 1-A

11 of 13

(b) “F.A.” shall mean Facility Association and shall include its Board of Directors and

any committee established pursuant to the Plan;

(c) “Agreement” shall mean this Servicing Carrier Agreement and any amendments,

modifications or additions made thereto from time to time.

Section 11.3 Nothing contained in this Agreement shall impose upon t he Servicing

Carrier the obligation to perform services which are different in any material respect from the

services performed by the Servicing Carrier for its insureds in the voluntary market except as

required by the provisions of this Agreement, the Plan or any applicable legislation.

Section 11.4 Any notice or communication required to be furnished to the F.A. hereunder

or under the Plan shall be in writing and shall be delivered either by hand or by first class mail

addressed to the F.A. at 777 Bay Street, Suite 2400, 24th Floor, Toronto, Ontario M5G 2C8 or to

such other address as may be directed in writing. Any notice or communication required to be

given to the Servicing Carrier hereunder or under the Plan or under any applicable legislation shall

be delivered either by hand or in person or by mail addressed to the Servicing Carrier at its head

office or to such other address as it may have in writing directed.

Section 11.5 Neither this Agreement nor any term hereof may be changed, waived,

discharged, amended or terminated orally, but only by a document in writing signed by either or

both of the parties as appropriate.

Section 11.6 In the event that any article, section, sentence or clause of this Agreement

shall be declared invalid, illegal or unenforceable in any respect, the validity of the remaining

terms and provisions hereof and of the Plan shall in no w ay be affected or disturbed and such

invalid, illegal or unenforceable provision shall be severable from the balance of the Agreement.

Section 11.7 In the event the Servicing Carrier shall consider itself to be aggrieved as the

result of any action or failure to act of the F.A. under this Agreement or the Plan, the Board shall,

upon written demand by the Servicing Carrier specifying the details of such action or failure to act,

hear and determine all matters in connection therewith or relating thereto.

EXHIBIT 1-A

12 of 13

Section 11.8 This Agreement may be executed in several counterparts, each of which

shall be deemed an original, but all of which together shall constitute one and the same instrument.

Section 11.9 This Agreement is between the F.A. and the Servicing Carrier and no F.A.

insured, agent/broker, claimant or other person not a party to this Agreement, having or asserting a

claim against either the F.A., the Servicing Carrier or any agent or broker, shall have or acquire any

rights by reason of the execution and delivery of this Agreement.

Section 11.10 In the event of a conflict between this Agreement and the terms of the Plan,

the terms of the Plan shall govern.

This contract replaces all prior previous contracts or agreements.

IN WITNESS WHEREOF this Agreement has been duly signed, sealed and

delivered by the Parties the day and year above written.

Witnesses: THE FACILITY ASSOCIATION:

__________________________________ By: __________________________________ (Title) __________________________________ And: _________________________________ As to the “F.A.” (Title) Date: _________________________________ __________________________________ ___________________________________ (Servicing Carrier) __________________________________ By: __________________________________ As to the “Servicing Carrier” (Title) And: _________________________________ (Title) Date: _________________________________

EXHIBIT 1-A

13 of 13

Exhibit 3-A

Servicing Carrier Trial Balance Accounts (Exhibit 3-A)

Account No. Account Title Description

1000 Bank Balance The balance of cash and cash equivalents as at the

reporting date

1010 Unapplied Premium Premium payments which cannot be applied to customer

records at reporting date

1020 Premiums Receivable Outstanding amount of premium due from policyholders,

agents or brokers

1030 Allowance for Doubtful Accounts A contra-asset account used to reduce Accounts

Receivable to the amount that is expected to be collected

in cash

1040 Allocated Expense Recovery Facility Association funds used to settle claims expense

1050 Other Assets Other assets that are not classified above.

2000 Commissions Payable Commission owed to an agent or broker for the

completed services

2010 Outstanding Claims Draft The estimated amount of future loss payments (including

external adjustment expenses) relating to reported claims

2020 Uncashed Cheque Reserve Cheques that remain uncashed after six months

2030 Unearned Premiums Pro-rata portion of the premium in force applicable to

the unexpired period of the policy term

2040 Unpaid Claims Gross liability for unpaid claims including case reserve

and Incurred But Not Reported reserves

2050 Other Liabilities Other liabilities that are not classified as above, such as:

Service fee reimbursement to Servicing Carriers

(pertains to service fees deposited directly to Facility

Association's bank account through EFT).

2060 Retail Sales Tax Payable/(Receivable) Retail sales tax payable/receivable to the government

agency

3000 Transfer to/from Facility Association Amounts transfer to/from the Facility Association to the

Servicing Carrier

3010 Surplus/Income Summary Revenue and expense accounts are closed to this account

on a yearly basis

4000 Premiums Written Total premiums generated from all policies written by

the Servicing carrier within the reporting period

4005 Handling Fee/Interest Revenue Service fee charged to the insured to pay premiums by

monthly instalment

4010 Change in U.P.R. Change in unearned premiums during reporting period

4020 Paid Claims & Recoveries Claims paid and recovery received during reporting

period

4030 Change in Unpaid Claims Change in Unpaid Claims during reporting period

4040 Commissions The amount of commissions expense that pertains to the

revenues earned during reporting period

5000 Bad Debts All or portion of an account receivable considered to be

uncollectible

5010 Bank Charges Bank charges related to EFT, year-end bank

confirmation charges, overdraft charges

5020 Misc. Income/Expenses Other income and permitted expenses including policy

reinstatement fee, i.e. money received for the

reinstatement of policies previously cancelled

5030 DRA (Driver Record Abstract) Costs The amount paid to obtain Driver Record Abstracts

5040 Operating & Service Fee Expense Expenses reimbursed to Servicing Carriers for servicing

the policies

5050 Claims Service Fee Expense Expenses reimbursed to Servicing Carriers for handling

claims

1

Exhibit 3-B

Page 1

Servicing Carrier:

Servicing Carrier No:

Fiscal Year-to-Date as at: (Note: FARM Fiscal Year November 1st to October 31st)

Alberta NB NS P.E.I. Ontario NFLD Yukon N.W.T. Nunavut Unallocated TOTAL150 375 450 525 600 75 825 900 200 998

1000 -$ 1010 -$ 1020 -$ 1030 Allow. for Doubtful Accounts -$ 1040 Allocated Expense Recovery -$ 1050 -$ 2000 -$ 2010 -$ 2020 -$ 2030 -$ 2040 -$ 2050 -$ 2060 -$ 3000 -$ 3010 -$ 4000 -$ 4005 -$ 4010 -$ 4020 -$ 4030 -$ 4040 -$ 5000 -$ 5010 -$ 5020 -$ 5030 -$ 5040 -$ 5050 -$

- - - - - - - - - - -

Prepared By: Date Prepared: Approved By:

Claims Service FeesTotal

Operating and Service Fees

Surplus/Income SummaryPremiums WrittenHandling Fees/Interest Rev.Change in Unearned Prem.Paid Claims and RecoveriesChange in Unpaid ClaimsCommissions Bad DebtsBank ChargesMisc. Income/ExpenseM.V.R. Costs

Transfers To/From FA

Bank BalanceUnapplied PremiumPremiums Receivable

Other AssetsCommission PayableOutstanding Claim DraftUncashed Cheque reserveUnearned PremiumsUnpaid ClaimsOther LiabilitiesRetail Sales Tax Pay/Rec

Description

Facility Association Residual Market

Trial Balance of Servicing Carrier General Ledger Fiscal Year-To-Date

Select one from below

-

EXHIBIT 3-C

Page 1 of 2

Month of

1 Servicing Carrier: Select one from below

2 Servicing Carrier No: -

3 Bank

4 Branch:

5 Account Number(s):

6 Bank Balance as per General Ledger :

- Prior Month Ending Amou -$

RECEIPTS

7 Premium Amounts Received From Agents and Insureds

8 Loss Recoveries

9 Advances or Adjustments From Servicing Carrier

10 Funds Transferred From Facility Association Bank

11 TOTAL RECEIPTS -$

12 TOTAL UNCASHED CHEQUES AND DRAFTS WRITTEN OFF -$

DISBURSEMENTS

13 Claim Cheques / Drafts Issued

14 Reimbursement to Servicing Carrier

15 Agents Commission / Policy Refunds

16 Bank Service Charges

17 Cost of Driver Record Abstracts

18 Other Permitted Expenses / Income

19 Funds Transferred to F.A. Bank

20 Bank Adjustments

21 TOTAL DISBURSEMENTS -$

22 Bank Balance as per General Ledger - Current Month -$ (6+11+12-21=22)

Facility Accociation Residual Market

Servicing Carrier Monthly Cash Analysis and Bank Reconciliation

EXHIBIT 3-C

Page 2 of 2

23 Bank Statement Balance (Attach copy of statement) -$

24 General Ledger Balance - Balance in Bank (Item 22) -$

RECONCILIATION ITEMS

25 Deposits in Transit

26 Uncashed Cheques

27 Other: Cheque Cashed - Not Processed

28 TOTAL RECONCILIATION ITEMS -$

(23-24+28) -$

NON-CASH ITEMS - JOURNAL ENTRIES

29 Premium Bad Debts

30 Premium Receivable

31 Commission Bad Debts

32 Agents Commission Payable

33 Issued Uncashed Cheques / Drafts

34 Cash in Bank

35 TOTAL NON-CASH ITEMS -$


(Signature)

(Title)

(Date)

EXHIBIT 3-D

Servicing Carrier:


Month of:

Alberta New Brunswick Nova Scotia PEI Ontario Newfoundland Yukon N.W.T Nunavut TOTAL

(1) Written Premiums Excluding - Premiums Effective in Later Months

(2) Commission on Those Premiums -

(3) Earned Premiums -

(4) Allocated Claims Expense -

OPERATING / SERVICE FEES:

(5) Item #1 Multiplied by % - - - - - - - - - -


TOTAL OPERATING / SERVICE FEES -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

CLAIMS SERVICE FEES:


(8) Less Allocated Expense - - - - - - - - - - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

NET CLAIMS SERVICE FEES

(9) Collection Fee (Not Offset by Recoveries) -

TOTAL FEES DUE SERVICING CARRIER -$ -$ -$ -$ -$ -$ -$ -$ -$ -$


(Signature) (Title)

(Date)

Servicing Carrier Monthly Request For Service Fees


-

Exhibit 3-E

Servicing Carrier:


As at:

Over Over Over Over

Name No. 30 days 60 days 90 days 120 days

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$ -$ -$ -$ -$ -$

Prepared By: Date Prepared: Approved By:

Total

Facility Association Residual Market

Aged Premium Receivable Report


-

Agent / Broker

Total Current

EXHIBIT 3-F

Confirmed by:___________________

Date:__________________________

TO

Source Posting Debit Credit No of No of Outlet/Division Outlet/DivisionBranch Date Amount Amount Debits Credits Debit Total Credit Total Addendum

TRANSFER TRANSACTIONS

Facility Association Residual MarketCash Transfer Confirmation

For the Period:

Carrier

No

EXHIBIT 3-G

Page 1 of 2File: Exhibit 3-G.xlsx(Orig. LME)

30/11/12

Fiscal Year:

November December January February March April May June July August September October TotalsAlberta Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

New Brunswick Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Nova Scotia Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Prince Edward Island Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Ontario Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Newfoundland Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Yukon Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

N.W.T Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Nunavut Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total All Provinces Private Passenger 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00TOTAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

AGENTS COMMISSION

EXHIBIT 3-G

Page 2 of 2File: Exhibit 3-G.xlsx(Orig. LME)

30/11/12

Fiscal Year:

November December January February March April May June July August September October TotalsAlberta Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

New Brunswick Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Nova Scotia Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Prince Edward Island Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Ontario Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Newfoundland Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Yukon Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

N.W.T Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Nunavut Private Passenger 0.00 Other 0.00Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total All Provinces Private Passenger 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00TOTAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

WRITTEN PREMIUM

EXHIBIT 3-H

Servicing Carrier:

Sharing Month:

IBC StatisticalWritten Premium Commission Commission % Written Premium

Column a Column b Column c = b / a Column d Column e = d * c (e) - (b) d - a075 Nfld150 Alberta200 Nunavut375 NB450 NS525 PEI600 Ontario825 Yukon900 NWT

075 Nfld150 Alberta200 Nunavut375 NB450 NS525 PEI600 Ontario825 Yukon900 NWT

075 Nfld150 Alberta200 Nunavut375 NB450 NS525 PEI600 Ontario825 Yukon900 NWT

Grand Total

Facility Association Residual MarketCommission adjustment report by Servicing Carriers

Business Segment Jurisdiction

Submitted to FA Finance by SCs Commissions calculated Adjustment

Premium

Difference for information

Private Passenger (PPV)

Total of PPV

Non Private Passenger (NPP)

Total of NPP

PPV + NPP

FARM Exhibit 3-I

Aged Premiums Receivable Summary (Insert Company name & number)

Month Ending (Insert Date)

Current 31-60 Days 61-90 Days 91-120 Days 121-150 Days Over 150 Days Total

(see below for req'd comments & documentation)

Broker a/c's 0.00

Agency a/c's 0.00

Direct Writers 0.00

Monthly Pay Plan 0.00

Other Items (Please Explain ) 0.00

Premiums Receivable per Sub-ledger 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Reconciling Differences 0.00

Premiums Receivable per Trial Balance (a/#1020) 0.00

Percentage of Aged Amount to Total Amount #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Required Comments & Documentation

An itemized list for all amounts which are past due greater than 90 days

Each item must include comments as to their collectibllity

For those amounts over 150 days, deposit a cheque to your FA Bank a/c and send to Head Office documentation confirming the deposit

Provide an explanation if payment is not required (i.e bankruptcy, litigation or other)

Signature

Date

Finance and Member Services Department Unclaimed Property Guidelines and Procedures

Approved by: FA Audit and Risk Committee Effective: November 23, 2012

page 1 of 11 Exhibit 3-J

Unclaimed Property Guidelines and Procedures

Governance and Accounting

Facility Association Finance and Member Services




Contents

Section 1. Introduction ............................................................................................................................ 3

1.1 Purpose .......................................................................................................................................... 3

1.2 Scope .............................................................................................................................................. 3

1.3 Legislative Context ......................................................................................................................... 4

Section 2. Guidelines ............................................................................................................................... 4

2.1 Underlying Principles ..................................................................................................................... 4

2.2 Governance and Management ...................................................................................................... 4

2.2.1 Risk Management ................................................................................................................... 4

2.2.2 Responsibility for Regular Reviews and Compliance Verification .......................................... 5

2.2.3 Regular Audits ........................................................................................................................ 5

2.2.4 Reporting ................................................................................................................................ 5

Section 3. Procedures Supporting Facility Association Unclaimed Property Guidelines ........................ 6

3.1 Use of Servicing Carrier own procedures ...................................................................................... 6

3.2 Facility Association Internal Procedures ....................................................................................... 6

3.2.1 Determining and Recording Unclaimed Property – Uncashed Cheques ............................... 6

3.2.2 Re-classification of property from unclaimed to abandoned ................................................ 7

3.2.3 Regular Reporting ................................................................................................................... 7

3.2.4 Information and Record Retention ........................................................................................ 8

Section 4. Sample Verification Letter ...................................................................................................... 9

Section 5. Summary and assessment of provincial unclaimed property laws and regulations ........... 10

5.1 B.C. ............................................................................................................................................... 10

5.2 Alberta ......................................................................................................................................... 11

5.3 Quebec ......................................................................................................................................... 11




Section 1. Introduction

Unclaimed property is generally defined as a liability a company (the “holder”) owes to an individual or entity (the

“owner”) when a debt or obligation remains outstanding after a specified period of time. For insurance companies,

uncashed premium refund or claim cheques are a common type of unclaimed property. Where the payee (i.e. the

owner) does not extinguish the debt by cashing the cheque, their property right may be protected by provincial

unclaimed property (escheat) laws.

Companies as holders of unclaimed property undertake all reasonable options to locate the property’s rightful

owner through a process of due diligence and determine, as appropriate, whether there is a Canadian statutory

requirement to report the unclaimed property and whether and when the property may be deemed “abandoned” and

the liability becomes de-recognized by the holder.

For Facility Association, uncashed or unclaimed cheques are the major source of potential unclaimed property.

1.1 Purpose

This document represents Facility Association’s formal guidelines and associated procedures for identifying and

tracking potential unclaimed property, complying with applicable Canadian provincial reporting and remittance

requirements, and potentially de-recognizing the liability. While every effort is undertaken to ensure these

guidelines and the associated procedures are up-to-date, all applicable Canadian statutory requirements supersede

this document.

This document has been introduced to:

• define the conditions under which cheques will be tracked as “uncashed”;

• define the conditions under which cheques will be considered “unclaimed property”;

• define how substantive owner information will be obtained under applicable law, taking into consideration

applicable privacy issues;

• define the conditions under which “unclaimed property” will be de-recognized as a liability either via

transfer to a provincial authority or taken directly to income;

• identify who is authorised to recommend amounts to de-recognize; and

• ensure appropriate accounting procedures and internal controls are in place.

Please refer to section 1.3 on Canadian jurisdictions where Unclaimed Property Acts and Regulation are enacted

and in-force.

1.2 Scope

These guidelines and procedures apply to Facility Association’s central administrative office and to the following

as administered by Facility Association:

Residual Market

Uninsured Automobile Funds

Member companies using any of the Risk Sharing Pools (RSPs) are assumed to use their existing unclaimed

property policies and procedures, and that such policies and procedures are in compliance with applicable

Canadian federal and/or provincial laws and regulations, and are appropriately ensuring the disposition of any

deemed abandoned property is reported to Facility Association in accordance with instructions provided by Facility




Association.

1.3 Legislative Context

Unclaimed Property Acts and associated Regulations are in effect for British Columbia, Alberta and Quebec, with

the general goal being to aid owners in locating and claiming their property from holders of such. Please refer to

section 2.2.2respecting requirements to ensure these guidelines and associated procedures are kept current with

respect to applicable Canadian federal and/or provincial unclaimed property laws and regulations.

Section 2. Guidelines

Unless otherwise compelled due to Canadian federal and/or provincial unclaimed property laws and regulations,

Facility Association will consider unclaimed property to be abandoned (and therefore taken to income) as indicated

in the following table:

property value <=$250

property value >$250

taken to income after 3 yrs after 6 yrs

Facility Association will also retain and maintain supporting records and documentation for the time periods as

presented in the table.

property value <=$25,000

property value >$25,000

records retained for 10 yrs for 30 yrs

The time periods indicated in the above tables refers to the elapsed time from when the property is first classified

as unclaimed.

2.1 Underlying Principles

Facility Association will ensure reasonable steps are undertaken to notify owners of unclaimed property in a timely

fashion. Facility Association will ensure that sufficient records and information are kept regarding unclaimed

property such that it is possible to validate ownership when required and to ensure proper allocation of the impact

to Member Companies should the liability be re-classified as “abandoned” and therefore de-recognized.

Facility Association will ensure that it maintains awareness of, and is in compliance with, applicable Canadian

federal and/or provincial laws and regulations with respect to unclaimed property.

Facility Association will ensure that any process undertaken to re-classify unclaimed property as abandoned

property and the associated de-recognition of the liability follows applicable accounting principles and that proper

records are maintained.

All statutory requirements applicable to Canadian federal and/or provincial unclaimed property laws and

regulations take precedence over these guidelines in the event of any conflict.

2.2 Governance and Management

2.2.1 Risk Management

The primary risks associated with unclaimed property include, but are not limited to, financial (potential for fines




or increased expenditure due to an increase in required audits or other such activity), operational (fraudulent

owners), and reputational (loss of confidence of stakeholders in Facility Association’s management or Board due

to mismanagement of process or non-compliance with law, regulations, or accounting principles). Examples

include:

non-compliance with applicable Canadian federal and/or provincial unclaimed property laws and

regulations;

lack of proper records to evidencing compliance with applicable Canadian federal and provincial

unclaimed property laws and regulations;

non-compliance with applicable accounting principles;

lack of proper records evidencing compliance with applicable accounting principles;

lack of proper record keeping preventing the appropriate handling of accounts, recording of results, and/or

validation of property ownership; and

lack of proper record keeping resulting in the inappropriate determination of contingent liability where

unclaimed property has been re-classified as abandoned and the associated liability de-recognized.

These guidelines are meant to mitigate the exposure to and/or potential impact of such risks.

2.2.2 Responsibility for Regular Reviews and Compliance Verification

Facility Association management should review, on a regular basis (at least bi-annually), these guidelines and

associated procedures, along with applicable Canadian federal and provincial unclaimed property laws and

regulations, as well as applicable accounting principles, to verify compliance. This would include, as appropriate,

recommended updates to these guidelines and its associated procedures to ensure compliance. The results of the

review process should be reported as indicated in section 2.2.4.

2.2.3 Regular Audits

Facility Association Internal Audit should regularly audit against these guidelines and associated procedures, with

the frequency of such audits determined by the prioritization of the risk-based approach of the internal audit team,

taking into account an assessment of the associated risks of non-compliance with these guidelines and associated

procedures.

2.2.4 Reporting

Results of Facility Association management’s review of these guidelines and associated procedures as described in

section 2.2.2 should be discussed with the Facility Association Accounting Committee.

The following should be reported to the Facility Association Audit and Risk Committee1:

material changes to these guidelines and/or associated procedures, including a summary of the associated

discussion with Facility Association Accounting Committee; and

any material findings determined by the internal audit teams and as the result of the regular internal audits

with respect these guidelines and/or associated procedures, and any associated management comments.

Disposition of abandoned property on an annual basis

1 “Audit and Risk Committee” in this section refers to the Facility Association Audit and Risk Committee, or other such body as directed by the Facility Association Board of Directors. For ease of reference, said body will be referred to as the “Audit and Risk Committee” in this section.




Any material non-compliance with these guidelines and/or associated procedures should be reported to the Audit

and Risk Committee along with any plans for remediation. Such remediation plans should be regularly followed

up with the Audit and Risk Committee until such time as deemed by the Audit and Risk Committee as being

completed.

Section 3. Procedures Supporting Facility Association Unclaimed Property Guidelines

Accounts and related financial information maintained by Servicing Carriers on behalf of the Facility Association

will be subjected to specified audit procedures by servicing carriers’ external auditors. Regular audits may also be

conducted by Facility Association’s internal audit function throughout the year.

3.1 Use of Servicing Carrier own procedures

For Facility Association Residual Market business, Servicing Carriers may elect to follow their internal procedures

as long as they meet the following minimum requirements:

follow the Facility Association procedure for determining and recording (classifying) unclaimed property

(uncashed cheques) as described in section 3.2.1;

are in compliance with Facility Association’s guidelines on Unclaimed Property;

capture and retain sufficient data of the property owner in order to validate ownership and/or report under

applicable Canadian federal and/or provincial unclaimed property law or regulation, where such

information would include but not be limited to information as outlined in section 3.2.4;

unclaimed property records and/or abandoned property records are maintained for periods as stipulated in

applicable Canadian federal or provincial law or regulation; where no such law or regulation exists,

records are maintained as identified in section 3.2.4;

annually report unclaimed property re-classified as abandoned in detail/format acceptable to Facility

Association management;

at the same time, annually confirm compliance with applicable Canadian federal or provincial unclaimed

property law or regulations; and

include Facility Association management in any correspondence with Canadian federal or provincial

bodies in relation to unclaimed property where Facility Association is the holder to such property.

Facility Association will regularly audit Servicing Carriers unclaimed property procedures to ensure they meet the

minimum standards as set above.

3.2 Facility Association Internal Procedures

3.2.1 Determining and Recording Unclaimed Property – Uncashed Cheques

After a six-month time period, stale-dated cheques are voided and removed from the outstanding list. Accounting

entries are generated to re-classify the uncashed cheque to an uncashed cheque account. Simultaneously, the

payee/cheque information is recorded in the unclaimed property database maintained by Facility Association

accounting. For general disbursement and payroll accounts, the payee and cheque data is electronically uploaded

to the unclaimed property database. For all other chequing accounts, the assigned “chequing account reconciler”

provides the payee/cheque data in a pre-formatted spreadsheet that is uploaded to the database.




1. Monthly review process

When cheques are stale-dated, Facility Association accounting generates and reviews a report detailing

selected payee information. As it relates to the property in question, the reviewer records appropriate

information as needed, including but not necessarily limited to information as outlined in section 3.2.4.

2. Verification letters

After the monthly review process is complete, Facility Association accounting generates verification

letters to payees for cheques of $250 or more, and mails them within 30 days of classifying the property as

unclaimed (see example letter in section 4). The verification letter contains the payee's name and address

on record, cheque number, and date of cheque, voucher number, description if available, and a contact

person for related questions (see 3 below). The letter also contains a section for the payee to certify that

the cheque was either lost or never received. Verification letters are not sent to payees for cheques of less

than $250, or as stipulated in applicable Canadian federal or provincial unclaimed property law or

regulations.

3. Contact information

If the payee has questions about the cheque, inquiries are directed to the contact person specified in the

letter for additional information. The contact person is responsible for answering any questions and

reissuing all cheques as applicable.

4. Replacement cheques

Upon receipt of the signed letter from the payee to certify that the cheque was either lost or never received,

Facility Association will issue a replacement cheque. The replacement cheque is charged to the uncashed

cheque account. The associated payee information is provided to Facility Association accounting and

entered into the unclaimed property database for matching of payee and amount with the original payment.

A replacement cheque will not be issued without the signed letter and only after the original cheque has

been stale-dated and reviewed in the normal course

5. Final follow up

If required by applicable Canadian federal and/or provincial unclaimed property laws or regulations, a

final attempt is made to contact the owner by letter sent to their last known address. This due diligence

letter is generated and sent by Facility Association accounting. If the payee responds, apply procedure 4

above.

3.2.2 Re-classification of property from unclaimed to abandoned

If all efforts to contact the owner of the unclaimed property as outlined in section 3.2.1 above have been

unsuccessful, and the applicable dormancy period as been surpassed, unclaimed property may be reclassified as

abandoned property. Subject to compliance with Canadian federal or provincial law and regulations procedures

(see section Section 5), uunclaimed property will be re-classified to abandoned and therefore taken into income:

(i) after 3 years have elapsed since the property under consideration was first classified as unclaimed, where the

property value is less than or equal to $250; or

(ii) after 6 years have elapsed since the property under consideration was first classified as unclaimed, where the

property value is greater than $250.

3.2.3 Regular Reporting

Facility Association accounting will generate reports showing the monthly activity and the month-end unclaimed

property database balance, reconciled with the uncashed cheque account. Facility Association accounting will




prepare any associated reports as required by applicable Canadian and/or Provincial law or regulation, and as

requested by the Audit and Risk Committee and Accounting Committees in support of their responsibility to

review and/or approve management’s recommendations.

3.2.4 Information and Record Retention

Unclaimed property information needs to be retained in sufficient detail and over the appropriate duration to allow

for such things as property owner identification, , audit, and evidence of compliance with the Facility Association

Unclaimed Property Guidelines and applicable Canadian federal or provincial law or regulation.

To this end, the Facility Association unclaimed property database should capture and retain sufficient data of the

property owner in order to validate ownership and/or report under applicable Canadian federal and/or provincial

unclaimed property law or regulation, where such information would include but not be limited to (as relates to the

property in question):

property owner name and last known address;

description of the unclaimed property (including a description of the act that gave rise to the unclaimed

property);

insurance policy number or identifier, effective date, refund date (as applicable);

claim number or identifier, date of loss (as applicable);

all correspondence with property owner;

value of the property and related cheque numbers and issue dates (as applicable);

any monies owed by the owner to the Facility Association;

applicable jurisdiction (as per last known address or where the act giving rise to the property occurred);

the determination of applicable Canadian federal and/or provincial Unclaimed Property Laws and

Regulations that apply; and

diary of next action required, including date action required.

Unclaimed property records and/or abandoned property records are maintained for periods as stipulated in

applicable Canadian federal or provincial law or regulation; where no such law or regulation exists, records are

maintained as identified below:

(i) 10 years from when the property is first classified as unclaimed, where the property value is less than or

equal $25,000; or

(ii) 30 years from when the property is first classified as unclaimed, where the property value is greater than

$25,000.




Section 4. Sample Verification Letter

<Current Date>

<Name Of Payee> <Address of Payee>

RE: Property Type: UNCLAIMED PROPERTY CHEQUE Issue date of cheque Cheque Number> $<Amount of Cheque>

I

The above referenced cheque has been found in our records as unclaimed property.

Kindly complete the section below so we can send you a replacement cheque

Yes, this payment is still due.

No, this payment has been settled or I am not entitled to receive this payment

Name (if different than above): ____________________________________________

New Mailing Address

___________________________________________

___________________________________________ ___________________________________________ Signature: ____________________________________________ Date: _____________ If you have any questions please feel free to contact the undersigned. Sincerely yours, FA <Title> <Address> <Telephone> <Fax Number>

<e-mail address>




Section 5. Summary and assessment of provincial unclaimed property laws and regulations

5.1 B.C.

Unclaimed Property Act [SBC 1999], assented to July 15, 1999

Part 1 1 “property” means:

…

(d) the right to an amount due and payable by an insurer under the terms of an insurance policy,

including an annuity and a refund of premiums,

…

As such, uncashed claims cheques and premium refund cheques are considered “property” within the law.

“Part 3 – Unclaimed Property Held by Holders” then applies, addressing the issues of:

which property owners are subject to this Law (as applicable to Facility Association, last known address is

in B.C. and the initial payment was initiated after July 1, 2000);

duty of holders to make reasonable efforts to locate and notify owners;

duty of holders to maintain a database of unclaimed property, including prescribed particulars and

reasonable efforts to ensure the existence of the database and means to access it are known to the public;

eventual treatment of unclaimed property as income of the holder.

The associated Unclaimed Property Regulation came into force April 2001. Part 3 outlines:

exempt classes of holders (as applies to Facility Association, where property value is under $50);

prescribed time periods (3 yrs since cheque sent)

requirement to establish written policies and procedures respecting what constitutes reasonable efforts to

locate and notify owners and make available to the public said policies and procedures;

allowable data to be made available to the public in order to search the unclaimed property database

(limited to name only; date property became unclaimed, and property identification number to be

provided);

data to collect and hold for periods identified below:

(i) after 6 years have elapsed since the property under consideration became Unclaimed Property

and the amount is less than $1000.00;

(ii) after 10 years have elapsed since the property under consideration became Unclaimed Property

and the amount is between $1000.00 and 24,999.99; and,

(iii) after 30 years have elapsed since the property under consideration became Unclaimed Property

and the amounts more than $24,999.99.

establish and make public point of contact for owner, and how to make a claim; have procedure for

reviewing and processing claims including appeal process for denied claims.

prescribed periods when property may be treated as income to the holder:




(i) after 6 years have elapsed since the property under consideration became Unclaimed Property

and the amount is less than $1000.00;

(ii) after 10 years have elapsed since the property under consideration became Unclaimed Property

and the amount is between $1000.00 and 24,999.99; and,

(iii) after 30 years have elapsed since the property under consideration became Unclaimed Property

and the amounts more than $24,999.99.

5.2 Alberta

Unclaimed Personal Property and Vested Property Act, effective September 1, 2008

Intangible property valued at $250 or more falls into this Act which includes cheques. The Act applies to owners

where their last known address is in Alberta (and the holder, Facility Association, carries on business in Alberta –

different rules would apply if Facility was physically located in Alberta).

Holders must decide when property becomes unclaimed but the time period for calculating when the property is

considered abandoned began on Sept 1, 2008. Abandoned property is transferred to the Tax and Revenue

Administration (TRA) on behalf of Alberta Finance. The holder is responsible to:

between three and eight months prior to the property being transferrable to the TRA, send a final statement

to the owner)

prepare Holder Report forms listing all unclaimed property as at December 31 each year within 120 days

of year-end;

According to the associated regulation (also effective September 1, 2008), property is considered abandoned: "5

years after the earlier of (i) the date on which the apparent owner's right to demand the personal property arises,

and (ii) the date on which the obligation to pay or distribute the personal property arises. The regulation also

stipulates language required in the notice letter to the property owner.

5.3 Quebec

Unclaimed Property Act [Bill 6, 2011], assented to June 13, 2011

The Act indicates in Section 3 “The following property is considered to be unclaimed property if the owner or

other right-holder is domiciled in Quebec:” … “(2) the value of cheques … three years following date of … issue”.

Section 4 indicates “A right-holder is deemed to be domiciled in Quebec if the right-holder’s last known address is

in Quebec, or, where the address is unknown, if the act establishing the right-holder’s rights was made in Quebec”.

Unclaimed property is transferred annually to the Quebec Minister of Revenue; six months preceding transfer, a

final attempt to notify the owner is required, giving 3 months notice. Late transfers are subject to interest. Holders

must maintain a database of the unclaimed property, including the date the property was transferred to the

Minister; with the associated data maintained for 10 years.

AS AT: Month Year

FACILITY ASSOCIATION RESIDUAL MARKET MONTHLY (ACCIDENT YEAR) MEMBER PARTICIPATION REPORT

FA System 5/28/2010 1:05:18 AM EST

© 2010 Facility Association. All rights reserved.

Page 1 of 26

Driver Record Abstracts 21,324 71 -5 0 0 0 21,390

Administration Expense 40,223 135 -9 0 0 0 40,349

Bad Debts -343 -3 -1 -1 0 0 -348

Change in Premium Deficiency/(DPAC) -12,759 0 0 0 0 0 -12,759

Operating & Service Fee 170,893 579 -35 3 0 0 171,440

Agents Commissions 204,176 693 -40 3 0 0 204,832

General Expenses 423,514 1,475 -90 5 0 0 424,904

Distributed to Member 0 0 0 0 0 0 0

Funds held by FA/(Members) -220,370 315,691 -19,219 63,298 -239,928 -108,654 -209,181

Operating Results -220,370 315,691 -19,219 63,298 -239,928 -108,654 -209,181

Premium Finance Fee -156 -2 -1 -1 0 0 -160

Investment Income 1,158 0 0 0 0 0 1,158

Paid Loss 176,942 125,259 8,252 6,779 18,795 206,888 542,915

Premium Earned 1,389,191 5,105 -295 29 0 0 1,394,031

Premium Written 1,529,405 5,105 -295 29 0 0 1,534,244

Change in Unearned Premium -140,213 0 0 0 0 0 -140,213

Change in Outstanding Loss 746,374 -152,616 64,591 8,036 202,429 -309,484 559,330

Change in Retro Claims Expense -5,745 18,983 1,414 1,055 143 5,431 21,281

Claims and Adj. Expenses Incurred 1,187,049 -312,063 19,013 -63,275 239,928 108,654 1,179,306

Claim Service Fee 206,292 -157,475 -491 -989 19,842 394,075 461,254

Change in IBNR Provision 63,186 -146,214 -54,753 -78,156 -1,281 -188,256 -405,474

O/S Loss Transition Adjustment 0 0 0 0 0 0 0

Jurisdiction: Private Passenger

Company :

FARM Total (Current Month)2011 &2010

2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

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Typewritten Text

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Typewritten Text

AS AT: Month Year

FACILITY ASSOCIATION RESIDUAL MARKETMONTHLY (ACCIDENT YEAR) MEMBER PARTICIPATION REPORT

FA System 5/28/2010 1:05:19 AM EST


Page 2 of 26

Driver Record Abstracts 87,238 3,697 -127 -75 7 11 90,751

Administration Expense 117,535 5,048 -212 -124 10 13 122,270

Bad Debts -35,516 -831 299 127 -9 -11 -35,941

Change in Premium Deficiency/(DPAC) -714,624 756,899 0 0 0 0 42,275

Operating & Service Fee 684,139 37,102 -1,587 -951 92 102 718,897

Agents Commissions 614,191 27,169 -2,162 -1,249 94 43 638,086

General Expenses 752,963 829,084 -3,789 -2,272 194 158 1,576,338

Distributed to Member 0 4,510,839 1,803,263 1,190,771 -1,564,099 400,066 6,340,840

Funds held by FA/(Members) 1,010,718 -3,436,109 -1,651,261 -1,348,939 1,391,153 -354,230 -4,388,668

Operating Results 1,010,718 1,074,730 152,002 -158,168 -172,946 45,836 1,952,172

Premium Finance Fee -740 -54 -3 -1 -4 -6 -808

Investment Income 4,536 6,674 0 0 0 0 11,210

Paid Loss 290,028 1,391,189 23,512 86,814 274,886 4,864,108 6,930,537

Premium Earned 3,985,039 2,909,592 -12,982 -7,945 825 922 6,875,451

Premium Written 6,100,202 329,877 -12,982 -7,945 825 922 6,410,899

Change in Unearned Premium -2,115,163 2,579,715 0 0 0 0 464,552

Change in Outstanding Loss 1,079,371 -412,984 -54,977 238,448 -81,819 -4,232,929 -3,464,890

Change in Retro Claims Expense -18,745 4,496 1,529 969 -7,780 -102,631 -122,162

Claims and Adj. Expenses Incurred 2,225,154 1,012,398 -161,198 152,494 173,573 -45,078 3,357,343

Claim Service Fee 544,044 267,903 -8,476 -5,723 21,907 725,078 1,544,733

Change in IBNR Provision 330,456 -238,206 -122,786 -168,014 -33,621 -1,298,704 -1,530,875



Company :

FARM Total (Fiscal Year To Date)2011 &2010

2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:20 AM EST


Page 3 of 26

Operating Results -500,705 5,125,608 5,841,128 7,354,756 3,801,682 190,384,563 212,007,032Investment Income 4,536 47,048 78,866 184,572 414,265 102,146,509 102,875,796

Distributed to Member 0 12,737,325 8,654,151 9,941,184 7,454,062 213,666,221 252,452,943

Premium Finance Fee -1,362 -2,032 -1,712 -1,701 -3,436 828,148 817,905

Bad Debts -43,754 -20,754 -18,313 -2,982 -1,261 196,454 109,390

Administration Expense 212,203 346,208 298,213 169,369 177,441 9,990,185 11,193,619

General Expenses 2,263,764 4,636,669 4,736,083 4,825,744 7,258,664 223,497,634 247,218,558

Funds held by FA/(Members) -500,705 -7,611,717 -2,813,023 -2,586,428 -3,652,380 -23,281,658 -40,445,911

IBNR Provision 330,456 1,566,451 1,560,350 1,068,520 575,756 3,599,337 8,700,870

Outstanding Loss 1,079,371 1,509,676 1,649,811 2,240,037 3,240,261 17,442,154 27,161,310

Total Outstanding 1,391,082 3,008,110 3,319,575 2,946,612 4,022,160 22,772,922 37,460,461Retro Claim Expense Provision -18,745 -68,017 109,414 -361,945 206,143 1,731,431 1,598,281

FARM Total(Balance Sheet Amounts)

Premium Deficiency/(DPAC) -714,624 0 0 0 0 0 -714,624

Unearned Premium 7,853,017 0 0 0 0 0 7,853,017

Driver Record Abstracts 153,070 209,931 139,151 111,192 328,792 10,135,590 11,077,726

Paid Loss 290,028 4,015,322 6,051,610 7,273,760 14,856,877 687,739,095 720,226,692


IBNR Provision 330,456 1,566,451 1,560,350 1,068,520 575,756 3,599,337 8,700,870

Premium Written 11,838,056 18,760,986 21,831,221 24,416,851 34,149,029 956,443,163 1,067,439,306

Change in Unearned Premium -7,853,017 0 0 0 0 0 -7,853,017

Premium Earned 3,985,039 18,760,986 21,831,221 24,416,851 34,149,029 956,443,163 1,059,586,289

O/S Loss Transition Adjustment 0 0 0 0 0 -183,675,291 -183,675,291

Operating & Service Fee 1,360,904 2,257,738 2,211,118 2,199,986 3,389,990 102,413,069 113,832,805

Agents Commissions 1,295,965 1,843,546 2,105,914 2,348,179 3,363,702 100,762,336 111,719,642


Claim Service Fee 544,044 2,020,293 1,959,979 2,198,850 4,620,475 118,698,897 130,042,538

Retro Claim Expense Provision -18,745 -68,017 109,414 -361,945 206,143 1,731,431 1,598,281

Claims and Adj. Expenses Incurred 2,225,154 9,043,725 11,331,164 12,419,222 23,499,512 645,535,623 704,054,400


Company :

FARM Total (All Years To Date)2011 &2010

2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:21 AM EST


Page 4 of 26

Undiscounted Future Cost on Unearned 3,918,655 0 0 0 0 0 3,918,655

Undiscounted Premium Deficiency/(DPAC) -714,624 0 0 0 0 0 -714,624

PFAD Included IBNR Provision 106,827 411,326 362,833 333,153 406,341 2,257,369 3,877,849

Undiscounted Retro Claim Expense -18,745 -68,017 109,414 -361,945 206,143 1,731,431 1,598,281

Undiscounted IBNR Provision 272,942 1,347,033 1,339,735 856,350 291,920 1,972,744 6,080,724

Future Cost on Unearned Premium 4,107,127 0 0 0 0 0 4,107,127

FARM Total(Memo Items)


Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:22 AM EST


Page 5 of 26

Driver Record Abstracts 58,140 -159 -63 -67 -99 -8 57,744

Administration Expense 109,673 -301 -118 -127 -187 -14 108,926

Bad Debts -961 1 0 1 1 0 -958

Change in Premium Deficiency/(DPAC) 28,140 0 0 0 0 0 28,140

Operating & Service Fee 466,100 -1,272 -498 -537 -792 -57 462,944

Agents Commissions 350,273 -956 -375 -404 -595 -43 347,900

General Expenses 1,011,365 -2,687 -1,054 -1,134 -1,672 -122 1,004,696


Funds held by FA/(Members) 1,208,831 1,119,700 86,016 -63,654 146,192 -245,500 2,251,585

Operating Results 1,208,831 1,119,700 86,016 -63,654 146,192 -245,500 2,251,585

Premium Finance Fee -450 0 0 0 0 0 -450


Paid Loss 775,197 579,014 187,818 106,237 100,960 97,828 1,847,054

Premium Earned 5,049,038 -11,171 -4,381 -4,718 -6,960 -496 5,021,312

Premium Written 4,717,977 -11,171 -4,381 -4,718 -6,960 -496 4,690,251

Change in Unearned Premium 331,061 0 0 0 0 0 331,061

Change in Outstanding Loss 1,142,364 -505,216 -173,067 100,042 -217,714 -119,180 227,229

Change in Retro Claims Expense -23,497 72,334 7,458 5,579 -430 3,183 64,627

Claims and Adj. Expenses Incurred 2,830,592 -1,128,184 -89,343 60,070 -151,480 245,126 1,766,781

Claim Service Fee 468,826 -706,024 -7,298 -10,391 20,379 162,351 -72,157

Change in IBNR Provision 467,702 -568,292 -104,254 -141,397 -54,675 100,944 -299,972


Jurisdiction: Non Private Passenger

Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:22 AM EST


Page 6 of 26

Driver Record Abstracts 218,236 6,796 -185 23 -99 -8 224,763

Administration Expense 290,309 8,813 -238 -23 -187 -14 298,660

Bad Debts -78,042 -2,676 15 -57 -1 -2 -80,763

Change in Premium Deficiency/(DPAC) -2,122,022 2,800,399 0 0 0 0 678,377

Operating & Service Fee 1,645,024 65,665 -1,170 121 -788 -55 1,708,797

Agents Commissions 1,429,465 61,394 -954 40 -590 -41 1,489,314

General Expenses 1,382,970 2,940,391 -2,532 104 -1,665 -120 4,319,148

Distributed to Member 0 7,822,549 -2,254,914 -1,723,004 -3,867,400 896,837 874,068

Funds held by FA/(Members) 7,189,480 -5,509,716 1,811,813 1,571,012 4,124,474 -1,084,092 8,102,971

Operating Results 7,189,480 2,312,833 -443,101 -151,992 257,074 -187,255 8,977,039

Premium Finance Fee -1,935 -92 -3 -7 -2 -2 -2,041


Paid Loss 1,047,496 6,293,556 1,307,944 672,182 1,938,724 1,661,210 12,921,112

Premium Earned 14,860,275 10,767,046 -10,168 903 -6,911 -470 25,610,675

Premium Written 16,994,260 652,154 -10,168 903 -6,911 -470 17,629,768

Change in Unearned Premium -2,133,985 10,114,892 0 0 0 0 7,980,907

Change in Outstanding Loss 2,223,259 -819,183 -471,621 -251,568 -1,917,107 -1,238,655 -2,474,875

Change in Retro Claims Expense -89,497 3,952 7,492 5,094 -17,323 -53,984 -144,266

Claims and Adj. Expenses Incurred 6,294,506 5,524,827 435,462 152,784 -262,322 186,903 12,332,160

Claim Service Fee 1,326,478 308,145 -13,596 -3,962 23,705 336,502 1,977,272

Change in IBNR Provision 1,786,770 -261,643 -394,757 -268,962 -290,321 -518,170 52,917



Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:22 AM EST


Page 7 of 26

Operating Results 2,468,577 17,340,483 16,721,951 22,002,245 17,273,893 111,284,414 187,091,563Investment Income 8,616 70,370 106,222 899,290 571,093 36,027,728 37,683,319


Premium Finance Fee -4,173 -4,122 -5,711 -5,411 -2,249 275,643 253,977

Bad Debts -101,785 -29,057 -44,544 -4,784 -847 141,663 -39,354

Administration Expense 604,768 835,868 984,053 538,639 178,136 3,428,677 6,570,141


Funds held by FA/(Members) 2,468,577 -32,144,758 -10,766,853 -6,268,867 -7,934,963 -17,378,634 -72,025,498

IBNR Provision 1,786,770 7,444,715 3,800,722 2,380,854 1,814,851 1,848,927 19,076,839


Total Outstanding 3,920,532 13,388,615 11,469,677 6,606,096 7,502,385 18,844,287 61,731,592Retro Claim Expense Provision -89,497 -308,666 358,458 -1,216,421 465,570 901,183 110,627


Premium Deficiency/(DPAC) -2,122,022 0 0 0 0 0 -2,122,022



Paid Loss 1,047,496 17,293,500 25,444,996 29,539,409 34,715,290 208,878,348 316,919,039


IBNR Provision 1,786,770 7,444,715 3,800,722 2,380,854 1,814,851 1,848,927 19,076,839

Premium Written 39,825,240 66,679,986 76,209,379 78,916,622 73,970,678 393,682,882 729,284,787


Premium Earned 14,860,275 66,679,986 76,209,379 78,916,622 73,970,678 393,682,882 704,319,822





Claim Service Fee 1,326,478 5,715,631 6,856,982 7,118,322 5,169,358 34,245,235 60,432,006

Retro Claim Expense Provision -89,497 -308,666 358,458 -1,216,421 465,570 901,183 110,627

Claims and Adj. Expenses Incurred 6,294,506 36,397,746 43,771,655 43,263,827 47,387,033 242,734,031 419,848,798


Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:23 AM EST


Page 8 of 26


Undiscounted Premium Deficiency/(DPAC) -2,122,022 0 0 0 0 0 -2,122,022

PFAD Included IBNR Provision 425,358 1,762,879 1,283,668 878,364 983,753 1,804,369 7,138,391

Undiscounted Retro Claim Expense -89,497 -308,666 358,458 -1,216,421 465,570 901,183 110,627

Undiscounted IBNR Provision 1,544,145 6,504,324 3,048,132 1,835,852 1,113,530 563,657 14,609,640




Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:23 AM EST


Page 9 of 26

Driver Record Abstracts 79,464 -88 -68 -67 -99 -8 79,134

Administration Expense 149,896 -166 -127 -127 -187 -14 149,275

Bad Debts -1,304 -2 -1 0 1 0 -1,306

Change in Premium Deficiency/(DPAC) 15,381 0 0 0 0 0 15,381

Operating & Service Fee 636,993 -693 -533 -534 -792 -57 634,384

Agents Commissions 554,449 -263 -415 -401 -595 -43 552,732

General Expenses 1,434,879 -1,212 -1,144 -1,129 -1,672 -122 1,429,600


Funds held by FA/(Members) 988,461 1,435,390 66,798 -355 -93,736 -354,154 2,042,404

Operating Results 988,461 1,435,390 66,798 -355 -93,736 -354,154 2,042,404

Premium Finance Fee -606 -2 -1 -1 0 0 -610


Paid Loss 952,139 704,273 196,070 113,016 119,755 304,716 2,389,969

Premium Earned 6,438,229 -6,067 -4,675 -4,688 -6,960 -496 6,415,343

Premium Written 6,247,381 -6,067 -4,675 -4,688 -6,960 -496 6,224,495

Change in Unearned Premium 190,848 0 0 0 0 0 190,848

Change in Outstanding Loss 1,888,738 -657,832 -108,476 108,078 -15,285 -428,664 786,559

Change in Retro Claims Expense -29,242 91,317 8,872 6,634 -287 8,614 85,908

Claims and Adj. Expenses Incurred 4,017,641 -1,440,247 -70,330 -3,205 88,448 353,780 2,946,087

Claim Service Fee 675,118 -863,499 -7,789 -11,380 40,221 556,426 389,097

Change in IBNR Provision 530,888 -714,506 -159,007 -219,553 -55,956 -87,312 -705,446


Jurisdiction: Private and Non Private Passenger Combined

Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:24 AM EST


Page 10 of 26

Driver Record Abstracts 305,474 10,493 -312 -52 -92 3 315,514

Administration Expense 407,844 13,861 -450 -147 -177 -1 420,930

Bad Debts -113,558 -3,507 314 70 -10 -13 -116,704

Change in Premium Deficiency/(DPAC) -2,836,646 3,557,298 0 0 0 0 720,652

Operating & Service Fee 2,329,163 102,767 -2,757 -830 -696 47 2,427,694

Agents Commissions 2,043,656 88,563 -3,116 -1,209 -496 2 2,127,400

General Expenses 2,135,933 3,769,475 -6,321 -2,168 -1,471 38 5,895,486

Distributed to Member 0 12,333,388 -451,651 -532,233 -5,431,499 1,296,903 7,214,908

Funds held by FA/(Members) 8,200,198 -8,945,826 160,552 222,073 5,515,627 -1,438,322 3,714,303

Operating Results 8,200,198 3,387,562 -291,099 -310,160 84,128 -141,419 10,929,211

Premium Finance Fee -2,675 -146 -6 -8 -6 -8 -2,849


Paid Loss 1,337,524 7,684,745 1,331,456 758,996 2,213,610 6,525,318 19,851,649

Premium Earned 18,845,314 13,676,637 -23,150 -7,042 -6,086 452 32,486,126

Premium Written 23,094,462 982,030 -23,150 -7,042 -6,086 452 24,040,667

Change in Unearned Premium -4,249,148 12,694,607 0 0 0 0 8,445,459

Change in Outstanding Loss 3,302,630 -1,232,167 -526,598 -13,120 -1,998,926 -5,471,584 -5,939,765

Change in Retro Claims Expense -108,242 8,448 9,021 6,063 -25,103 -156,615 -266,428

Claims and Adj. Expenses Incurred 8,519,660 6,537,225 274,264 305,278 -88,749 141,825 15,689,503

Claim Service Fee 1,870,522 576,048 -22,072 -9,685 45,612 1,061,580 3,522,005

Change in IBNR Provision 2,117,226 -499,849 -517,543 -436,976 -323,942 -1,816,874 -1,477,958



Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:24 AM EST


Page 11 of 26

Operating Results 1,967,872 22,466,091 22,563,079 29,357,001 21,075,575 301,668,977 399,098,595Investment Income 13,152 117,418 185,088 1,083,862 985,358 138,174,237 140,559,115


Premium Finance Fee -5,535 -6,154 -7,423 -7,112 -5,685 1,103,791 1,071,882

Bad Debts -145,539 -49,811 -62,857 -7,766 -2,108 338,117 70,036

Administration Expense 816,971 1,182,076 1,282,266 708,008 355,577 13,418,862 17,763,760


Funds held by FA/(Members) 1,967,872 -39,756,475 -13,579,876 -8,855,295 -11,587,343 -40,660,292 -112,471,409

IBNR Provision 2,117,226 9,011,166 5,361,072 3,449,374 2,390,607 5,448,264 27,777,709


Total Outstanding 5,311,614 16,396,725 14,789,252 9,552,708 11,524,545 41,617,209 99,192,053Retro Claim Expense Provision -108,242 -376,683 467,872 -1,578,366 671,713 2,632,614 1,708,908





Paid Loss 1,337,524 21,308,822 31,496,606 36,813,169 49,572,167 896,617,443 1,037,145,731


IBNR Provision 2,117,226 9,011,166 5,361,072 3,449,374 2,390,607 5,448,264 27,777,709

Premium Written 51,663,296 85,440,972 98,040,600 103,333,473 108,119,707 1,350,126,045 1,796,724,093


Premium Earned 18,845,314 85,440,972 98,040,600 103,333,473 108,119,707 1,350,126,045 1,763,906,111





Claim Service Fee 1,870,522 7,735,924 8,816,961 9,317,172 9,789,833 152,944,132 190,474,544

Retro Claim Expense Provision -108,242 -376,683 467,872 -1,578,366 671,713 2,632,614 1,708,908

Claims and Adj. Expenses Incurred 8,519,660 45,441,471 55,102,819 55,683,049 70,886,545 888,269,654 1,123,903,198


Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:25 AM EST


Page 12 of 26


Undiscounted Premium Deficiency/(DPAC) -2,836,646 0 0 0 0 0 -2,836,646

PFAD Included IBNR Provision 532,185 2,174,205 1,646,501 1,211,517 1,390,094 4,061,738 11,016,240

Undiscounted Retro Claim Expense -108,242 -376,683 467,872 -1,578,366 671,713 2,632,614 1,708,908

Undiscounted IBNR Provision 1,817,087 7,851,357 4,387,867 2,692,202 1,405,450 2,536,401 20,690,364




Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:26 AM EST


Page 13 of 26

Driver Record Abstracts 210 1 0 0 0 0 211

Change in Premium Deficiency/(DPAC) -125 0 0 0 0 0 -125

Bad Debts -3 0 0 0 0 0 -3

Administration Expense 395 2 0 0 0 0 397

Claims and Adj. Expenses Incurred 11,663 -3,068 188 -691 2,996 2,189 13,277

Agents Commissions 2,006 7 0 0 0 0 2,013


Operating Results -2,165 3,103 -190 692 -2,996 -2,189 -3,745

Funds held by FA/(Members) -2,165 3,103 -190 692 -2,996 -2,189 -3,745Distributed to Member 0 0 0 0 0 0 0

General Expenses 4,163 15 -1 0 0 0 4,177

Investment Income 12 0 0 0 0 0 12


Change in Retro Claims Expense -56 187 14 12 2 16 175

Premium Written 15,027 50 -3 1 0 0 15,075


Premium Earned 13,650 50 -3 1 0 0 13,698

Member Vehicle Count 21,715 21,715 21,715 23,051 24,925 44,767

Member Percentage 0.982543 0.982543 0.982543 1.092797 1.248162

Change in IBNR Provision 621 -1,437 -538 -854 -16 -1,149 -3,373


Claim Service Fee 2,026 -1,548 -4 -11 248 1,459 2,170

Paid Loss 1,739 1,230 81 74 235 2,182 5,541

Change in Outstanding Loss 7,333 -1,500 635 88 2,527 -319 8,764


Company :

Share (Current Month)2011 &2010

2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:27 AM EST


Page 14 of 26

Driver Record Abstracts 857 37 -1 -1 0 1 893

Change in Premium Deficiency/(DPAC) -7,021 7,437 0 0 0 0 416

Bad Debts -349 -8 3 1 0 -1 -354

Administration Expense 1,155 50 -2 -1 0 0 1,202

Claims and Adj. Expenses Incurred 21,863 9,946 -1,584 1,666 2,166 1,642 35,699

Agents Commissions 6,035 267 -21 -13 1 0 6,269

Operating & Service Fee 6,722 364 -16 -11 2 2 7,063

Operating Results 9,931 10,559 1,493 -1,727 -2,159 -1,630 16,467

Funds held by FA/(Members) 9,931 -33,762 -16,225 -14,740 17,363 -39,324 -76,757Distributed to Member 0 44,321 17,718 13,013 -19,522 37,694 93,224

General Expenses 7,399 8,147 -37 -25 3 2 15,489


Premium Finance Fee -7 -1 0 0 0 0 -8

Change in Retro Claims Expense -184 44 15 11 -97 -674 -885

Premium Written 59,937 3,241 -128 -86 10 14 62,988

Change in Unearned Premium -20,782 25,347 0 0 0 0 4,565

Premium Earned 39,155 28,588 -128 -86 10 14 67,553



Change in IBNR Provision 3,247 -2,341 -1,207 -1,836 -420 -7,036 -9,593


Claim Service Fee 5,345 2,632 -83 -63 273 2,593 10,697

Paid Loss 2,850 13,669 231 948 3,431 29,447 50,576

Change in Outstanding Loss 10,605 -4,058 -540 2,606 -1,021 -22,688 -15,096


Company :

Share (Fiscal Year To Date)2011 &2010

2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:28 AM EST


Page 15 of 26

Premium Finance Fee -13 -20 -17 -19 -43 171 59

Investment Income 45 462 775 2,017 5,171 144,609 153,079

Operating Results -4,920 50,361 57,391 80,373 47,451 506,141 736,797

Driver Record Abstracts 1,504 2,063 1,367 1,215 4,104 23,693 33,946


Administration Expense 2,085 3,402 2,930 1,851 2,215 16,086 28,569

General Expenses 22,244 45,558 46,534 52,735 90,600 476,242 733,913Bad Debts -430 -204 -180 -33 -16 -216 -1,079

Distributed to Member 0 125,150 85,031 108,637 93,039 670,137 1,081,994

Outstanding Loss 10,605 14,833 16,210 24,479 40,444 124,891 231,462

IBNR Provision 3,247 15,391 15,331 11,677 7,186 27,348 80,180

Total Outstanding 13,668 29,556 32,616 32,201 50,203 163,040 321,284Retro Claim Expense Provision -184 -668 1,075 -3,955 2,573 10,801 9,642

Funds held by FA/(Members) -4,920 -74,789 -27,640 -28,264 -45,588 -163,996 -345,197



Unearned Premium 77,159 0 0 0 0 0 77,159

Premium Earned 39,155 184,335 214,501 266,827 426,235 2,491,149 3,622,202Change in Unearned Premium -77,159 0 0 0 0 0 -77,159

Paid Loss 2,850 39,452 59,460 79,487 185,438 1,208,900 1,575,587



Premium Written 116,314 184,335 214,501 266,827 426,235 2,491,149 3,699,361


Claims and Adj. Expenses Incurred 21,863 88,858 111,334 135,717 293,312 1,653,546 2,304,630

Agents Commissions 12,734 18,114 20,692 25,661 41,984 177,895 297,080

Operating & Service Fee 13,372 22,183 21,725 24,041 42,313 258,784 382,418


IBNR Provision 3,247 15,391 15,331 11,677 7,186 27,348 80,180

Retro Claim Expense Provision -184 -668 1,075 -3,955 2,573 10,801 9,642

Claim Service Fee 5,345 19,850 19,258 24,029 57,671 281,606 407,759


Company :

Share (All Years To Date)2011 &2010

2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:29 AM EST


Page 16 of 26

Undiscounted Future Cost on Unearned 38,502 0 0 0 0 0 38,502


PFAD Included IBNR Provision 1,050 4,041 3,565 3,641 5,072 16,735 34,104

Undiscounted Retro Claim Expense -184 -668 1,075 -3,955 2,573 10,801 9,642

Undiscounted IBNR Provision 2,682 13,235 13,163 9,358 3,644 15,090 57,172

Future Cost on Unearned Premium 40,354 0 0 0 0 0 40,354



Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:29 AM EST


Page 17 of 26


Change in Premium Deficiency/(DPAC) 17 0 0 0 0 0 17

Bad Debts 0 0 0 0 0 0 0

Administration Expense 66 -1 0 0 0 0 65

Claims and Adj. Expenses Incurred 1,704 -680 -55 36 -101 16 920

Agents Commissions 211 0 -1 0 -1 0 209

Operating & Service Fee 281 -1 0 0 0 0 280

Operating Results 728 675 53 -39 97 -16 1,498

Funds held by FA/(Members) 728 675 53 -39 97 -16 1,498Distributed to Member 0 0 0 0 0 0 0

General Expenses 610 -2 -1 0 -1 0 606


Premium Finance Fee 0 0 0 0 0 0 0

Change in Retro Claims Expense -14 43 5 3 -1 1 37

Premium Written 2,842 -7 -3 -3 -5 0 2,824

Change in Unearned Premium 199 0 0 0 0 0 199

Premium Earned 3,041 -7 -3 -3 -5 0 3,023

Member Premium 194,717 194,717 194,717 192,154 201,773 319,046


Change in IBNR Provision 281 -342 -63 -85 -36 -10 -255


Claim Service Fee 282 -425 -5 -6 13 25 -116

Paid Loss 467 348 113 64 67 38 1,097

Change in Outstanding Loss 688 -304 -105 60 -144 -38 157


Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:30 AM EST


Page 18 of 26

Driver Record Abstracts 131 4 -1 0 0 0 134


Bad Debts -47 -2 0 0 0 0 -49


Claims and Adj. Expenses Incurred 3,791 3,326 263 92 -175 80 7,377

Agents Commissions 861 37 -1 0 -1 0 896

Operating & Service Fee 991 39 -1 0 0 0 1,029

Operating Results 4,331 1,395 -266 -92 171 -80 5,459

Funds held by FA/(Members) 4,331 -3,316 1,093 942 2,734 -1,443 4,341Distributed to Member 0 4,711 -1,359 -1,034 -2,563 1,363 1,118

General Expenses 833 1,770 -3 0 -1 0 2,599




Premium Written 10,236 392 -6 0 -5 0 10,617


Premium Earned 8,951 6,485 -6 0 -5 0 15,425

Member Premium 194,717 194,717 194,717 192,154 201,773 319,046


Change in IBNR Provision 1,076 -158 -238 -161 -192 -350 -23


Claim Service Fee 799 186 -8 -2 15 76 1,066

Paid Loss 631 3,790 788 403 1,284 506 7,402

Change in Outstanding Loss 1,339 -494 -284 -151 -1,270 -128 -988


Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:31 AM EST


Page 19 of 26

Premium Finance Fee -2 -2 -3 -3 -1 -7 -18

Investment Income 5 42 64 540 378 3,937 4,966

Operating Results 1,487 10,446 10,074 13,204 11,447 20,790 67,448

Driver Record Abstracts 271 304 311 214 190 524 1,814


Administration Expense 364 503 593 323 118 297 2,198

General Expenses 3,676 7,834 9,526 8,728 6,545 10,926 47,235Bad Debts -61 -18 -27 -3 -1 2 -108

Distributed to Member 0 29,806 16,557 16,966 16,703 28,534 108,566


IBNR Provision 1,076 4,484 2,289 1,429 1,203 1,124 11,605

Total Outstanding 2,361 8,064 6,908 3,965 4,971 8,478 34,747Retro Claim Expense Provision -54 -186 216 -730 308 385 -61

Funds held by FA/(Members) 1,487 -19,360 -6,483 -3,762 -5,256 -7,744 -41,118




Premium Earned 8,951 40,163 45,903 47,359 49,013 76,435 267,824Change in Unearned Premium -15,037 0 0 0 0 0 -15,037

Paid Loss 631 10,416 15,326 17,727 23,002 34,927 102,029


Member Premium 194,717 194,717 194,717 192,154 201,773 319,046

Premium Written 23,988 40,163 45,903 47,359 49,013 76,435 282,861


Claims and Adj. Expenses Incurred 3,791 21,923 26,364 25,964 31,398 48,649 158,089




IBNR Provision 1,076 4,484 2,289 1,429 1,203 1,124 11,605

Retro Claim Expense Provision -54 -186 216 -730 308 385 -61

Claim Service Fee 799 3,443 4,130 4,272 3,425 5,244 21,313


Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:32 AM EST


Page 20 of 26



PFAD Included IBNR Provision 256 1,062 773 527 652 879 4,149

Undiscounted Retro Claim Expense -54 -186 216 -730 308 385 -61

Undiscounted IBNR Provision 930 3,918 1,836 1,102 738 517 9,041




Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:33 AM EST


Page 21 of 26



Bad Debts -3 0 0 0 0 0 -3

Change in Premium Deficiency/(DPAC) -108 0 0 0 0 0 -108


Agents Commissions 2,217 7 -1 0 -1 0 2,222

General Expenses 4,773 13 -2 0 -1 0 4,783


Funds held by FA/(Members) -1,437 3,778 -137 653 -2,899 -2,205 -2,247

Operating Results -1,437 3,778 -137 653 -2,899 -2,205 -2,247



Paid Loss 2,206 1,578 194 138 302 2,220 6,638

Premium Earned 16,691 43 -6 -2 -5 0 16,721

Premium Written 17,869 43 -6 -2 -5 0 17,899


Change in Outstanding Loss 8,021 -1,804 530 148 2,383 -357 8,921

Change in Retro Claims Expense -70 230 19 15 1 17 212

Claims and Adj. Expenses Incurred 13,367 -3,748 133 -655 2,895 2,205 14,197

Claim Service Fee 2,308 -1,973 -9 -17 261 1,484 2,054

Change in IBNR Provision 902 -1,779 -601 -939 -52 -1,159 -3,628



Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:34 AM EST


Page 22 of 26

Driver Record Abstracts 988 41 -2 -1 0 1 1,027

Administration Expense 1,330 55 -2 -1 0 0 1,382

Bad Debts -396 -10 3 1 0 -1 -403


Operating & Service Fee 7,713 403 -17 -11 2 2 8,092

Agents Commissions 6,896 304 -22 -13 0 0 7,165

General Expenses 8,232 9,917 -40 -25 2 2 18,088

Distributed to Member 0 49,032 16,359 11,979 -22,085 39,057 94,342

Funds held by FA/(Members) 14,262 -37,078 -15,132 -13,798 20,097 -40,767 -72,416

Operating Results 14,262 11,954 1,227 -1,819 -1,988 -1,710 21,926

Premium Finance Fee -8 -1 0 0 0 0 -9


Paid Loss 3,481 17,459 1,019 1,351 4,715 29,953 57,978

Premium Earned 48,106 35,073 -134 -86 5 14 82,978

Premium Written 70,173 3,633 -134 -86 5 14 73,605


Change in Outstanding Loss 11,944 -4,552 -824 2,455 -2,291 -22,816 -16,084


Claims and Adj. Expenses Incurred 25,654 13,272 -1,321 1,758 1,991 1,722 43,076

Claim Service Fee 6,144 2,818 -91 -65 288 2,669 11,763

Change in IBNR Provision 4,323 -2,499 -1,445 -1,997 -612 -7,386 -9,616



Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:34 AM EST


Page 23 of 26

Operating Results -3,433 60,807 67,465 93,577 58,898 526,931 804,245Investment Income 50 504 839 2,557 5,549 148,546 158,045

Distributed to Member 0 154,956 101,588 125,603 109,742 698,671 1,190,560

Premium Finance Fee -15 -22 -20 -22 -44 164 41

Bad Debts -491 -222 -207 -36 -17 -214 -1,187

Administration Expense 2,449 3,905 3,523 2,174 2,333 16,383 30,767

General Expenses 25,920 53,392 56,060 61,463 97,145 487,168 781,148

Funds held by FA/(Members) -3,433 -94,149 -34,123 -32,026 -50,844 -171,740 -386,315

IBNR Provision 4,323 19,875 17,620 13,106 8,389 28,472 91,785


Total Outstanding 16,029 37,620 39,524 36,166 55,174 171,518 356,031Retro Claim Expense Provision -238 -854 1,291 -4,685 2,881 11,186 9,581




Driver Record Abstracts 1,775 2,367 1,678 1,429 4,294 24,217 35,760

Paid Loss 3,481 49,868 74,786 97,214 208,440 1,243,827 1,677,616


IBNR Provision 4,323 19,875 17,620 13,106 8,389 28,472 91,785

Premium Written 140,302 224,498 260,404 314,186 475,248 2,567,584 3,982,222


Premium Earned 48,106 224,498 260,404 314,186 475,248 2,567,584 3,890,026





Claim Service Fee 6,144 23,293 23,388 28,301 61,096 286,850 429,072

Retro Claim Expense Provision -238 -854 1,291 -4,685 2,881 11,186 9,581

Claims and Adj. Expenses Incurred 25,654 110,781 137,698 161,681 324,710 1,702,195 2,462,719


Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:34 AM EST


Page 24 of 26



PFAD Included IBNR Provision 1,306 5,103 4,338 4,168 5,724 17,614 38,253

Undiscounted Retro Claim Expense -238 -854 1,291 -4,685 2,881 11,186 9,581

Undiscounted IBNR Provision 3,612 17,153 14,999 10,460 4,382 15,607 66,213




Company :


2009 2008 2007 2006 2005 &Prior

Total

Accident Years

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:35 AM EST


Page 25 of 26

Driver Record Abstracts 1,027 160 178 203 151 1,011 758 253

Administration Expense 1,382 224 224 247 248 1,335 874 461

Bad Debts -403 0 0 0 0 -403 -400 -3

Change in Premium Deficiency/(DPAC) 825 -64 -241 -296 191 625 816 -191

Operating & Service Fee 8,092 1,675 1,872 2,091 1,552 7,996 5,952 2,044

Agents Commissions 7,165 1,500 1,674 1,883 1,399 7,057 4,769 2,288

General Expenses 18,088 3,495 3,707 4,128 3,541 17,621 12,769 4,852

Distributed to Member 94,342 0 0 0 0 94,342 94,342 0

Funds held by FA/(Members) -72,416 4,738 4,489 3,869 4,500 -71,558 -71,396 -162

Operating Results 21,926 4,738 4,489 3,869 4,500 22,784 22,946 -162

Premium Finance Fee -9 0 0 0 0 -9 -8 -1

Investment Income 121 3 21 26 25 94 88 6

Paid Loss 57,978 12,865 12,865 15,776 15,776 52,156 46,604 5,552

Premium Earned 82,978 15,996 15,935 17,658 17,705 79,546 63,024 16,522

Premium Written 73,605 16,754 18,719 20,908 15,523 72,647 53,944 18,703

Change in Unearned Premium 9,373 -758 -2,784 -3,250 2,182 6,899 9,080 -2,181

Change in Outstanding Loss -16,084 -5,649 -5,651 -5,687 -5,690 -16,007 -22,971 6,964

Change in Retro Claims Expense -965 211 213 -255 -255 -31 -1,322 1,291

Claims and Adj. Expenses Incurred 43,076 7,766 7,760 9,687 9,689 39,226 27,389 11,837

Claim Service Fee 11,763 1,600 1,593 1,766 1,771 11,419 9,385 2,034

Change in IBNR Provision -9,616 -1,261 -1,260 -1,913 -1,913 -8,311 -4,307 -4,004

O/S Loss Transition Adjustment 0 0 0 0 0 0 0 0


Company :

Combined Share (Calendar Period)

FY Mar 2010[1]

EstimateApr 2010[2]

EstimateMay 2010[3]

EstimateNov 2009[4]

EstimateDec 2009[5]

CalendarYear toDate atMay 2010[6]

CalendarYear toDate atApr 2010[7]

CalendarMonth ofMay 2010[8]

EXHIBIT 6-A

AS AT: Month Year


FA System 5/28/2010 1:05:36 AM EST


Page 26 of 26

Combined Share (Memo Items)Future Cost on Unearned Premium 49,106 49,560 51,134

Retro Claims Expense Provision 9,581 9,792 10,005

Total Outstanding 356,031 349,332 342,634

Undiscounted IBNR Provision 66,213 65,562 64,911

Undiscounted Retro Claim Expense 9,581 9,792 10,005

PFAD Included IBNR Provision 38,253 37,428 36,602

Undiscounted Premium Deficiency/(DPAC) -8,299 -8,363 -8,604

Undiscounted Future Costs on Unearned 46,878 47,314 48,819

Premium Deficiency/(DPAC) -8,299 -8,363 -8,604

Unearned Premium 92,196 92,954 95,738

Combined Share (Balance Sheet Amounts)

IBNR Provision 91,785 90,524 89,264

Outstanding Loss 254,665 249,016 243,365


Company :

Balance AtMar 2010

Estimate AtApr 2010

Estimate AtMay 2010

EXHIBIT 6-A

AS AT:

FACILITY ASSOCIATION RESIDUAL MARKET GOVERNMENT LINE REPORT

Company:Jurisdiction:

FA System 5/28/2010 2:32:11 AM EST


Page 1 of 11

Estimated Calendar Year Written PremiumsFor the __ months ending ______________

Accident Benefits 489,063 296,897 170,856 615,104 488,954 126,150

Other 187,595 53,697 45,761 195,531 155,458 40,073

Total All Lines 1,210,289 687,616 519,530 1,378,375 1,092,686 285,689

Liability 533,631 337,022 302,913 567,740 448,274 119,466

Government Line Written PremiumFiscal Year 2010Nov 1 2009 toMar 31 2010

EstimatedWritten PremiumFor Apr 2010 &

May 2010

EstimatedWritten PremiumFor Nov 2009 &

Dec 2009

EstimatedWritten Premium

For CY 2010At May 2010


For CY 2010At Apr 2010


For MonthMay 2010

[1] [2] [3] [4] = [1] + [2] - [3] [5] [6] = [4] - [5]

EXHIBIT 6-B

AS AT:

FACILITY ASSOCIATION RESIDUAL MARKET GOVERNMENT LINE REPORT


FA System 5/28/2010 2:32:13 AM EST


Page 2 of 11

Estimated Unearned Premiums at _______ &Earned in the __ months ending _________

Accident Benefits 608,943 72,812 681,755 605,078 615,104 538,427 410,029 128,398

Other 222,371 12,986 235,357 189,866 195,531 150,040 131,180 18,860

Total All Lines 1,529,761 137,852 1,667,613 1,625,207 1,378,375 1,335,969 1,075,563 260,406

Liability 698,447 52,054 750,501 830,263 567,740 647,502 534,354 113,148

Government Line UnearnedPremium AtMar 31 2010

Estimated ChangeIn UPR ForApr 2010 &May 2010

EstimatedUnearnedPremium AtMay 2010

EstimatedUnearnedPremium AtDec 31 2009



EstimatedEarned Premium





For MonthMay 2010

[1] [2] [3] = [1] + [2] [4] [5] [6] = [5] + [4] - [3] [7] [8] = [6] - [7]

EXHIBIT 6-B

AS AT:

FACILITY ASSOCIATION RESIDUAL MARKETGOVERNMENT LINE REPORT


FA System 5/28/2010 2:32:14 AM EST


Page 3 of 11

Estimated Calendar Year Paid LossesFor the __ months ending __________

2008 7,463 3,652 1,972 9,143 15,746 -6,603

2007 -2,921 -30 184 -3,135 -3,075 -60

2010 51,477 87,932 139,409 128,374 11,035

2009 149,711 19,170 75,110 93,771 103,581 -9,810

Other 2004 & Prior 541 -776 -9,764 9,529 -136,461 145,990

All Years 1,031,177 527,400 505,536 1,053,041 803,273 249,768

2006 -2,340 38 -2,900 598 552 46

2005 51,588 -14 1,300 50,274 13,809 36,465

All Years 255,519 109,972 65,902 299,589 122,526 177,063

2009 470,906 123,136 199,450 394,592 305,305 89,287

2008 219,460 62,754 103,150 179,064 138,287 40,777

All Years 2,379,202 1,041,236 1,288,374 2,132,064 1,610,077 521,987

2010 91,680 147,862 239,542 205,901 33,641

2005 318,557 85,718 127,708 276,567 204,027 72,540

Total All Lines 2004 & Prior 749,069 417,994 642,172 524,891 354,085 170,806

2007 197,072 99,212 94,312 201,972 123,687 78,285

2006 332,458 104,560 121,582 315,436 278,785 36,651

2008 40,726 13,284 13,906 40,104 28,146 11,958

2009 67,782 9,866 43,548 34,100 26,587 7,513

2010 34,917 45,510 80,427 75,695 4,732

2007 78,793 62,844 40,826 100,811 54,699 46,112

Liability 2004 & Prior 508,444 160,450 450,024 218,870 220,943 -2,073

2005 193,711 57,066 102,196 148,581 111,262 37,319

2006 168,133 54,844 66,436 156,541 166,946 -10,405

All Years 1,092,506 403,864 716,936 779,434 684,278 95,156

2008 171,271 45,818 87,272 129,817 94,395 35,422

2009 253,413 94,100 80,792 266,721 175,137 91,584

2010 5,286 14,420 19,706 1,832 17,874

2007 121,200 36,398 53,302 104,296 72,063 32,233

Accident Benefits 2004 & Prior 240,084 258,320 201,912 296,492 269,603 26,889

2005 73,258 28,666 24,212 77,712 78,956 -1,244

2006 166,665 49,678 58,046 158,297 111,287 47,010

Government Line Accident Year Paid LossFiscal Year 2010Nov 1 2009 toMar 31 2010

EstimatedPaid Loss

For Apr 2010 &May 2010

EstimatedPaid Loss

For Nov 2009 &Dec 2009

EstimatedPaid Loss


EstimatedPaid Loss


EstimatedPaid LossFor MonthMay 2010

[1] [2] [3] [4] = [1] + [2] - [3] [5] [6] = [4] - [5]

EXHIBIT 6-B

AS AT:



FA System 5/28/2010 2:32:16 AM EST


Page 4 of 11

Estimated Calendar Year Claims FeesFor the __ months ending __________

2008 -122 -122 -123 1

2007 2,485 2,485 90 2,395

2010 13,705 4,884 18,589 17,453 1,136

2009 12,560 11,164 1,396 161 1,235

Other 2004 & Prior 1,177 1,177 1,640 -463

All Years 246,082 26,888 23,232 249,738 107,223 142,515

2006 356 356 288 68

2005 2,666 2,666 2,110 556

All Years 32,827 4,884 11,164 26,547 21,619 4,928

2009 190,892 68,066 122,826 -3,185 126,011

2008 2,228 2,228 1,668 560

All Years 579,376 65,972 68,066 577,282 289,223 288,059

2010 100,608 65,972 166,580 132,566 34,014

2005 35,590 35,590 28,386 7,204

Total All Lines 2004 & Prior 106,540 106,540 111,786 -5,246

2007 128,469 128,469 6,178 122,291

2006 15,049 15,049 11,824 3,225

2008 1,462 1,462 1,150 312

2009 74,959 33,670 41,289 -3,770 45,059

2010 46,122 34,200 80,322 65,973 14,349

2007 81,294 81,294 3,816 77,478

Liability 2004 & Prior 61,738 61,738 65,537 -3,799

2005 24,037 24,037 19,171 4,866

2006 10,855 10,855 8,504 2,351

All Years 300,467 34,200 33,670 300,997 160,381 140,616

2008 888 888 641 247

2009 103,373 23,232 80,141 424 79,717

2010 40,781 26,888 67,669 49,140 18,529

2007 44,690 44,690 2,272 42,418

Accident Benefits 2004 & Prior 43,625 43,625 44,609 -984

2005 8,887 8,887 7,105 1,782

2006 3,838 3,838 3,032 806

Government Line Accident Year Claims FeesFiscal Year 2010Nov 1 2009 toMar 31 2010

EstimatedClaims Fees


EstimatedClaims Fees

For Nov 2009 &Dec 2009

EstimatedClaims FeesFor CY 2010At May 2010

EstimatedClaims FeesFor CY 2010At Apr 2010

EstimatedClaims FeesFor MonthMay 2010

[1] [2] [3] [4] = [1] + [2] - [3] [5] [6] = [4] - [5]

EXHIBIT 6-B

AS AT:



FA System 5/28/2010 2:32:17 AM EST


Page 5 of 11

Estimated Change in Outstanding Loss (excluding IBNR)For the__ months ending ______________________

2008 6,255 -133 6,122 18,843 -12,721 -8,891 -3,830

2007 37,315 -727 36,588 32,879 3,709 -5,705 9,414

2010 24,429 30,471 54,900 54,900 36,847 18,053

2009 18,797 62 18,859 56,308 -37,449 -28,202 -9,247

Other 2004 & Prior 57,803 -4,045 53,758 88,063 -34,305 -33,714 -591

All Years 5,538,263 -144,032 5,394,231 4,961,151 433,080 439,328 -6,248

2006 32,228 -1,387 30,841 44,251 -13,410 -5,848 -7,562

2005 93,093 -5,472 87,621 143,825 -56,204 -55,804 -400

All Years 269,920 18,769 288,689 384,169 -95,480 -101,317 5,837

2009 1,456,510 -503 1,456,007 1,228,705 227,302 213,734 13,568

2008 1,445,554 -31,358 1,414,196 1,447,838 -33,642 -10,931 -22,711

All Years 12,734,829 -412,945 12,321,884 13,339,116 -1,017,232 -827,192 -190,040

2010 173,959 188,949 362,908 362,908 294,468 68,440

2005 1,206,288 -72,569 1,133,719 1,547,331 -413,612 -281,871 -131,741

Total All Lines 2004 & Prior 5,000,950 -376,794 4,624,156 5,321,045 -696,889 -645,359 -51,530

2007 1,905,522 -38,465 1,867,057 1,998,804 -131,747 -98,839 -32,908

2006 1,546,046 -82,205 1,463,841 1,795,393 -331,552 -298,394 -33,158

2008 767,205 -17,600 749,605 704,550 45,055 49,822 -4,767

2009 523,392 1,529 524,921 418,617 106,304 76,280 30,024

2010 50,955 56,218 107,173 107,173 92,446 14,727

2007 1,207,247 -23,923 1,183,324 1,231,645 -48,321 -54,729 6,408

Liability 2004 & Prior 2,435,212 -194,312 2,240,900 3,328,887 -1,087,987 -967,702 -120,285

2005 814,742 -50,634 764,108 1,035,365 -271,257 -173,032 -98,225

2006 1,127,893 -58,960 1,068,933 1,274,732 -205,799 -188,288 -17,511

All Years 6,926,646 -287,682 6,638,964 7,993,796 -1,354,832 -1,165,203 -189,629

2008 672,094 -13,625 658,469 724,445 -65,976 -51,862 -14,114

2009 914,321 -2,094 912,227 753,780 158,447 165,656 -7,209

2010 98,575 102,260 200,835 200,835 165,175 35,660

2007 660,960 -13,815 647,145 734,280 -87,135 -38,405 -48,730

Accident Benefits 2004 & Prior 2,507,935 -178,437 2,329,498 1,904,095 425,403 356,057 69,346

2005 298,453 -16,463 281,990 368,141 -86,151 -53,035 -33,116

2006 385,925 -21,858 364,067 476,410 -112,343 -104,258 -8,085

Government Line Accident Year OutstandingLoss

At Mar 31 2010

EstimatedChange in O/S Loss


EstimatedOutstanding Losses

At May 31 2010

EstimatedOutstanding LossAt Dec 31 2009

Estimated Changein O/S LossFor CY 2010At May 2010

Estimated Changein O/S LossFor CY 2010At Apr 2010

Estimated Changein O/S LossFor MonthMay 2010

[1] [2] [3] = [1] + [2] [4] [5] = [3] - [4] [6] [7] = [5] - [6]

EXHIBIT 6-B

AS AT:



FA System 5/28/2010 2:32:19 AM EST


Page 6 of 11

Estimated Change in IBNRFor the __ months ending ____________

2008 3,402 -196 3,206 10,656 -7,450 -5,270 -2,180

2007 14,452 -1,502 12,950 14,359 -1,409 -3,662 2,253

2010 63,754 45,479 109,233 109,233 62,327 46,906

2009 19,616 -2,350 17,266 87,078 -69,812 -56,773 -13,039

Other 2004 & Prior 25,336 -1,472 23,864 37,672 -13,808 -12,911 -897

All Years 2,920,050 -108,620 2,811,430 2,838,980 -27,550 100,672 -128,222

2006 15,872 -1,382 14,490 20,998 -6,508 -2,648 -3,860

2005 38,039 -2,297 35,742 49,957 -14,215 -15,630 1,415

All Years 180,471 36,280 216,751 220,720 -3,969 -34,567 30,598

2009 1,452,066 -179,279 1,272,787 1,657,731 -384,944 -240,836 -144,108

2008 780,804 -44,888 735,916 835,561 -99,645 -75,695 -23,950

All Years 6,591,626 -249,424 6,342,202 6,827,785 -485,583 -245,185 -240,398

2010 355,490 223,966 579,456 579,456 494,282 85,174

2005 494,830 -28,962 465,868 541,745 -75,877 -46,728 -29,149

Total All Lines 2004 & Prior 2,209,109 -99,913 2,109,196 2,321,597 -212,401 -152,023 -60,378

2007 702,722 -75,023 627,699 805,577 -177,878 -144,460 -33,418

2006 596,605 -45,325 551,280 665,574 -114,294 -79,725 -34,569

2008 400,222 -22,460 377,762 404,779 -27,017 -19,443 -7,574

2009 544,429 -65,325 479,104 585,852 -106,748 -82,179 -24,569

2010 107,216 68,737 175,953 175,953 170,337 5,616

2007 456,896 -48,095 408,801 509,863 -101,062 -85,700 -15,362

Liability 2004 & Prior 1,200,295 -56,732 1,143,563 1,429,295 -285,732 -227,905 -57,827

2005 336,102 -18,782 317,320 363,322 -46,002 -25,037 -20,965

2006 445,945 -34,427 411,518 474,974 -63,456 -41,363 -22,093

All Years 3,491,105 -177,084 3,314,021 3,768,085 -454,064 -311,290 -142,774

2008 377,180 -22,232 354,948 420,126 -65,178 -50,982 -14,196

2009 888,021 -111,604 776,417 984,801 -208,384 -101,884 -106,500

2010 184,520 109,750 294,270 294,270 261,618 32,652

2007 231,374 -25,426 205,948 281,355 -75,407 -55,098 -20,309

Accident Benefits 2004 & Prior 983,478 -41,709 941,769 854,630 87,139 88,793 -1,654

2005 120,689 -7,883 112,806 128,466 -15,660 -6,061 -9,599

2006 134,788 -9,516 125,272 169,602 -44,330 -35,714 -8,616

Government Line Accident Year IBNRAt Mar 31 2010

EstimatedChange in IBNRFor Apr 2010 &

May 2010

EstimatedIBNR

At May 31 2010

EstimatedIBNR

At Dec 31 2009

EstimatedChange in IBNRFor CY 2010At May 2010

EstimatedChange in IBNRFor CY 2010At Apr 2010

EstimatedChange in IBNR

For MonthMay 2010

[1] [2] [3] = [1] + [2] [4] [5] = [3] - [4] [6] [7] = [5] - [6]

EXHIBIT 6-B

AS AT:



FA System 5/28/2010 2:32:21 AM EST


Page 7 of 11

Estimated Change in Retro ClaimsFor the __ months ending __________

2008

2007

2010

2009

Other 2004 & Prior

All Years

2006

2005

All Years

2009 298,187 -31,851 266,336 314,117 -47,781 -4 -47,777

2008 222,062 634 222,696 221,738 958 6 952

All Years 2,383,131 -70,967 2,312,164 2,436,253 -124,089 -30,612 -93,477

2010 70,150 43,590 113,740 113,740 96,705 17,035

2005 198,356 -14,489 183,867 219,553 -35,686 -27,866 -7,820

Total All Lines 2004 & Prior 905,543 -28,406 877,137 960,057 -82,920 -76,015 -6,905

2007 405,906 -25,732 380,174 418,746 -38,572 28 -38,600

2006 282,927 -14,713 268,214 302,042 -33,828 -23,466 -10,362

2008 222,062 634 222,696 221,738 958 6 952

2009 298,187 -31,851 266,336 314,117 -47,781 -4 -47,777

2010 70,150 43,590 113,740 113,740 96,705 17,035

2007 405,906 -25,732 380,174 418,746 -38,572 28 -38,600

Liability 2004 & Prior 905,543 -28,406 877,137 960,057 -82,920 -76,015 -6,905

2005 198,356 -14,489 183,867 219,553 -35,686 -27,866 -7,820

2006 282,927 -14,713 268,214 302,042 -33,828 -23,466 -10,362

All Years 2,383,131 -70,967 2,312,164 2,436,253 -124,089 -30,612 -93,477

2008

2009

2010

2007

Accident Benefits 2004 & Prior

2005

2006

Government Line Accident Year Retro ClaimsAt Mar 31 2010

Estimated Changein Retro ClaimsFor Apr 2010 &

May 2010

EstimatedRetro Claims

At May 31 2010

EstimatedRetro ClaimsAt Dec 31 2009

Estimated Changein Retro ClaimsFor CY 2010At May 2010

Estimated Changein Retro ClaimsFor CY 2010At Apr 2010

Estimated Changein Retro Claims

For MonthMay 2010

[1] [2] [3] = [1] + [2] [4] [5] = [3] - [4] [6] [7] = [5] - [6]

EXHIBIT 6-B

AS AT:



FA System 5/28/2010 2:32:23 AM EST


Page 8 of 11

Estimated Incurred LossFor the __ months ending ____________

2008 9,143 -122 -12,721 -7,450 -11,150 1,462 -12,612

2007 -3,135 2,485 3,709 -1,409 1,650 -12,352 14,002

2010 139,409 18,589 54,900 109,233 322,131 245,001 77,130

2009 93,771 1,396 -37,449 -69,812 -12,094 18,767 -30,861

Other 2004 & Prior 9,529 1,177 -34,305 -13,808 -37,407 -181,446 144,039

All Years 1,053,041 249,738 433,080 -27,550 1,708,309 1,450,496 257,813

2006 598 356 -13,410 -6,508 -18,964 -7,656 -11,308

2005 50,274 2,666 -56,204 -14,215 -17,479 -55,515 38,036

All Years 299,589 26,547 -95,480 -3,969 226,687 8,261 218,426

2009 394,592 122,826 227,302 -384,944 -47,781 311,995 275,014 36,981

2008 179,064 2,228 -33,642 -99,645 958 48,963 53,335 -4,372

All Years 2,132,064 577,282 -1,017,232 -485,583 -124,089 1,082,442 796,311 286,131

2010 239,542 166,580 362,908 579,456 113,740 1,462,226 1,223,922 238,304

2005 276,567 35,590 -413,612 -75,877 -35,686 -213,018 -124,052 -88,966

Total All Lines 2004 & Prior 524,891 106,540 -696,889 -212,401 -82,920 -360,779 -407,526 46,747

2007 201,972 128,469 -131,747 -177,878 -38,572 -17,756 -113,406 95,650

2006 315,436 15,049 -331,552 -114,294 -33,828 -149,189 -110,976 -38,213

2008 40,104 1,462 45,055 -27,017 958 60,562 59,681 881

2009 34,100 41,289 106,304 -106,748 -47,781 27,164 16,914 10,250

2010 80,427 80,322 107,173 175,953 113,740 557,615 501,156 56,459

2007 100,811 81,294 -48,321 -101,062 -38,572 -5,850 -81,886 76,036

Liability 2004 & Prior 218,870 61,738 -1,087,987 -285,732 -82,920 -1,176,031 -985,142 -190,889

2005 148,581 24,037 -271,257 -46,002 -35,686 -180,327 -95,502 -84,825

2006 156,541 10,855 -205,799 -63,456 -33,828 -135,687 -77,667 -58,020

All Years 779,434 300,997 -1,354,832 -454,064 -124,089 -852,554 -662,446 -190,108

2008 129,817 888 -65,976 -65,178 -449 -7,808 7,359

2009 266,721 80,141 158,447 -208,384 296,925 239,333 57,592

2010 19,706 67,669 200,835 294,270 582,480 477,765 104,715

2007 104,296 44,690 -87,135 -75,407 -13,556 -19,168 5,612

Accident Benefits 2004 & Prior 296,492 43,625 425,403 87,139 852,659 759,062 93,597

2005 77,712 8,887 -86,151 -15,660 -15,212 26,965 -42,177

2006 158,297 3,838 -112,343 -44,330 5,462 -25,653 31,115

Government Line Accident Year EstimatedPaid LossesFor CY 2010

At May 31 2010

EstimatedClaims FeesFor CY 2010

At May 31 2010

Estimated Changein O/S LossesFor CY 2010

At May 31 2010

Estimated Changein IBNR

For CY 2010At May 31 2010

Estimated Changein Retro ClaimsFor CY 2010

At May 31 2010

Estimated IncurredLosses



For CY 2010At Apr 30 2010


For the Monthof May 2010

[1] [2] [3] [4] [5] [6]=[1]+[2]+[3]+[4]+[5] [7] [8] = [6] - [7]

EXHIBIT 6-B

AS AT:



FA System 5/28/2010 2:32:25 AM EST


Page 9 of 11

Estimated Undiscounted Incurred LossFor the __ months ending ____________

2008 9,143 -122 -12,721 -6,335 -10,035 2,192 -12,227

2007 -3,135 2,485 3,709 -1,707 1,352 -11,800 13,152

2010 139,409 18,589 54,900 99,904 312,802 238,296 74,506

2009 93,771 1,396 -37,449 -63,917 -6,199 23,632 -29,831

Other 2004 & Prior 9,529 1,177 -34,305 -10,750 -34,349 -178,555 144,206

All Years 1,053,041 249,738 433,080 -38,821 1,697,038 1,421,895 275,143

2006 598 356 -13,410 -5,419 -17,875 -7,087 -10,788

2005 50,274 2,666 -56,204 -10,218 -13,482 -51,578 38,096

All Years 299,589 26,547 -95,480 1,558 232,214 15,100 217,114

2009 394,592 122,826 227,302 -364,829 -47,781 332,110 291,210 40,900

2008 179,064 2,228 -33,642 -95,313 958 53,295 55,156 -1,861

All Years 2,132,064 577,282 -1,017,232 -377,723 -124,089 1,190,302 869,886 320,416

2010 239,542 166,580 362,908 523,260 113,740 1,406,030 1,170,469 235,561

2005 276,567 35,590 -413,612 -50,700 -35,686 -187,841 -112,010 -75,831

Total All Lines 2004 & Prior 524,891 106,540 -696,889 -140,476 -82,920 -288,854 -343,805 54,951

2007 201,972 128,469 -131,747 -165,101 -38,572 -4,979 -101,286 96,307

2006 315,436 15,049 -331,552 -84,564 -33,828 -119,459 -89,848 -29,611

2008 40,104 1,462 45,055 -30,025 958 57,554 57,602 -48

2009 34,100 41,289 106,304 -102,932 -47,781 30,980 22,284 8,696

2010 80,427 80,322 107,173 159,174 113,740 540,836 483,832 57,004

2007 100,811 81,294 -48,321 -95,943 -38,572 -731 -75,054 74,323

Liability 2004 & Prior 218,870 61,738 -1,087,987 -195,249 -82,920 -1,085,548 -902,684 -182,864

2005 148,581 24,037 -271,257 -29,713 -35,686 -164,038 -88,451 -75,587

2006 156,541 10,855 -205,799 -45,772 -33,828 -118,003 -64,638 -53,365

All Years 779,434 300,997 -1,354,832 -340,460 -124,089 -738,950 -567,109 -171,841

2008 129,817 888 -65,976 -58,953 5,776 -4,638 10,414

2009 266,721 80,141 158,447 -197,980 307,329 245,294 62,035

2010 19,706 67,669 200,835 264,182 552,392 448,341 104,051

2007 104,296 44,690 -87,135 -67,451 -5,600 -14,432 8,832

Accident Benefits 2004 & Prior 296,492 43,625 425,403 65,523 831,043 737,434 93,609

2005 77,712 8,887 -86,151 -10,769 -10,321 28,019 -38,340

2006 158,297 3,838 -112,343 -33,373 16,419 -18,123 34,542

Government Line Accident Year Estimated PaidLosses


EstimatedClaims FeesFor CY 2010

At May 31 2010

Estimated Changein Undisc. O/SFor CY 2010

At May 31 2010

Estimated Changein Undisc. IBNRFor CY 2010

At May 31 2010

Estimated Changein Undisc. RetroFor CY 2010

At May 31 2010

EstimatedUndisc. Incurred


EstimatedUndisc. Incurred

For CY 2010At Apr 30 2010

EstimatedUndisc. IncurredFor the Monthof May 2010

[1] [2] [3] [4] * [5] [6]=[1]+[2]+[3]+[4]+[5] [7] [8] = [6] - [7]

EXHIBIT 6-B

AS AT:



FA System 5/28/2010 2:32:26 AM EST


Page 10 of 11

Estimated Total Outstanding and Total Undiscounted OutstandingAs at _________________

2008 6,122 3,206 9,328 6,122 2,633 8,755

2007 36,588 12,950 49,538 36,588 9,656 46,244

2010 54,900 109,233 164,133 54,900 99,904 154,804

2009 18,859 17,266 36,125 18,859 15,318 34,177

Other 2004 & Prior 53,758 23,864 77,622 53,758 18,787 72,545

All Years 5,394,231 2,811,430 8,205,661 5,394,231 2,317,194 7,711,425

2006 30,841 14,490 45,331 30,841 11,363 42,204

2005 87,621 35,742 123,363 87,621 26,732 114,353

All Years 288,689 216,751 505,440 288,689 184,393 473,082

2009 1,456,007 1,272,787 266,336 2,995,130 1,456,007 1,122,786 266,336 2,845,129

2008 1,414,196 735,916 222,696 2,372,808 1,414,196 604,017 222,696 2,240,909

All Years 12,321,884 6,342,202 2,312,164 20,976,250 12,321,884 5,173,863 2,312,164 19,807,911

2010 362,908 579,456 113,740 1,056,104 362,908 523,260 113,740 999,908

2005 1,133,719 465,868 183,867 1,783,454 1,133,719 348,865 183,867 1,666,451

Total All Lines 2004 & Prior 4,624,156 2,109,196 877,137 7,610,489 4,624,156 1,701,649 877,137 7,202,942

2007 1,867,057 627,699 380,174 2,874,930 1,867,057 460,222 380,174 2,707,453

2006 1,463,841 551,280 268,214 2,283,335 1,463,841 413,064 268,214 2,145,119

2008 749,605 377,762 222,696 1,350,063 749,605 309,168 222,696 1,281,469

2009 524,921 479,104 266,336 1,270,361 524,921 424,871 266,336 1,216,128

2010 107,173 175,953 113,740 396,866 107,173 159,174 113,740 380,087

2007 1,183,324 408,801 380,174 1,972,299 1,183,324 302,471 380,174 1,865,969

Liability 2004 & Prior 2,240,900 1,143,563 877,137 4,261,600 2,240,900 928,632 877,137 4,046,669

2005 764,108 317,320 183,867 1,265,295 764,108 238,040 183,867 1,186,015

2006 1,068,933 411,518 268,214 1,748,665 1,068,933 309,920 268,214 1,647,067

All Years 6,638,964 3,314,021 2,312,164 12,265,149 6,638,964 2,672,276 2,312,164 11,623,404

2008 658,469 354,948 1,013,417 658,469 292,216 950,685

2009 912,227 776,417 1,688,644 912,227 682,597 1,594,824

2010 200,835 294,270 495,105 200,835 264,182 465,017

2007 647,145 205,948 853,093 647,145 148,095 795,240

Accident Benefits 2004 & Prior 2,329,498 941,769 3,271,267 2,329,498 754,230 3,083,728

2005 281,990 112,806 394,796 281,990 84,093 366,083

2006 364,067 125,272 489,339 364,067 91,781 455,848

Government Line Accident Year EstimatedOutstanding

At May 31 2010

EstimatedIBNR

At May 31 2010

EstimatedRetro Claims

At May 31 2010

Estimated TotalOutstanding

At May 31 2010

EstimatedUndiscountedOutstanding

At May 31 2010

EstimatedUndiscounted

IBNRAt May 31 2010

EstimatedUndiscountedRetro Claims

At May 31 2010

Estimated TotalUndiscountedOutstanding

At May 31 2010[1] [2] [3] [4] = [1] + [2] + [3] [5] = [1] [6] [7] [8] = [5] + [6] + [7]

EXHIBIT 6-B

AS AT:



FA System 5/28/2010 2:32:29 AM EST


Page 11 of 11

Estimated Effect of DiscountingAs at ______________________

2008 8,755 8,218 1,110 9,328 573

2007 46,244 43,621 5,917 49,538 3,294

2010 154,804 142,221 21,912 164,133 9,329

2009 34,177 31,797 4,328 36,125 1,948

Other 2004 & Prior 72,545 68,609 9,013 77,622 5,077

All Years 7,711,425 7,253,137 952,524 8,205,661 494,236

2006 42,204 39,792 5,539 45,331 3,127

2005 114,353 108,151 15,212 123,363 9,010

All Years 473,082 442,409 63,031 505,440 32,358

2009 2,845,129 2,666,918 328,212 2,995,130 150,001

2008 2,240,909 2,116,514 256,294 2,372,808 131,899

All Years 19,807,911 18,765,574 2,210,676 20,976,250 1,168,339

2010 999,908 930,335 125,769 1,056,104 56,196

2005 1,666,451 1,585,780 197,674 1,783,454 117,003

Total All Lines 2004 & Prior 7,202,942 6,850,291 760,198 7,610,489 407,547

2007 2,707,453 2,576,649 298,281 2,874,930 167,477

2006 2,145,119 2,039,087 244,248 2,283,335 138,216

2008 1,281,469 1,215,402 134,661 1,350,063 68,594

2009 1,216,128 1,150,019 120,342 1,270,361 54,233

2010 380,087 359,075 37,791 396,866 16,779

2007 1,865,969 1,782,020 190,279 1,972,299 106,330

Liability 2004 & Prior 4,046,669 3,863,189 398,411 4,261,600 214,931

2005 1,186,015 1,131,244 134,051 1,265,295 79,280

2006 1,647,067 1,569,079 179,586 1,748,665 101,598

All Years 11,623,404 11,070,028 1,195,121 12,265,149 641,745

2008 950,685 892,894 120,523 1,013,417 62,732

2009 1,594,824 1,485,102 203,542 1,688,644 93,820

2010 465,017 429,039 66,066 495,105 30,088

2007 795,240 751,008 102,085 853,093 57,853

Accident Benefits 2004 & Prior 3,083,728 2,918,493 352,774 3,271,267 187,539

2005 366,083 346,385 48,411 394,796 28,713

2006 455,848 430,216 59,123 489,339 33,491

Government Line Accident Year Estimated TotalUndiscountedOutstanding

At May 31 2010

Estimated TotalOutstandingExcl. PFAD

At May 31 2010

EstimatedPFAD

At May 31 2010

EstimatedTotal

OutstandingAt May 31 2010

EstimatedEffect of

DiscountingAt May 31 2010

[1] [2] = [4] - [3] [3] [4] [5] = [4] - [1]

EXHIBIT 6-B

Operational Report

Risk Sharing Pool - Private Passenger:

Reporting Company:

Accounting Month:

FA System 5/28/2010 11:52:53 AM EST


Page 1 of 8

Expense Allowance 2,492,970 6,385,680 -24,305 -1,415 -228 8,852,702Claims Incurred 62,899,271 -8,031,342 10,544,583 -3,098,303 -750,098 -2,834,897 58,729,214Change in IBNR Provision 41,063,000 -17,972,000 9,288,000 -3,367,000 -1,210,000 -1,956,000 25,846,000

Administration Expense 25,403 65,104 90,507

OPERATING RESULT -2,518,373 -73,031,029 7,971,898 -10,547,899 3,097,781 750,098 2,834,897 -71,442,627General Expenses 2,518,373 32,624,784 -24,305 -1,415 -228 35,117,209Change in Premium Deficiency (DPAC) 26,174,000 26,174,000

Premiums Earned 22,493,026 -83,749 -4,731 -750 22,403,796Change in Unearned Premium -8,603,828 442,937 0 0 0 -8,160,891Premiums Written 8,603,828 22,050,089 -83,749 -4,731 -750 30,564,687

Change in Outstanding Losses 15,347,539 1,498,085 -1,196,991 -577,340 -410,279 -4,086,927 10,574,087Paid Expenses 19,618 814,323 260,800 236,959 152,804 313,135 1,797,639Paid Losses 6,469,114 7,628,250 2,192,774 609,078 717,377 2,894,895 20,511,488

This Month 2011 2010 2009 2008 2007 2006 2005 & Prior Total

POOL TOTAL

Expense Allowance 4,893,843 36,006,118 1,185,831 -16,607 -975 -399 -192 42,067,619Claims Incurred 138,486,531 76,044,892 6,600,150 -3,045,346 -795,516 -7,760,940 209,529,771Change in IBNR Provision 78,154,000 -34,315,000 -183,000 -7,018,000 -4,297,000 -8,416,000 23,925,000

Administration Expense 70,090 544,776 21,589 636,455

OPERATING RESULT -4,963,933 -176,532,908 12,199,298 -6,640,333 3,043,225 794,454 7,760,484 -164,339,713General Expenses 4,963,933 123,394,894 -49,502,580 -16,607 -975 -399 -192 78,838,074Change in Premium Deficiency (DPAC) 86,844,000 -50,710,000 36,134,000

Premiums Earned 85,348,517 38,741,610 -56,790 -3,096 -1,461 -648 124,028,132Change in Unearned Premium -16,951,010 -39,824,330 34,602,274 0 0 0 0 -22,173,066Premiums Written 16,951,010 125,172,847 4,139,336 -56,790 -3,096 -1,461 -648 146,201,198

Change in Outstanding Losses 42,567,586 48,422,133 -9,574,917 -3,171,481 -4,463,870 -15,462,834 58,316,617Paid Expenses 29,984 4,158,490 1,815,513 1,169,019 924,341 1,778,428 9,875,775Paid Losses 17,734,961 57,779,269 14,542,554 5,975,116 7,041,013 14,339,466 117,412,379

Fiscal Year To Date 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Accident Years

Exhibit 9-A

Operational Report


Reporting Company:

Accounting Month:

FA System 5/28/2010 11:52:54 AM EST


Page 2 of 8

Expense Allowance 4,893,843 60,142,589 63,676,797 61,108,999 50,927,224 45,448,139 499,111,807 785,309,398Claims Incurred 138,486,531 342,128,385 283,400,752 192,432,167 168,144,350 1,679,226,511 2,803,818,696IBNR Provision 78,154,000 78,729,000 52,378,000 28,019,000 15,852,000 37,439,000 290,571,000

Administration Expense 70,090 871,306 1,378,300 1,173,077 947,830 1,212,948 20,043,948 25,697,499

OPERATING RESULT -4,963,933 -200,995,909 -182,888,655 -131,182,651 -63,347,499 -50,915,351 -415,918,184 -1,050,212,182General Expenses 4,963,933 147,857,895 65,055,097 62,282,076 51,875,054 46,661,087 519,155,755 897,850,897Premium Deficiency (DPAC) 86,844,000 0 0 86,844,000

Premiums Earned 85,348,517 224,294,827 214,500,177 180,959,722 163,890,086 1,782,464,082 2,651,457,411Change in Unearned Premium -16,951,010 -124,258,801 -293 27 0 0 0 -141,210,077Premiums Written 16,951,010 209,607,318 224,295,120 214,500,150 180,959,722 163,890,086 1,782,464,082 2,792,667,488

Outstanding Losses 42,567,586 135,521,590 83,149,835 49,588,579 47,626,042 89,579,413 448,033,045Paid Expenses 29,984 5,504,504 7,436,812 3,736,360 4,595,238 81,741,147 103,044,045Paid Losses 17,734,961 122,373,291 140,436,105 111,088,228 100,071,070 1,470,466,951 1,962,170,606

Years To Date 2011 2010 2009 2008 2007 2006 2005 & Prior Total

POOL TOTAL

IBNR Provision 78,154,000 78,729,000 52,378,000 28,019,000 15,852,000 37,439,000 290,571,000Outstanding Losses including IBNR Provision 120,721,586 214,250,590 135,527,835 77,607,579 63,478,042 127,018,413 738,604,045

Outstanding Losses 42,567,586 135,521,590 83,149,835 49,588,579 47,626,042 89,579,413 448,033,045Unearned Premium 16,951,010 124,258,801 293 -27 0 0 0 141,210,077

Balance Sheet 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Undiscounted Premium Deficiency (DPAC) 83,314,000 0 0 83,314,000Undiscounted Future Costs Unearned Premium 224,524,000 0 0 224,524,000PFAD included in IBNR 14,552,000 25,404,000 15,977,000 8,724,000 7,157,000 13,595,000 85,409,000

Undiscounted IBNR Provision 76,110,000 77,049,000 50,492,000 26,193,000 14,560,000 34,757,000 279,161,000

Premium Deficiency (DPAC) 86,844,000 0 0 86,844,000Future Costs on Unearned Premium 228,054,000 0 0 228,054,000

Memo Items 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Accident Years

Exhibit 9-A

Operational Report


Reporting Company:

Accounting Month:

FA System 5/28/2010 11:52:54 AM EST


Page 3 of 8

MEMBER'S SHARE

Administration Expense 946 2,424 0 0 0 0 0 3,370Expense Allowance 92,843 237,816 -922 -53 -9 0 0 329,675Claims Incurred 2,342,498 -304,559 398,642 -122,070 -30,447 -115,538 2,168,526

OPERATING RESULT -93,789 -2,719,825 302,305 -398,768 122,049 30,447 115,538 -2,642,043General Expenses 93,789 1,215,014 -922 -53 -9 0 0 1,307,819Change in Premium Deficiency (DPAC) 974,774 974,774

Change in IBNR Provision 1,529,270 -681,521 351,136 -132,657 -49,115 -78,478 938,635

Premiums Earned 837,687 -3,176 -179 -30 0 0 834,302Change in Unearned Premium -320,424 16,496 0 0 0 0 0 -303,928Premiums Written 320,424 821,191 -3,176 -179 -30 0 0 1,138,230

Change in Outstanding Losses 571,574 56,810 -45,252 -22,747 -16,653 -165,128 378,604Paid Expenses 731 30,880 9,859 9,337 6,202 11,099 68,108Paid Losses 240,923 289,272 82,899 23,997 29,119 116,969 783,179

Expense Allowance 182,257 1,325,553 47,571 -487 -39 -16 -7 1,554,832Claims Incurred 5,157,522 2,894,798 250,157 -119,984 -32,292 -293,190 7,857,011Change in IBNR Provision 2,910,615 -1,296,559 -6,797 -276,504 -174,420 -318,468 837,867

Administration Expense 2,610 20,080 875 3 0 0 0 23,568

OPERATING RESULT -184,867 -6,558,850 454,488 -251,326 119,901 32,249 293,171 -6,095,234General Expenses 184,867 4,579,882 -1,872,428 -484 -39 -16 -7 2,891,775Change in Premium Deficiency (DPAC) 3,234,249 -1,920,874 1,313,375

Premiums Earned 3,178,554 1,476,858 -1,653 -122 -59 -26 4,653,552Change in Unearned Premium -631,290 -1,429,309 1,310,720 0 0 0 0 -749,879Premiums Written 631,290 4,607,863 166,138 -1,653 -122 -59 -26 5,403,431

Change in Outstanding Losses 1,585,304 1,839,855 -361,769 -124,954 -181,194 -584,969 2,172,273Paid Expenses 1,117 157,751 68,648 46,059 37,519 65,996 377,090Paid Losses 660,486 2,193,751 550,075 235,415 285,803 544,251 4,469,781

Fiscal Year To Date 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Accident Years

Sharing Percentage 3.724205 3.724205 3.792124 3.780530 3.939925 4.059126

This Month 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Exhibit 9-A

Operational Report


Reporting Company:

Accounting Month:

FA System 5/28/2010 11:52:54 AM EST


Page 4 of 8

Administration Expense 2,610 32,449 52,267 44,349 37,344 49,235 718,071 936,325Expense Allowance 182,257 2,239,833 2,414,703 2,310,244 2,006,494 1,844,798 18,306,524 29,304,853Claims Incurred 5,157,522 12,973,930 10,714,049 7,581,682 6,825,190 61,654,357 104,906,730

OPERATING RESULT -184,867 -7,485,499 -6,935,362 -4,959,398 -2,495,843 -2,066,718 -15,265,370 -39,393,057General Expenses 184,867 5,506,531 2,466,970 2,354,593 2,043,838 1,894,033 19,024,595 33,475,427Premium Deficiency (DPAC) 3,234,249 0 0 3,234,249

IBNR Provision 2,910,615 2,985,501 1,980,166 1,103,928 643,453 1,326,930 10,950,593

Premiums Earned 3,178,554 8,505,538 8,109,244 7,129,677 6,652,505 65,413,582 98,989,100Change in Unearned Premium -631,290 -4,627,652 -11 1 0 0 0 -5,258,952Premiums Written 631,290 7,806,206 8,505,549 8,109,243 7,129,677 6,652,505 65,413,582 104,248,052

Outstanding Losses 1,585,304 5,139,146 3,143,504 1,953,752 1,933,201 3,313,220 17,068,127Paid Expenses 1,117 208,737 281,150 147,210 186,526 2,987,157 3,811,897Paid Losses 660,486 4,640,546 5,309,229 4,376,792 4,062,010 54,027,050 73,076,113

MEMBER'S SHARE

IBNR Provision 2,910,615 2,985,501 1,980,166 1,103,928 643,453 1,326,930 10,950,593Outstanding Losses including IBNR Provision 4,495,919 8,124,647 5,123,670 3,057,680 2,576,654 4,640,150 28,018,720

Outstanding Losses 1,585,304 5,139,146 3,143,504 1,953,752 1,933,201 3,313,220 17,068,127Unearned Premium 631,290 4,627,652 11 -1 0 0 0 5,258,952

Balance Sheet 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Undiscounted Premium Deficiency (DPAC) 3,102,784 0 0 3,102,784Undiscounted Future Costs Unearned Premium 8,361,734 0 0 8,361,734PFAD included in IBNR 541,946 963,351 604,015 343,719 290,512 496,748 3,240,291

Undiscounted IBNR Provision 2,834,492 2,921,794 1,908,865 1,031,985 591,009 1,232,411 10,520,556

Premium Deficiency (DPAC) 3,234,249 0 0 3,234,249Future Costs on Unearned Premium 8,493,198 0 0 8,493,198

Memo Items 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Accident Years

Sharing Percentage 3.724205 3.724205 3.792124 3.780530 3.939925 4.059126

Years To Date 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Exhibit 9-A

Operational Report


Reporting Company:

Accounting Month:

FA System 5/28/2010 11:52:54 AM EST


Page 5 of 8

- Paid Expenses 731 30,880 9,859 9,337 6,202 11,099 68,108- Paid Losses 240,923 289,272 82,899 23,997 29,119 116,969 783,179

= Member's Share of Pool Results 226,635 339,297 -322,406 -92,884 -33,355 -35,321 -128,068 -46,102- Administration Expense 946 2,424 0 0 0 0 0 3,370

+ Premiums Written 320,424 821,191 -3,176 -179 -30 0 0 1,138,230- Expense Allowance 92,843 237,816 -922 -53 -9 0 0 329,675= Net 227,581 583,375 -2,254 -126 -21 0 0 808,555

Member's Share of Pool Results 2011 2010 2009 2008 2007 2006 2005 & Prior Total

- Paid Losses 192,719 183,172 43,216 14,491 -106 65,685 499,177- Paid Expenses 139 3,159 8,333 5,955 2,116 13,341 33,043= Net Due to/(from) Risk Sharing Pool -76,672 -86,625 135,508 41,335 12,909 33,311 49,042 108,808

+ Member's Share of Pool Results -226,635 -339,297 322,406 92,884 33,355 35,321 128,068 46,102Ceded to the Pool by Member+ Premiums, Net of Expense Allowance

149,963 445,530 -567 594,926

Account Reconciliation 2011 2010 2009 2008 2007 2006 2005 & Prior Total

The amount must be paid by

Interest may be charged after due date

Accident Years

Exhibit 9-A

Operational Report


Reporting Company:

Accounting Month:

FA System 5/28/2010 11:52:54 AM EST


Page 6 of 8

REPORTED BY MEMBERThis Month

= Transferred 206,561 613,675 -782 819,454- Expense Allowance 56,598 168,145 -215 224,528= Net (B) 149,963 445,530 -567 594,926

+ Gross 243,012 721,970 -921 964,061- Retained 36,451 108,295 -139 144,607

Premium 2011 2010 2009 2008 2007 2006 2005 & Prior Total

+ Gross Paid Expenses 164 3,716 9,803 7,006 2,489 15,695 38,873- Retained Paid Expenses 25 557 1,470 1,051 373 2,354 5,830= Transferred Paid Expenses (D) 139 3,159 8,333 5,955 2,116 13,341 33,043

= Transferred Paid Losses (C) 192,719 183,172 43,216 14,491 -106 65,685 499,177

+ Gross Paid Losses 226,728 215,497 50,842 17,048 -125 77,277 587,267- Retained Paid Losses 34,009 32,325 7,626 2,557 -19 11,592 88,090

Normal Payments 2011 2010 2009 2008 2007 2006 2005 & Prior Total

+ Gross Paid Expenses- Retained Paid Expenses+ Gross Paid Losses

= Transferred Paid Losses

+ Gross Paid Losses- Retained Paid Losses

Special Payments 2011 2010 2009 2008 2007 2006 2005 & Prior Total

+ Gross Paid Expenses 164 3,716 9,803 7,006 2,489 15,695 38,873- Retained Paid Expenses 25 557 1,470 1,051 373 2,354 5,830= Transferred Paid Expenses 139 3,159 8,333 5,955 2,116 13,341 33,043

= Transferred Paid Losses 192,719 183,172 43,216 14,491 -106 65,685 499,177

+ Gross Paid Losses 226,728 215,497 50,842 17,048 -125 77,277 587,267- Retained Paid Losses 34,009 32,325 7,626 2,557 -19 11,592 88,090

Total Payments 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Accident Years

Exhibit 9-A

Operational Report


Reporting Company:

Accounting Month:

FA System 5/28/2010 11:52:54 AM EST


Page 7 of 8

REPORTED BY MEMBERYears To Date

Outstanding Losses 191,816 763,719 533,826 400,501 129,923 463,276 2,483,061Paid Losses and Expenses 134,936 644,687 700,398 681,135 491,263 4,098,861 6,751,280

Losses and Expenses 326,752 1,408,406 1,234,224 1,081,636 621,186 4,562,137 9,234,341Outstanding Losses @ previous fiscal year end 599,805 560,082 502,972 118,892 528,206 2,309,957

Earned Premiums 426,573 1,142,352 1,080,858 1,004,708 953,739 5,771,576 10,379,806

Premiums 72,495 1,017,122 1,142,352 1,080,859 1,004,708 953,739 5,771,576 11,042,851Paid Losses 134,858 639,741 694,984 657,751 477,492 3,732,371 6,337,197Paid Expenses 78 4,946 5,414 23,384 13,771 366,490 414,083

Retention 2011 2010 2009 2008 2007 2006 2005 & Prior Total

+ Paid Losses and Paid Expenses 764,643 3,653,241 3,969,169 3,860,271 2,784,276 24,052,403 39,084,003Earned Premiums 2,417,249 6,473,357 6,126,302 5,694,512 5,405,037 34,078,943 60,195,400

+ Outstanding Losses 1,086,957 4,327,756 3,025,228 2,269,638 736,221 2,622,915 14,068,715

= Losses and Expenses 1,851,600 7,980,997 6,994,397 6,129,909 3,520,497 26,675,318 53,152,718Outstanding Losses @ previous fiscal year end 3,398,900 3,174,013 2,850,305 673,708 2,990,849 13,087,775

Paid Expenses 439 28,034 30,670 132,504 78,042 2,080,398 2,350,087

- Expense Allowance 112,561 1,583,612 1,802,196 1,658,484 1,491,086 1,448,553 9,484,333 17,580,825+ Premiums 410,806 5,763,717 6,473,358 6,126,302 5,694,512 5,405,037 34,078,943 63,952,675

Paid Losses 764,204 3,625,207 3,938,499 3,727,767 2,706,234 21,972,005 36,733,916= Net 298,245 4,180,105 4,671,162 4,467,818 4,203,426 3,956,484 24,594,610 46,371,850

Transferred 2011 2010 2009 2008 2007 2006 2005 & Prior Total

Accident Years

Exhibit 9-A

Operational Report


Reporting Company:

Accounting Month:

FA System 5/28/2010 11:52:54 AM EST


Page 8 of 8

Expense Allowance 1,554,832 375,400 375,400 241,345 205,471 1,858,816 1,404,721 454,095Claims Incurred 7,857,011 1,468,583 1,468,963 1,303,567 1,303,717 8,187,273 5,346,088 2,841,185Change in IBNR Provision 837,867 273,765 274,069 296,618 296,662 792,421 -406,133 1,198,554

Administration Expense 23,568 7,820 7,820 5,046 4,296 29,866 23,906 5,960

OPERATING RESULT -6,095,234 -1,221,966 -1,132,145 -795,436 -673,351 -6,980,558 -3,391,591 -3,588,967General Expenses 2,891,775 639,744 605,406 272,188 172,682 3,692,055 1,990,796 1,701,259Change in Premium Deficiency (DPAC) 1,313,375 256,524 222,186 25,797 -37,085 1,803,373 562,169 1,241,204

Premiums Earned 4,653,552 886,361 942,224 780,319 803,048 4,898,770 3,945,293 953,477Change in Unearned Premium -749,879 -417,111 -361,248 -60,609 87,124 -1,554,753 -937,992 -616,761Premiums Written 5,403,431 1,303,472 1,303,472 840,928 715,924 6,453,523 4,883,285 1,570,238

Change in Outstanding Losses 2,172,273 339,795 339,871 214,478 197,026 2,440,435 1,889,105 551,330Paid Expenses 377,090 59,628 59,628 52,120 54,240 389,986 304,994 84,992Paid Losses 4,469,781 795,395 795,395 740,351 755,789 4,564,431 3,558,122 1,006,309

Fiscal Year

FY Apr 2010[1]

EstimateMay 2010[2]

EstimateJun 2010[3]

EstimateNov 2009[4]

EstimateDec 2009[5]

Year to Dateat

CY Jun 2010[6]

Year to Dateat

CY May 2010[7]

CalendarMonthJun 2010[8]

PROJECTIONS

IBNR Provision 10,950,593 11,224,360 11,498,429Outstanding Losses including IBNR Provision 28,018,720 28,632,282 29,246,222

Outstanding Losses 17,068,127 17,407,922 17,747,793Unearned Premium 5,258,952 5,676,063 6,037,311

Balance Sheet As AtApr 2010

Estimate AtMay 2010

Estimate AtJun 2010

Undiscounted Premium Deficiency (DPAC) 3,102,784 3,348,879 3,562,016Undiscounted Future Costs Unearned Premium 8,361,734 9,024,940 9,599,324PFAD included in IBNR 3,240,291 3,325,712 3,411,144

Premium Deficiency (DPAC) 3,234,249 3,490,772 3,712,958Future Costs on Unearned Premium 8,493,198 9,166,832 9,750,267Undiscounted IBNR Provision 10,520,556 10,783,157 11,045,808

MEMO ITEMS

Exhibit 9-A

Government Line ReportRSP:

Reporting Company:

Accounting Month:

FA System 5/28/2010 1:44:04 PM EST Page 1 of 10


Estimated Calendar Year Transferred PremiumsFor __ Months Ending ______________

Personal Accident 2,297,993 704,725 2,176,487 1,316,362 963,960 2,528,889 1,679,204 849,685

Liability 2,371,167 765,483 2,124,482 1,200,136 914,805 2,409,813 1,710,566 699,247

Other 984,849 318,629 983,158 517,028 395,713 1,104,473 827,244 277,229

Total All Lines 5,654,009 1,788,837 5,284,127 3,033,526 2,274,478 6,043,175 4,217,014 1,826,161

____________________________ ____________________________________________________________________________________________

Transfer To Pool Member's Share of Pool

Government Line Written PremiumFiscal Year 2010Nov 1 to Apr 30

WrittenPremium For

Nov & Dec 2009

Written PremiumFiscal Year 2010

For Nov 1 to Apr 30

EstimatedPremiums For

May 2010 & Jun 2010

EstimatedPremiums For

Nov & Dec 2009

Est PremiumsFor CY 2010At Jun 2010

Est PremiumsFor CY 2010At May 2010

Est PremiumsFor MonthJun 2010

[1] [2] [3] [4] [5] [6]=[3]+[4]-[5] [7] [8]=[6]-[7]

Exhibit 9-B


Reporting Company:

Accounting Month:



Personal Accident 2,388,723 2,508,890 480,903 2,989,793 2,642,168 2,528,889 2,181,264 1,735,804 445,460

Liability 2,525,385 2,485,958 321,365 2,807,323 2,696,745 2,409,813 2,299,235 1,845,345 453,890

Other 1,055,946 1,124,646 103,456 1,228,102 1,209,868 1,104,473 1,086,239 877,110 209,129

Total All Lines 5,970,054 6,119,494 905,724 7,025,218 6,548,781 6,043,175 5,566,738 4,458,259 1,108,479

_________ _______________________________________________________________________________________________________________________

Transfer To Pool

Member's Share of Pool

Government Line

UnearnedPremium

At Apr 30 2010

UnearnedAt Apr 30 2010

EstimatedChange in UPR

May 2010 & Jun 2010

EstimatedUnearned

At Jun 30 2010

Estimated UnearnedPremium AtDec 31, 2009

Estimated WrittenPremium For CY 2010

At Jun 2010

Estimated EarnedPremium For CY 2010

At Jun 2010

Estimated EarnedPremium For CY 2010

At May 2010

Est Earned PremiumFor MonthJun 2010

[1] [2] [3] [4]=[2]+[3] [5] [6] [7]=[6]+[5]-[4] [8] [9]=[7]-[8]

Estimated Unearned Premium at _________&Earned in ___ Months Ending ___________

Exhibit 9-B


Reporting Company:

Accounting Month:



Estimated Calendar Year Paid LossesFor __ Months Ending ____________

2008 21,495 478 7,684 3,358 -3,197 14,239 11,023 3,216

2007 0 0 -52 -14 -440 374 734 -360

2006 0 0 -2 -76 863 -941 -500 -441

2009 964,140 247,256 635,249 11,176 397,994 248,431 245,476 2,955

Other 2005 & prior 82,578 0 3,075 -30 4,192 -1,147 -4,357 3,210

2011

2010 347,274 0 400,293 410,420 0 810,713 639,896 170,817

All Years 1,415,487 247,734 1,046,247 424,834 399,412 1,071,669 892,272 179,397

2008 1,075,491 335,779 938,355 255,322 320,481 873,196 775,155 98,041

2007 27,279 2,550 113,855 35,514 52,622 96,747 94,368 2,379

2009 2,492,491 474,839 2,030,348 359,394 501,649 1,888,093 1,459,654 428,439

2011

2010 74,214 0 80,584 174,388 0 254,972 87,731 167,241

2006 191 0 113,351 26,272 60,426 79,197 83,968 -4,771

Personal Accident 2005 & prior 535,163 1,447 112,613 30,416 37,204 105,825 108,937 -3,112

All Years 4,204,829 814,615 3,389,106 881,306 972,382 3,298,030 2,609,813 688,217

2008 12,419 -849 80,975 54,336 90,459 44,852 -20,333 65,185

Liability 2005 & prior 6 1 165,961 71,454 76,900 160,515 102,439 58,076

2006 0 0 69,127 25,896 7,726 87,297 63,077 24,220

2007 0 0 53,960 14,140 34,464 33,636 18,834 14,802

2011

2010 255,093 0 287,687 326,724 0 614,411 445,040 169,371

2009 576,726 173,542 484,015 20,006 262,997 241,024 221,824 19,200

All Years 844,244 172,694 1,141,725 512,556 472,546 1,181,735 830,881 350,854

____________________________ _________________________________________________________________________________________Transfer To Pool Member's Share of Pool

Government Line Paid Losses ForFiscal Year 2010Nov 1 to Apr 30

Paid LossesFor

Nov & Dec 2009

Paid LossesFiscal Year 2010Nov 1 to Apr 30

EstimatedPaid Losses For

May 2010 & Jun 2010

EstimatedPaid Losses ForNov & Dec 2009

Estimated PaidLosses For CY 2010

At Jun 2010

Est Paid LossesFor CY 2010At May 2010

Est Paid LossesFor MonthJun 2010

[1] [2] [3] [4] [5] [6]=[3]+[4]-[5] [7] [8]=[6]-[7]

2009 4,033,357 895,637 3,149,612 390,576 1,162,640 2,377,548 1,926,954 450,594

2010 676,581 0 768,564 911,532 0 1,680,096 1,172,667 507,429

2011

2008 1,109,405 335,408 1,027,014 313,016 407,743 932,287 765,845 166,442

Total All Lines 2005 & prior 617,747 1,448 281,649 101,840 118,296 265,193 207,019 58,174

2006 191 0 182,476 52,092 69,015 165,553 146,545 19,008

2007 27,279 2,550 167,763 49,640 86,646 130,757 113,936 16,821

All Years 6,464,560 1,235,043 5,577,078 1,818,696 1,844,340 5,551,434 4,332,966 1,218,468

Exhibit 9-B


Reporting Company:

Accounting Month:



Estimated Calendar Year Paid ExpensesFor __ Months Ending _______________

2008 4,228 225 1,708 184 61 1,831 1,797 34

2007 0 0 461 16 -13 490 566 -76

2006 0 0 727 234 10 951 621 330

2009 3,777 341 3,476 302 1,463 2,315 2,061 254

Other 2005 & prior 18,558 0 992 236 325 903 701 202

2011

2010 0 0 288 4,992 0 5,280 33,282 -28,002

All Years 26,563 566 7,652 5,964 1,846 11,770 39,028 -27,258

2008 391,515 79,698 110,364 18,292 29,888 98,768 85,692 13,076

2007 6,475 3,410 11,524 566 -895 12,985 13,187 -202

2009 851,702 151,585 220,841 28,958 84,753 165,046 118,124 46,922

2011

2010 3,406 0 347 24,110 0 24,457 7,930 16,527

2006 402 402 9,445 964 834 9,575 9,595 -20

Personal Accident 2005 & prior 2,082 0 9,734 1,688 2,265 9,157 8,278 879

All Years 1,255,582 235,095 362,255 74,578 116,845 319,988 242,806 77,182

2008 19,265 1,601 16,074 5,092 743 20,423 14,285 6,138

Liability 2005 & prior 520 0 21,014 5,636 6,015 20,635 16,670 3,965

2006 0 0 13,784 2,742 2,784 13,742 10,040 3,702

2007 1 0 20,838 3,180 5,457 18,561 11,630 6,931

2011

2010 25 0 664 39,542 0 40,206 10,721 29,485

2009 794 29 3,660 192 1,277 2,575 2,587 -12

All Years 20,605 1,630 76,034 56,384 16,276 116,142 65,933 50,209

___________________________ ___________________________________________________________________________________________Transfer To Pool Member's Share of Pool

Government Line Paid Expenses ForFiscal Year 2010Nov 1 to Apr 30

Paid ExpensesFor

Nov & Dec 2009

Paid ExpensesFiscal Year 2010Nov 1 to Apr 30

EstimatedPaid Expenses For

May 2010 & Jun 2010

EstimatedPaid Expenses ForNov & Dec 2009

Estimated PaidExpenses For CY 2010

At Jun 2010

Est Paid ExpensesFor CY 2010At May 2010

Est Paid ExpensesFor MonthJun 2010

[1] [2] [3] [4] [5] [6]=[3]+[4]-[5] [7] [8]=[6]-[7]

2009 856,273 151,955 227,977 29,452 87,493 169,936 122,772 47,164

2010 3,431 0 1,299 68,644 0 69,943 51,933 18,010

2011

2008 415,008 81,524 128,146 23,568 30,692 121,022 101,774 19,248

Total All Lines 2005 & prior 21,160 0 31,740 7,560 8,605 30,695 25,649 5,046

2006 402 402 23,956 3,940 3,628 24,268 20,256 4,012

2007 6,476 3,410 32,823 3,762 4,549 32,036 25,383 6,653

All Years 1,302,750 237,291 445,941 136,926 134,967 447,900 347,767 100,133

Exhibit 9-B


Reporting Company:

Accounting Month:



Estimated Outstanding Losses & IBNR ProvisionAs at __________________________

2008 16,071 55,290 -1,881 53,409 34,818 -2,265 32,553

2007 2 34,308 1 34,309 19,385 -1,064 18,321

2006 0 6,275 -220 6,055 2,088 -118 1,970

2009 71,710 64,637 1,585 66,222 37,550 -3,784 33,766

Other 2005 & prior 0 21,382 -1,790 19,592 12,217 -395 11,822

2011

2010 125,907 115,567 66,262 181,829 212,182 82,528 294,710

All Years 213,690 297,459 63,957 361,416 318,240 74,902 393,142

2008 5,647,440 3,892,253 -131,309 3,760,944 2,451,841 -159,483 2,292,358

2007 85,804 613,568 14 613,582 346,688 -19,030 327,658

2009 7,778,179 6,071,341 148,890 6,220,231 3,527,045 -355,353 3,171,692

2011

2010 1,138,082 1,345,845 771,650 2,117,495 2,470,970 961,083 3,432,053

2006 12,097 598,505 -20,876 577,629 199,212 -11,298 187,914

Personal Accident 2005 & prior 323,057 766,827 -43,323 723,504 319,600 -12,842 306,758

All Years 14,984,659 13,288,339 725,046 14,013,385 9,315,356 403,077 9,718,433

2008 1,944,861 1,919,736 -64,795 1,854,941 1,209,277 -78,660 1,130,617

Liability 2005 & prior 287,737 670,404 -39,418 630,986 285,963 -10,555 275,408

2006 4 629,501 -21,977 607,524 209,522 -11,883 197,639

2007 25,675 744,424 -3 744,421 420,617 -23,088 397,529

2011

2010 253,522 383,301 219,766 603,067 703,737 273,719 977,456

2009 524,005 1,310,754 32,144 1,342,898 761,460 -76,716 684,744

All Years 3,035,804 5,658,120 125,717 5,783,837 3,590,576 72,817 3,663,393

_____________ _____________________________________________________________________________________________Transfer To Pool Member's Share of Pool

Government Line OutstandingLosses

Outstanding LossesAt Apr 30 2010

Estimated Change inOutstanding Losses ForMay 2010 & Jun 2010

EstimatedOutstanding Losses

At Jun 30 2010

IBNR AtApr 30 2010

EstimatedChange In IBNR

EstimatedIBNR At

Jun 30 2010

[1] [2] [3] [4]=[2]+[3] [5] [6] [7]=[5]+[6]

2009 8,373,894 7,446,732 182,619 7,629,351 4,326,055 -435,853 3,890,202

2010 1,517,511 1,844,713 1,057,678 2,902,391 3,386,889 1,317,330 4,704,219

2011

2008 7,608,372 5,867,279 -197,985 5,669,294 3,695,936 -240,408 3,455,528

Total All Lines 2005 & prior 610,794 1,458,613 -84,531 1,374,082 617,780 -23,792 593,988

2006 12,101 1,234,281 -43,073 1,191,208 410,822 -23,299 387,523

2007 111,481 1,392,300 12 1,392,312 786,690 -43,182 743,508

All Years 18,234,153 19,243,918 914,720 20,158,638 13,224,172 550,796 13,774,968

Exhibit 9-B


Reporting Company:

Accounting Month:



Estimated Calendar Year Incurred LossesFor __ Months Ending ________________

2008 25,723 16,071 43,909 -2,115 -2,251 136

2007 0 2 2 0 0 0

2006 0 0 0 0 0 0

2009 967,917 71,710 357,402 682,225 686,488 -4,263

Other 2005 & prior 101,136 0 0 101,136 95,874 5,262

2011

2010 347,274 125,907 0 473,181 286,248 186,933

All Years 1,442,050 213,690 401,313 1,254,427 1,066,359 188,068

2008 1,467,006 5,647,440 6,821,411 293,035 -220,339 513,374

2007 33,754 85,804 152,760 -33,202 -3,462 -29,740

2009 3,344,193 7,778,179 5,842,057 5,280,315 4,816,974 463,341

2011

2010 77,620 1,138,082 0 1,215,702 540,529 675,173

2006 593 12,097 12,692 -2 -1 -1

Personal Accident 2005 & prior 537,245 323,057 469,760 390,542 521,998 -131,456

All Years 5,460,411 14,984,659 13,298,680 7,146,390 5,655,699 1,490,691

2008 31,684 1,944,861 1,680,242 296,303 205,799 90,504

Liability 2005 & prior 526 287,737 289,338 -1,075 -1,076 1

2006 0 4 2 2 1 1

2007 1 25,675 25,673 3 3 0

2011

2010 255,118 253,522 0 508,640 302,349 206,291

2009 577,520 524,005 548,326 553,199 557,847 -4,648

All Years 864,849 3,035,804 2,543,581 1,357,072 1,064,923 292,149

_______________________________________________________________________________________Transfer To Pool

Government Line Paid Losses & ExpensesFor Fiscal Year 2010

At Apr 30 2010

OutstandingLosses At

Apr 30 2010

OutstandingLosses At

Oct 31 2009

Incurred LossesFor Fiscal Year 2010

At Apr 30 2010

Incurred LossesFor Fiscal Year 2010

At Mar 31 2010

Incurred LossesFor MonthApr 2010

[1] [2] [3] [4]=[1]+[2]-[3] [5] [6]=[4]-[5]

2009 4,889,630 8,373,894 6,747,785 6,515,739 6,061,309 454,430

2010 680,012 1,517,511 0 2,197,523 1,129,126 1,068,397

2011

2008 1,524,413 7,608,372 8,545,562 587,223 -16,791 604,014

Total All Lines 2005 & prior 638,907 610,794 759,098 490,603 616,796 -126,193

2006 593 12,101 12,694 0 0 0

2007 33,755 111,481 178,435 -33,199 -3,459 -29,740

All Years 7,767,310 18,234,153 16,243,574 9,757,889 7,786,981 1,970,908

Exhibit 9-B


Reporting Company:

Accounting Month:



Estimated Calendar Year Incurred LossesFor __ Months Ending ________________

2008 16,070 53,409 55,745 32,553 29,745 16,542 7,200 9,342

2007 864 34,309 35,023 18,321 22,252 -3,781 -932 -2,849

2006 10 6,055 6,899 1,970 2,604 -1,468 71 -1,539

2009 250,746 66,222 254,856 33,766 330,068 -234,190 -217,325 -16,865

Other 2005 & prior -244 19,592 24,928 11,822 13,621 -7,379 -9,141 1,762

2011

2010 815,993 181,829 0 294,710 0 1,292,532 1,095,199 197,333

All Years 1,083,439 361,416 377,451 393,142 398,290 1,062,256 875,072 187,184

2008 971,964 3,760,944 4,602,230 2,292,358 2,455,745 -32,709 -412,214 379,505

2007 109,732 613,582 693,016 327,658 440,312 -82,356 -46,281 -36,075

2009 2,053,139 6,220,231 4,551,598 3,171,692 5,894,845 998,619 1,141,875 -143,256

2011

2010 279,429 2,117,495 0 3,432,053 0 5,828,977 3,300,512 2,528,465

2006 88,772 577,629 673,193 187,914 254,151 -73,029 -28,871 -44,158

Personal Accident 2005 & prior 114,982 723,504 848,984 306,758 372,910 -76,650 -30,486 -46,164

All Years 3,618,018 14,013,385 11,369,021 9,718,433 9,417,963 6,562,852 3,924,535 2,638,317

2008 65,275 1,854,941 1,769,957 1,130,617 944,448 336,428 70,695 265,733

Liability 2005 & prior 181,150 630,986 791,505 275,408 354,395 -58,356 -39,074 -19,282

2006 101,039 607,524 627,142 197,639 236,765 42,295 23,803 18,492

2007 52,197 744,421 731,854 397,529 464,989 -2,696 32,642 -35,338

2011

2010 654,617 603,067 0 977,456 0 2,235,140 1,554,473 680,667

2009 243,599 1,342,898 1,092,744 684,744 1,415,229 -236,732 -137,363 -99,369

All Years 1,297,877 5,783,837 5,013,202 3,663,393 3,415,826 2,316,079 1,505,176 810,903

_______________________________________________________________________________________________________________________Member's Share of Pool

Government Line Est Paid Losses &Expenses For CY 2010

At Jun 30 2010

Estimated OutstandingExcluding IBNR

As at Jun 30 2010

Estimated OutstandingExcluding IBNR

As at Dec 31 2009

EstimatedIBNR At

Jun 30 2010

EstimatedIBNR

As at Dec 31 2009

Est Incurred LossesFor CY 2010At Jun 2010

Est Incurred LossesFor CY 2010At May 2010

Est Incurred LossesFor MonthJun 2010

[1] [2] [3] [4] [5] [6]=[1]+([2]-[3])+([4]-[5])

[7] [8]=[6]-[7]

2009 2,547,484 7,629,351 5,899,198 3,890,202 7,640,142 527,697 787,187 -259,490

2010 1,750,039 2,902,391 0 4,704,219 0 9,356,649 5,950,184 3,406,465

2011

2008 1,053,309 5,669,294 6,427,932 3,455,528 3,429,938 320,261 -334,319 654,580

Total All Lines 2005 & prior 295,888 1,374,082 1,665,417 593,988 740,926 -142,385 -78,701 -63,684

2006 189,821 1,191,208 1,307,234 387,523 493,520 -32,202 -4,997 -27,205

2007 162,793 1,392,312 1,459,893 743,508 927,553 -88,833 -14,571 -74,262

All Years 5,999,334 20,158,638 16,759,674 13,774,968 13,232,079 9,941,187 6,304,783 3,636,404

Exhibit 9-B


Reporting Company:

Accounting Month:



2009 4,233,742 -431,512 3,802,230 4,326,055 -435,853 3,890,202 1,395,917 -66,214 1,329,703

2010 3,298,310 1,270,831 4,569,141 3,386,889 1,317,330 4,704,219 630,627 331,218 961,845

2011

2008 3,562,854 -236,738 3,326,116 3,695,936 -240,408 3,455,528 1,127,381 -30,906 1,096,475

Total All Lines 2005 & prior 587,656 -21,800 565,856 617,780 -23,792 593,988 232,054 -11,922 220,132

2006 377,338 -21,614 355,724 410,822 -23,299 387,523 185,482 -9,201 176,281

2007 735,422 -41,779 693,643 786,690 -43,182 743,508 244,944 -6,682 238,262

All Years 12,795,322 517,388 13,312,710 13,224,172 550,796 13,774,968 3,816,405 206,293 4,022,698

2008 33,564 -2,230 31,334 34,818 -2,265 32,553 10,620 -291 10,329

2007 18,122 -1,030 17,092 19,385 -1,064 18,321 6,035 -164 5,871

2006 1,918 -110 1,808 2,088 -118 1,970 942 -46 896

2009 36,748 -3,745 33,003 37,550 -3,784 33,766 12,116 -575 11,541

Other 2005 & prior 11,858 -380 11,478 12,217 -395 11,822 3,923 -167 3,756

2011

2010 206,632 79,615 286,247 212,182 82,528 294,710 39,507 20,750 60,257

All Years 308,842 72,120 380,962 318,240 74,902 393,142 73,143 19,507 92,650

2008 2,363,556 -157,049 2,206,507 2,451,841 -159,483 2,292,358 747,891 -20,503 727,388

2007 324,095 -18,412 305,683 346,688 -19,030 327,658 107,945 -2,945 105,000

2009 3,451,781 -351,813 3,099,968 3,527,045 -355,353 3,171,692 1,138,094 -53,984 1,084,110

2011

2010 2,406,345 927,159 3,333,504 2,470,970 961,083 3,432,053 460,085 241,647 701,732

2006 182,975 -10,481 172,494 199,212 -11,298 187,914 89,942 -4,462 85,480

Personal Accident 2005 & prior 300,494 -11,424 289,070 319,600 -12,842 306,758 119,617 -6,297 113,320

All Years 9,029,246 377,980 9,407,226 9,315,356 403,077 9,718,433 2,663,574 153,456 2,817,030

2008 1,165,734 -77,459 1,088,275 1,209,277 -78,660 1,130,617 368,870 -10,112 358,758

Liability 2005 & prior 275,304 -9,996 265,308 285,963 -10,555 275,408 108,514 -5,458 103,056

2006 192,445 -11,023 181,422 209,522 -11,883 197,639 94,598 -4,693 89,905

2007 393,205 -22,337 370,868 420,617 -23,088 397,529 130,964 -3,573 127,391

2011

2010 685,333 264,057 949,390 703,737 273,719 977,456 131,035 68,821 199,856

2009 745,213 -75,954 669,259 761,460 -76,716 684,744 245,707 -11,655 234,052

All Years 3,457,234 67,288 3,524,522 3,590,576 72,817 3,663,393 1,079,688 33,330 1,113,018

__________________________________________________________________________________________________________________________Member's Share of Pool

Government Line UndiscountedIBNR At

Apr 30 2010

Estimated Change inUndiscounted IBNR AtMay 2010 & Jun 2010

EstimatedUndiscounted IBNRAs At Jun 30 2010

Discounted IBNRInclude PFAD At

Apr 30 2010

Estimated Change inDiscounted IBNR AtMay 2010 & Jun 2010

EstimatedDiscounted IBNRAt Jun 30 2010

PFADAt

Apr 30 2010

Estimated Change inPFAD

May 2010 & Jun 2010

EstimatedPFAD At

Jun 30 2010

[1] [2] [3]=[1]+[2] [4] [5] [6]=[4]+[5] [7] [8] [9]=[7]+[8]

Estimated IBNR (Undiscounted), IBNR And PFADAs at __________

Exhibit 9-B


Reporting Company:

Accounting Month:



Estimated Incurred Losses (Undiscounted)For __ Months Ending __________

2008 16,070 53,409 55,745 31,334 26,633 18,435 7,382 11,053

2007 864 34,309 35,023 17,092 19,653 -2,411 -803 -1,608

2006 10 6,055 6,899 1,808 2,191 -1,217 60 -1,277

2009 250,746 66,222 254,856 33,003 307,731 -212,616 -199,494 -13,122

Other 2005 & prior -244 19,592 24,928 11,478 12,418 -6,520 -8,941 2,421

2011

2010 815,993 181,829 0 286,247 0 1,284,069 1,079,358 204,711

All Years 1,083,439 361,416 377,451 380,962 368,626 1,079,740 877,562 202,178

2008 971,964 3,760,944 4,602,230 2,206,507 2,198,819 138,366 -367,548 505,914

2007 109,732 613,582 693,016 305,683 388,892 -52,911 -38,817 -14,094

2009 2,053,139 6,220,231 4,551,598 3,099,968 5,495,915 1,325,825 1,165,112 160,713

2011

2010 279,429 2,117,495 0 3,333,504 0 5,730,428 3,180,218 2,550,210

2006 88,772 577,629 673,193 172,494 213,805 -48,103 -24,676 -23,427

Personal Accident 2005 & prior 114,982 723,504 848,984 289,070 326,553 -47,981 -25,961 -22,020

All Years 3,618,018 14,013,385 11,369,021 9,407,226 8,623,984 7,045,624 3,888,328 3,157,296

2008 65,275 1,854,941 1,769,957 1,088,275 845,638 392,896 67,092 325,804

Liability 2005 & prior 181,150 630,986 791,505 265,308 312,502 -26,563 -33,181 6,618

2006 101,039 607,524 627,142 181,422 199,180 63,663 24,802 38,861

2007 52,197 744,421 731,854 370,868 410,687 24,945 33,135 -8,190

2011

2010 654,617 603,067 0 949,390 0 2,207,074 1,513,234 693,840

2009 243,599 1,342,898 1,092,744 669,259 1,319,454 -156,442 -122,134 -34,308

All Years 1,297,877 5,783,837 5,013,202 3,524,522 3,087,461 2,505,573 1,482,948 1,022,625

___________________________________________________________________________________________________________________________Member's Share of Pool

Government Line Est Paid Losses &Expenses For CY 2010

At Jun 30 2010

Est OutstandingExcluding IBNRAt Jun 30 2010

Est OutstandingExcluding IBNR

As at Dec 31, 2009

Est UndiscountedIBNR ProvisionAt Jun 30 2010

Est UndiscountedIBNR ProvisionAt Dec 31, 2009

Undiscounted IncurredLosses For CY 2010

At Jun 2010

Undiscounted IncurredLosses For CY 2010

At May 2010

Undiscounted IncurredLosses For Month

Jun 2010

[1] [2] [3] [4] [5] [6]=[1]+([2]-[3])+([4]-[5])

[7] [8]=[6]-[7]

2009 2,547,484 7,629,351 5,899,198 3,802,230 7,123,100 956,767 843,484 113,283

2010 1,750,039 2,902,391 0 4,569,141 0 9,221,571 5,772,810 3,448,761

2011

2008 1,053,309 5,669,294 6,427,932 3,326,116 3,071,090 549,697 -293,074 842,771

Total All Lines 2005 & prior 295,888 1,374,082 1,665,417 565,856 651,473 -81,064 -68,083 -12,981

2006 189,821 1,191,208 1,307,234 355,724 415,176 14,343 186 14,157

2007 162,793 1,392,312 1,459,893 693,643 819,232 -30,377 -6,485 -23,892

All Years 5,999,334 20,158,638 16,759,674 13,312,710 12,080,071 10,630,937 6,248,838 4,382,099

Exhibit 9-B


Reporting Company:

Accounting Month:



Estimated Effect of Discounting The Total OutstandingAs at _____________

2008 53,409 32,553 85,962 10,329 75,633 31,334 84,743 -9,110

2007 34,309 18,321 52,630 5,871 46,759 17,092 51,401 -4,642

2006 6,055 1,970 8,025 896 7,129 1,808 7,863 -734

2009 66,222 33,766 99,988 11,541 88,447 33,003 99,225 -10,778

Other 2005 & prior 19,592 11,822 31,414 3,756 27,658 11,478 31,070 -3,412

2011

2010 181,829 294,710 476,539 60,257 416,282 286,247 468,076 -51,794

All Years 361,416 393,142 754,558 92,650 661,908 380,962 742,378 -80,470

2008 3,760,944 2,292,358 6,053,302 727,388 5,325,914 2,206,507 5,967,451 -641,537

2007 613,582 327,658 941,240 105,000 836,240 305,683 919,265 -83,025

2009 6,220,231 3,171,692 9,391,923 1,084,110 8,307,813 3,099,968 9,320,199 -1,012,386

2011

2010 2,117,495 3,432,053 5,549,548 701,732 4,847,816 3,333,504 5,450,999 -603,183

2006 577,629 187,914 765,543 85,480 680,063 172,494 750,123 -70,060

Personal Accident 2005 & prior 723,504 306,758 1,030,262 113,320 916,942 289,070 1,012,574 -95,632

All Years 14,013,385 9,718,433 23,731,818 2,817,030 20,914,788 9,407,226 23,420,611 -2,505,823

2008 1,854,941 1,130,617 2,985,558 358,758 2,626,800 1,088,275 2,943,216 -316,416

Liability 2005 & prior 630,986 275,408 906,394 103,056 803,338 265,308 896,294 -92,956

2006 607,524 197,639 805,163 89,905 715,258 181,422 788,946 -73,688

2007 744,421 397,529 1,141,950 127,391 1,014,559 370,868 1,115,289 -100,730

2011

2010 603,067 977,456 1,580,523 199,856 1,380,667 949,390 1,552,457 -171,790

2009 1,342,898 684,744 2,027,642 234,052 1,793,590 669,259 2,012,157 -218,567

All Years 5,783,837 3,663,393 9,447,230 1,113,018 8,334,212 3,524,522 9,308,359 -974,147

_________________________________________________________________________________________________________________________Member's Share of Pool

Government Line Estimated OutstandingExcluding IBNR At

Jun 30 2010

EstimatedIBNR At

Jun 30 2010

Est TotalOutstanding

At Jun 30 2010

EstimatedPFAD

At Jun 30 2010

Total OutstandingDiscounted Excl PFAD

At Jun 30 2010

Estimated IBNRUndiscountedAt Jun 30 2010

Est Total OutstandingUndiscountedAt Jun 30 2010

Effect of DiscountingExcluding PFADAt Jun 30 2010

[1] [2] [3]=[1]+[2] [4] [5]=[3]-[4] [6] [7]=[1]+[6] [8]=[5]-[7]

2009 7,629,351 3,890,202 11,519,553 1,329,703 10,189,850 3,802,230 11,431,581 -1,241,731

2010 2,902,391 4,704,219 7,606,610 961,845 6,644,765 4,569,141 7,471,532 -826,767

2011

2008 5,669,294 3,455,528 9,124,822 1,096,475 8,028,347 3,326,116 8,995,410 -967,063

Total All Lines 2005 & prior 1,374,082 593,988 1,968,070 220,132 1,747,938 565,856 1,939,938 -192,000

2006 1,191,208 387,523 1,578,731 176,281 1,402,450 355,724 1,546,932 -144,482

2007 1,392,312 743,508 2,135,820 238,262 1,897,558 693,643 2,085,955 -188,397

All Years 20,158,638 13,774,968 33,933,606 4,022,698 29,910,908 13,312,710 33,471,348 -3,560,440

Exhibit 9-B

Management Information Report


Reporting Company:

Accounting Month: Download to CSV based on selection criteria

8/10/2010 10:33:57 AM EST


Page 1 of 2

2007 REPTD 0.9484 2,018,754 1,716,166 510,368 1,205,798 1,716,166 1,954,356 527,280 2,481,636 144.60 %

2006 REPTD 0.5438 1,048,461 891,193 258,430 632,763 891,193 1,110,861 190,277 1,301,138 146.00 %

SHARE 0.8022 1,314,688 364,574 950,114 1,314,688 816,288 539,321 1,355,609 103.11 % 9,730

SHARE 0.6206 986,455 277,740 708,715 986,455 590,319 201,148 791,467 80.23 % 8,063

2005 REPTD 0.3950 738,602 627,841 184,635 443,206 627,841 717,035 163,902 880,937 140.31 %

SHARE 0.4701 779,712 224,196 555,516 779,712 490,992 153,863 644,855 82.70 % 6,314

2004 REPTD 0.3382 659,846 560,875 147,242 413,633 560,875 441,998 81,027 523,025 93.25 %

2003 REPTD 0.4304 722,404 614,033 137,733 476,300 614,033 507,714 38,287 546,001 88.92 %

SHARE 0.3783 539,796 158,040 381,756 539,796 447,768 56,574 504,342 93.43 % 4,776

2002 REPTD 0.9976 1,335,187 1,134,934 265,776 869,158 1,134,934 2,150,952 287,306 2,438,258 214.84 %

SHARE 0.5767 656,101 193,388 462,713 656,101 726,418 73,750 800,168 121.96 % 7,174

2001 REPTD 0.2877 270,923 230,311 52,278 178,033 230,311 270,953 0 270,953 117.65 %

SHARE 0.3069 245,639 71,854 173,785 245,639 292,613 23,169 315,782 128.56 % 3,489

2000 SHARE 0.1749 121,866 34,103 87,763 121,866 146,033 6,587 152,620 125.24 % 2,094

1999 SHARE 0.0912 62,785 16,828 45,957 62,785 68,657 6,194 74,851 119.22 % 1,186

1998 SHARE 0.0126 13,005 3,533 9,472 13,005 10,360 459 10,819 83.19 % 206

Year Percentage Gross Premium

Transf.Premiums

1

ExpenseAllowance

2

NetPremiums3 = 1 - 2

EarnedPremiums

4

PaidClaims5

O/SClaims6

IncurredClaims7 = 5 + 6

ClaimsRatio8 = 7/4

Admin

Exhibit 9-C

Management Information Report


Reporting Company:

Accounting Month: Download to CSV based on selection criteria

8/10/2010 10:33:57 AM EST


Page 2 of 2

SHARE 5.5779 176,003 50,553 125,450 486

2011 REPTD 20.1757 748,966 636,621 190,986 445,635

SHARE 5.5779 9,263,461 2,653,563 6,609,898 2,259,288 289,255 2,016,924 2,306,179 102.08 % 36,668

2010 REPTD 17.6781 34,539,879 29,358,899 8,807,669 20,551,230 6,437,525 97,687 1,007,029 1,104,716 17.16 %

SHARE 5.5779 12,522,596 3,555,183 8,967,413 12,522,579 6,125,640 13,433,454 19,559,094 156.19 % 76,880

2009 REPTD 12.6846 33,502,973 28,477,608 8,543,375 19,934,233 28,477,605 18,668,786 36,225,768 54,894,554 192.76 %

2008 REPTD 8.9079 22,481,902 19,109,854 5,733,622 13,376,232 19,109,854 19,169,966 11,522,971 30,692,937 160.61 %

SHARE 4.3877 9,412,792 2,681,632 6,731,160 9,412,793 6,260,676 5,716,178 11,976,854 127.24 % 51,471

2007 SHARE 1.0275 1,859,304 523,261 1,336,043 1,859,304 1,160,933 848,560 2,009,493 108.08 % 9,739

Year Percentage Gross Premium

Transf.Premiums

1

ExpenseAllowance

2

NetPremiums3 = 1 - 2

EarnedPremiums

4

PaidClaims5

O/SClaims6

IncurredClaims7 = 5 + 6

ClaimsRatio8 = 7/4

Admin

SHARE 1.3874 37,954,203 10,808,448 27,145,755 30,774,011 17,425,952 23,076,181 40,502,133 131.61 % 218,276

Totals REPTD 3.0472 98,067,897 83,358,335 24,832,114 58,526,221 59,800,337 45,090,308 50,043,847 95,134,155 159.09 %

AN I.B.N.R. IS INCLUDED IN THE O/S CLAIMS SHARED RESULTS ONLY

Exhibit 9-C

ExFacForm2012.doc

FACILITY ASSOCIATION

RISK SHARING POOL (ONTARIO) EXPENSE FACTOR FORM

This Expense Factor Form is to be used by member companies in applying to Facility Association for consideration of their Expense Factor for the RISK SHARING POOL. (Please see attached for instructions) Co. # Co. Name 1. FSCO Expense Factor

- Based on the latest approved FSCO filing for Personal Vehicles - Private Passenger Automobiles. - Date of FSCO filing / / .

%

2. Adjustment for Claims Adjustment Expenses - If not already included in the FSCO Expense Factor.

Add: i) External/Allocated Loss Adjustment Cost ii) Internal/Unallocated Loss Adjustment Cost

% %

3. Add: Adjustment for Monthly Policy Service Charge - If the member company is charging a Monthly Policy Service Charge and is offsetting

it against underwriting expenses and therefore reducing its FSCO Expense Factor, then this item should be added back.

%

4. Subtract: Premium Taxes and Assessment of Health System Costs - If the member company has included provisions for Premium Taxes and/or Assessment

of Health System Costs in the FSCO Expense Factor, then these items should be taken out.

( ) %

5. Subtract: Professional Fees - As defined in the ‘Expense Factor Form - Instructions’ attached herewith. - This is a predetermined set percentage. - This expense will be reimbursed by Risk Sharing Pool to the members on an actual paid basis.

( ) %

6. Subtract: Contingent Profit Commission - If the member company has included a provision for Contingent Profit Commission in the FSCO Expense Factor, then this factor should be taken out.

( ) %

The Net Expense Factor for the member company [(1+2+3) - (4+5+6)]

% (A)

The Maximum Expense Factor as established by the Board of Directors for the year 20XX

% (B)

The Expense Factor Allowance to be used for the member company for the year 20XX is the lower of (A) or (B)

I, , a Fellow of the Canadian Institute of Actuaries, certify that the Company’s expense information provided in items 1 through 6 is consistent with the comparable information included in the Company’s latest approved FSCO filing for Personal Vehicles - Private Passenger Automobiles. Signature Date

EXHIBIT 10-A

of 3

FACILITY ASSOCIATION

RISK SHARING POOL (ONTARIO) Expense Factor Form - Instructions

Each member company is allocated a unique company number by I.B.C. for statistical reporting. This is the same number which you use for Facility Association and should be the same number which you will report on this Expense Factor Form. The name of the member company should correspond with the company number. If, within the same organization, there are several companies each with a separate company number, then a separate Expense Factor Form should be used for each company. Where there are several companies operating within a single company number and they have submitted more than one rate filing, these companies would still have to file a single Expense Factor Form; however they would have to indicate therein their Weighted Average Expense Factor. Where a member company is conducting its business through different distribution channels such as “group plan” the company may have filed separate rates, it would then have to calculate the Weighted Average Expense Factor for all such filings. The expenses to be reflected in the Expense Factor Form should be expressed as a percentage of written premiums. 1. The FSCO Expense Factor percentage is for that particular company with the same

company number. The Expense Factor percentage to be applied is the one which has been most

recently approved by FSCO for Personal Vehicles - Private Passenger Automobiles and not necessarily the one which was filed with FSCO.

For this purpose, it is assumed that the FSCO Expense Factor, as defined, makes

provision for categories of expense such as Commissions, Taxes, Assessments, Operating Expenses and possibly Loss Adjustment Expenses, but specifically excludes any provision for profit or return on equity and furthermore excludes any offsetting provision for the contribution of investment income on the cash flow from insurance operations.

EXHIBIT 10-A

RSP (Ontario) Expense Factor Form - Instructions

Page 2 of 3

2. For those companies which do not include in their expense factor filed with FSCO,

the External/Allocated Loss Adjustment Cost or the Internal/Unallocated Loss Adjustment Cost, then these expense factors should be added on.

Please note that some companies do include these expenses within their overall

expense factor filed with FSCO. In that case, this item should be left blank. 3. Some companies apply the Monthly Policy Service Charge to offset against their

underwriting expenses; as a result the expense factor is reduced by the Monthly Policy Service Charge earned. If your company has reduced its FSCO expense factor by such Monthly Policy Service Charge, you should add back the reduction for Monthly Policy Service Charge included in your FSCO filing, to a maximum as established by the Executive Committee of the Board from time to time.

Other companies add the Monthly Policy Service Charge to their investment income

or other underwriting income. If your company follows one of these practices, this item should be left blank.

4. Companies which include provisions for Premium Taxes and/or Assessment of

Health System Costs in their expense factor filed with FSCO should take out these provisions under this item. Otherwise, this item should be left blank.

For this purpose, Premium Taxes are narrowly defined to exclude other types of

expenses such as license fees, dues, assessments, etc. 5. Professional Fees here refers to specific first party, allocated legal and other

approved fees incurred for loss settlement purposes, which are as follows: (i) Accounting Services (ii) Actuarial Services (iii) Alternate Dispute Resolution Services (iv) Arbitration (v) Architectural Services (vi) Autopsy Reports (vii) Coroners’ Court transcripts (viii) Court Stenographers transcripts (ix) Engineering Services (x) First Party Legal (xi) Medical Reports (xii) Notarial Services (xiii) Translations Please note that companies do not have to calculate this percentage. The Risk

Sharing Pool will calculate the average percentage for the whole industry and apply the same percentage for all member companies. This figure is preprinted on the Form.

EXHIBIT 10-A

RSP (Ontario) Expense Factor Form - Instructions

Page 3 of 3

Member companies will be reimbursed for this expense on an actual paid basis. Members will however have to provide notification of such expenses to the Risk Sharing Pool for reimbursement.

6. The Risk Sharing Pool expense factor is intended to include a provision for regular

commission only. If the member company has made provision in their expense factor filed with FSCO for an additional expense for Contingent Profit Commission, then this provision should be taken out under this item. Otherwise, this item should be left blank.

7. The Executive Committee of the Board of Directors of the Facility Association will

before the end of September of each year establish the Maximum Expense Factor to be used for the subsequent calendar year.

Please note that although the Risk Sharing Pool does not require you to submit the back-up materials with the Expense Factor Form it does reserve its right to audit and as such, we request that you retain the appropriate back-up material for a minimum period of two years.

EXHIBIT 10-A

FACILITY ASSOCIATION UNINSURED AUTOMOBILE FUND

MEMBER PARTICIPATION STATEMENTFOR FISCAL QUARTER ENDING:________________


Page 1 of 1

Industry Earned Premium 209,333,101 209,333,101 209,333,101 214,220,668 231,078,334 2,782,421,875Member Earned Premium 6,495,362 6,495,362 6,495,362 7,228,548 7,723,424 51,771,506Member Share Ratio Percentage 3.102883 % 3.102883 % 3.102883 % 3.374347 % 3.342340 %

Jurisdiction: _________________________________ Company : __________________________

Fiscal Year 2010 2010 2009 2008 2007 2006 2005 & Prior Total

Accident Years

Legal Expense 0 14 0 212 29,262 29,488General Administration 1,180 2,818 1,580 351 1,840 7,769

Operating Result Total 1,180 2,832 1,580 730 111,484 117,806

Servicing Fee 0 0 0 0 5,147 5,147

Share (Previous Period)Paid Loss 0 0 0 167 75,484 75,651Subrogation 0 0 0 0 -249 -249

Legal Expense 0 0 0 0 31 348 379General Administration 483 0 0 0 0 0 483

Operating Result Total 483 0 0 0 31 1,132 1,646

Servicing Fee 0 0 0 0 0 0 0

Share (This Period)Paid Loss 0 0 0 0 0 784 784Subrogation 0 0 0 0 0 0 0

IBNR Provision 1,157 13,901 12,349 13,858 33 2,003 43,301OS Losses Incl IBNR 1,157 13,901 13,900 13,858 367 62,449 105,632

Balance Sheet ItemsOutstanding Losses 0 0 1,551 0 334 60,446 62,331

-This Period 483 0 0 0 31 1,132 1,646

--This Period 15,565 0 0 0 951 59,662 76,178Operating Results

--Years To Date 76,178 15,565 38,021 91,284 46,821 22,790 6,461,105 6,675,586

483 1,180 2,832 1,580 761 112,616 119,452-Years To Date 1,646Net Assessment

Legal Expense 379General Administration 483

Operating Result Total 1,646

Servicing Fee 0

Share (Years To Date)Paid Loss 784Subrogation 0

0 0 14 0 243 29,610 29,867483 1,180 2,818 1,580 351 1,840 8,252483 1,180 2,832 1,580 761 112,616 119,452

0 0 0 0 0 5,147 5,147

0 0 0 0 167 76,268 76,4350 0 0 0 0 -249 -249

Exhibit 11-A

The Accounting & Statistical Manual - Facility … · 2017-12-01 · Facility Association...

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