(a) Unless a longer period has been allowed by the commissioner, a member insurer shall at its option have the right to show a certificate of contribution as an asset in the form approved by the commissioner pursuant to K.S.A. 40-3009, and amendments thereto, at percentages of the original face amount approved by the commissioner, for calendar years as follows: (1) 100% for the calendar year of issuance; (2) 80% for the first calendar year after the year of issuance; (3) 60% for the second calendar year after the year of issuance; (4) 40% for the third calendar year after the year of issuance; (5) 20% for the fourth calendar year after the year of issuance. (b) The member insurer may offset the amount written off by it in a calendar year under subsection (a), against its premium tax liability to this state accrued with respect to business transacted in such year. (c) A member insurer that is exempt from taxes referenced in subsection (a) may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or agent commission. If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate account. (d) Any sums acquired by refund, pursuant to K.S.A. 40-3009, and amendments thereto, from the association that have theretofore been written off by contributing member insurers and offset against premium taxes as provided in subsection (b), and are not then needed for purposes of this act, shall be paid by the association to the commissioner and the commissioner shall remit such moneys to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.
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