NAC686A.4705. Method for determining assumed expenses; use of marginal expenses.

     1. An insurer may, pursuant to the provisions of subsection 2, designate each year the method of determining assumed expenses for all policy forms from among the following methods:

     (a) Fully allocated expenses;

     (b) Marginal expenses; and

     (c) A generally recognized expense table that is based on fully allocated expenses that are representative of a significant portion of insurance companies and is approved by the Commissioner.

     2. Marginal expenses may be used to determine assumed expenses only if they are greater than a generally recognized expense table. If a generally recognized expense table is not approved by the Commissioner, fully allocated expenses must be used.

     (Added to NAC by Comm’r of Insurance by R089-97, eff. 1-14-98)