Under this program, an insurer may choose to be excused from its quota of fleetless private passenger orders by a «LAD agreement») between insurers («buy-back contract»). Any insurer («excused insurer») may enter into a buy-back agreement with a qualified insurer that opts for additional orders («service carrier»). 1. The excused insurer must report the redemption costs paid as a negative amortization amount to the insurance and investment exposure on line 5, page 4, as technical insurance products. Conversely, the service carrier should report the redemption costs received as a positive listing amount. TO: ALL LICENSED INSURERS TO WRITE AUTO INSURANCE AT NEW YORK STATE 2. A registration item should be declared by the excused insurer and the service carrier in Appendix 3, coordinating tangible assets. 3. The registration position must be recognized by the excused insurer as the «LAD – Charges Program» and by the service carrier as «LAD Revenue.» In order to ensure a consistent processing of sales contract transactions in the annual and quarterly accounts of contracting insurers, the following method is recommended for the return of the consideration («buy-back tax»): in accordance with Section 5301 (b) of the Insurance Act, the Superintendent of Insurance adopted, on May 21, 1985, a directive amending Section 6 of the New York Automobile Insurance Plan and the Limited Assignment Program (LTD) on May 21, 1985.
RE: LIMITED ASSIGNMENT DISTRIBUTION PROGRAM («LAD»).