Sec. 96.7. Plan

(a) The plan filed with the superintendent for establishment of a surplus management account shall contain the following information:

(1) a general statement of the purposes and objectives of the surplus management account;

(2) a statement that the establishment and maintenance of the surplus management account shall not alter established policyholder dividend distribution practices;

(3) the initial allocation to the surplus management account, the sources thereof and the method used in determining the amount thereof;

(4) the method by which the amount and timing of future allocations to the surplus management account will be determined;

(5) circumstances under which charges to the surplus management account may be made;

(6) the method of allocating income and expenses between the lines of business and the surplus management account;

(7) a statement as to whether the insurer intends to report the surplus management account as a separate line of business on the insurer's annual statement and, if not, a statement as to how the insurer will allocate income and expenses with respect to the surplus management account to the lines of business;

(8) the manner in which the balance of the surplus management account will be determined; and

(9) information with respect to any other feature of the plan which requires the approval of the superintendent.

(b) Any insurer whose plan has been approved by the superintendent may at any time seek the approval of the superintendent to amend such plan.

(c) Approval of a plan pursuant to this section shall permit an insurer to make allocations and charges to a surplus management account in accordance with the plan and the provisions of this Part for an initial lustrum following the date such account is established. Thereafter, the superintendent may approve allocations and charges for subsequent lustra, subject to the requirements of this Part and to such other terms and conditions consistent with the provisions of this Part as the superintendent shall deem appropriate.

(d) Allocations and charges to the surplus management account that result in transfers of assets shall be valued at the book value of the assets used for annual statement purposes.