(a) Treatment. A State residual market insurance entity or a State workers' compensation fund that does not share profits and losses with a private sector insurer is deemed to be a separate insurer under the Program.
(b) Premium calculation. A State residual market insurance entity or a State workers' compensation fund that is deemed to be a separate insurer should follow the guidelines specified in Sec. 50.5(d)(1) or 50.5(d)(2) for the purposes of calculating the appropriate measure of direct earned premium. [68 FR 59720, Oct. 17, 2003]