Management expense allocation requires Board-approved policies covering direct, indirect, acquisition, renewal, implementation, and regulatory submission requirements.

Every IIO must maintain a Board-approved policy for allocating direct management expenses and apportioning indirect management expenses among insurance segments. The policy must cover applicable expenses, allocation or apportionment bases, acquisition and renewal expenses, and implementation requirements. It must be submitted to the Authority when directed. An unincorporated IIO may adopt its parent entity's Board-approved policy where it meets the required regulatory standards.

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