§ 5410. Reimbursement fund. (a) The superintendent shall assess each
member of the association an amount sufficient to provide reimbursement
payments, pursuant to the provisions of section 1223(a)(1) of the
federal Urban Property Protection and Reinsurance Act of 1968, to the
agency of the federal government administering the act in an aggregate
amount not to exceed five per centum of the aggregate property insurance
premiums earned in the state during the preceding calendar year on those
lines of insurance reinsured under such act during the calendar year.

(b) The total amount of any assessment on each such member shall be in
the proportion that the premiums earned during the preceding calendar
year by each such member in this state bear to the aggregate premiums
earned in this state during the preceding calendar year on those lines
of insurance reinsured under the federal act during the current year by
all members of the association. Assessments shall be collectible from
all members on and after the forty-fifth day following receipt of a
claim from the federal agency.

(c) The superintendent shall receive all assessments payable on
account of the claim of the federal agency and make all disbursements in
carrying out this section from the riot reinsurance revolving fund which
is continued. Notwithstanding any other law, rule or regulation
requiring that money received for or on behalf of the state shall be
paid into the state treasury, the superintendent shall deposit the
assessments in a separate bank account or accounts in a trust company or
bank having trust powers within the state. All deposits shall be secured
by obligations of the United States or this state and all banks and
trust companies are authorized to give the same. The monies of the fund
may, at the discretion of the superintendent, be invested in obligations
of or guaranteed by this state or the United States. Any income or
earnings derived from such investments shall be deposited in the fund.

(d) The monies in the fund shall be paid on the order of the
superintendent solely for reimbursement payments as provided in
subsection (a) hereof after any investigation the superintendent deems
appropriate to verify the correctness of the claim. Any balance
remaining shall be retained by the superintendent in the fund and used
only for the purpose of meeting future claims of the federal agency.

(e) The superintendent may at any time require any member to furnish
information he deems necessary to determine if the member has complied
with the provisions of this section.

(f) The comptroller shall have the power and authority to audit the
accruals, the receipts, the payments and the expenditure of all monies
of the fund.