D.C. Mun. Regs. tit. 26, r. 26-A2108

Current through Register 71, No. 45, November 7, 2024

Rule 26-A2108 - LIMITATION OF EXPENSES AND LOSSES PAYABLE BY SINKING FUNDS

2108.1

Only two types of disbursements may be made from a sinking fund:

(a) Paid losses; and

(b) Allocated loss adjustment expenses.

2108.2

A paid loss includes all sums paid to claimants, or members, or participants in the sinking fund, in direct settlement or in satisfaction of a judgment for a liability covered by the liability coverage document.

2108.3

An allocated loss adjustment expense is an expense incurred by a sinking fund that is related to a specific claim. Allocated loss adjustment expenses include:

(a) Attorney's fees for claims in a suit;

(b) Adjuster's fees and medical expenses incurred to determine the extent of the sinking fund's liability for particular claims; and

(c) Court related expenses for: expert testimony, stenographic services, summons, and copies of legal documents.

D.C. Mun. Regs. tit. 26, r. 26-A2108

Final Rulemaking published at 36 DCR 5113 (July 21, 1989)