(1) In the event an insurer fails to timely report its paid losses for the previous year by the following March 1, the department will estimate the insurers' paid losses. The department may consult with the advisory organization or other sources regarding the appropriate amount to estimate as those paid losses. The department may also use that estimate as the basis for the SIF and IARA assessment as well.

(2) The estimate will be used to calculate the administration fund assessments for those insurers who must pay their assessment directly to the department. For those insurers who are responsible to collect the administration fund assessment surcharge from its policyholders, the estimate will be used in the computation of the percentage rate of premium surcharge.

(3) The department will re-calculate the assessments after the insurer reports its paid losses. The department will then give the insurer whatever credit may be due if the July 1 payment of the estimated assessments exceeds the amount due following the re-calculation.