A. The insurer may choose to designate each year the method of determining assumed expenses for all policy forms from the following:

(1) fully allocated expenses;

(2) marginal expenses; and

(3) a generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the superintendent.

B. Marginal expenses may be used only if greater than a generally recognized expense table. If no generally recognized expense table is approved, fully allocated expenses must be used.

[10/1/98; Recompiled 11/30/01]