How do I determine the maximum amount available for the guaranty assessment credit for line 24 on Form 25-100?
There are two types of guaranty association assessments, Class A and Class B. Class A assessments cover the administrative and overhead costs of the association in the liquidation of an insurer and are available for a one-time credit of 100 percent of the amount paid. Class B assessments supplement the assets of the insurer to pay covered claims and are either 10 percent per year for 10 or more successive years or 20 percent for five or more successive years. Each year’s maximum allowable credit is preprinted on line 24 of the annual tax report, form 25-100.
