Insurance Placement Facility of Delaware
allocation methods contained in a Service Agreement dated February 12, 1985 as amended
September 23, 1994. The Agreement provides for the following:
IPFP will furnish such management and administrative personnel, services and Facilities
as may be required by IPFD for the proper conduct of its affairs
IPFP will maintain appropriate records of all operating costs and expenses.
All direct operating costs, meaning costs which were incurred solely in the operation of
and for the benefit of one Association, will be allocated to the incurring Association.
IPFD will reimburse IPFP for its portion of total operating costs on the following basis:
Unallocated claim costs shall be apportioned by applying the ratio of the total number of claims reported to the total unallocated claims costs excluding direct operating costs above.
All other operating costs, except the direct, shall be apportioned by applying the ratio of the total number of IPFD applications to the total number of IPFD and IPFP applications, to the total of such other operating costs incurred by IPFP.
The agreement remained unchanged during the period of examination.
ACCOUNTS AND RECORDS
The Facility's accounts and records were audited until 2005 by the accounting firm of
KPMG, LLP. For the 2005 audit, the Board of Directors appointed the firm of Smart &
Associates. All audit reports were issued with unqualified opinions.