Other activities reasonably attributable to those operations listed above, such as: keeping general and detail records; paying and receiving; general clerical, secretarial, office maintenance, supervisory and executive work; and handling personnel, supplies, mail, etc.

Commission and Allowances: When the whole or a part of any amount in the operating expense classifications Commission and Brokerage-Direct, and Allowances to Managers and Agents is paid specifically for services other than those set forth under Acquisition, Field Supervision and Collection Expenses, and when such services are not duplicated or otherwise compensated by the company, the amount thereof shall be allocated to expense groups other than Acquisition, Field Supervision and Collection, and such allocations shall be justified by detailed statements and data calculated and prepared in accordance with the methods described in these instructions showing amounts of expenditures properly allocated to expense groups and lines of business.

When Allowances to Managers and Agents represent a division of expenses shared with other companies, the aforementioned statements and data shall show the division of such shared expenses calculated and prepared in accordance with the methods prescribed in these instructions.

The calculation and preparation of the aforementioned statements and data shall be subject to verification and audit by insurance department personnel.

The instructions under the heading Commission and Allowances do not apply to Commission and Brokerage-Reinsurance Assumed, or Commission and Brokerage-Reinsurance Ceded.

Ins 6.30(3)(a)2.d. d. Taxes

Taxes shall comprise the totals of the operating expense classification Taxes, Licenses and Fees.

Ins 6.30(3)(a)2.e. e. General Expenses

General Expenses shall comprise all expenses not assignable by these instructions to other expense groups.

Ins 6.30(3)(a)3. 3. Allocation to Expense Groups

Ins 6.30(3)(a)3.a. a. Expenses shall be allocated to expense groups as follows:

- See PDF for table

Ins 6.30(3)(a)3.b. b. Definitions

For definitions of the terms Overhead on Salaries and Special Studies, see s. Ins 6.30 (2) (a) 1. b.

Ins 6.30(3)(a)3.c. c. Other Bases Permitted or Prescribed

For those operating expense classifications permitting the basis Overhead on Salaries, any other basis of allocation may be adopted which yields more accurate results. The basis Overhead on Salaries shall not be used if clearly inappropriate.

Ins 6.30(3)(a)3.d. d. Other Instructions Applicable

In making any allocations to expense groups, companies shall observe the General Instructions Regarding Allocation Bases (see s. Ins 6.30 (5) (a) 2.).

Ins 6.30(3)(a)3.e. e. Records Required

The methods followed in allocating to expense groups shall be described, kept and supported as set forth under Detail of Allocation Bases (see s. Ins 6.30 (5) (a) 3. c.).

The effects of the application to each operating expense classification of all bases of allocation shall be shown on records kept in clear and legible form. Such records shall be readily available for examination.

Ins 6.30(4) (4) Part IV.

Ins 6.30(4)(a) (a) Instruction relating to allocation to lines of business.

Ins 6.30(4)(a)1. 1. Lines of Business

The lines of business for allocation of expenses shall be the following:

Fire and Allied Lines:
  Fire
  Extended Coverage
  Other
  Homeowners Multiple Peril
  Commercial Multiple Peril
Ocean Marine
Inland Marine

Automobile Liability:
  Bodily Injury (including medical payments coverage)
Property Damage
Automobile Physical Damage:
  Fire, Theft and Comprehensive
  Collision
Worker’s Compensation
Liability Other than Automobile:
  Bodily Injury
  Property Damage
Fidelity
Surety
Glass
Burglary and Theft
Individual Accident and Health:
  Accident only
  Accident and Health
  Hospital and Medical Expense
Group Accident and Health Boiler and Machinery

Ins 6.30(4)(a)2. 2. Allocation of Expenses to Lines of Business

Ins 6.30(4)(a)2.a. a. The allocation of expenses to lines of business shall be by expense groups. Each classification of expense within each expense group shall be allocated separately to lines of business on the bases of allocation prescribed as follows.