The rates and premiums charged for applicable insurance policies must include which of the following?

The correct choice highlights the necessity for insurance rates and premiums to incorporate amounts that will recoup payments made to any relevant association, minus any returns. In the context of surplus lines insurance, it is particularly important for carriers to ensure that they are financially viable and can cover their obligations. This entails adjusting the premiums to offset the payments they have already made. Including these amounts in the premiums helps maintain the financial sustainability of the insurance operation, allowing the insurer to continue providing coverage.

In contrast, while it is important for insurance companies to consider administrative costs, marketing expenses, and basic underwriting costs, these do not capture the primary obligation of recouping payments to an association. Therefore, while these other factors may influence premium calculations, they do not directly relate to the essential requirement of recouping prior payments. This understanding is crucial for ensuring that the overall financial structure of the insurer is sound and capable of supporting its commitments to policyholders.