Texas Labor Code - Section 407A.354. Premium Payment Plan; Reserves
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Texas Lawyer > Labor Code > Texas Labor Code - Section 407A.354. Premium Payment Plan; Reserves
§ 407A.354. PREMIUM PAYMENT PLAN; RESERVES. (a) Until
the assets of a group reach a level sufficient to cover the group's
liabilities, each group shall establish to the satisfaction of the
commissioner a premium payment plan.
(b) As long as the assets of the group remain sufficient to
cover the group's liabilities, the group may determine its own
premium plan if the premium plan is disclosed to each member at the
time of application and is filed with the commissioner.
(c) Each group shall establish and maintain actuarially
appropriate loss reserves, which must include reserves for:
(1) known claims and expenses associated with those
claims; and
(2) claims incurred but not reported and expenses
associated with those claims.
(d) Each group shall establish and maintain bad debt
reserves based on the historical experience of the group or of other
groups composed of similar employer members.
Added by Acts 2003, 78th Leg., ch. 275, § 1, eff. Sept. 1, 2003.
Section: 407A.301 407A.302 407A.303 407A.304 407A.351 407A.352 407A.353 407A.354 407A.355 407A.401 407A.402 407A.403 407A.404 407A.451 407A.452
Last modified: August 10, 2007
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