Board required to determine, account for and report to Commissioner estimate of assessments needed to pay for losses; evaluation of operation of Program.
1. On or before March 1 of each year, the Board shall determine, separately account for and file with the Commissioner an estimate of the assessments needed to fund the losses incurred by the Program of Reinsurance in the previous calendar year for:
(a) Reinsured small employer groups, eligible employees and the dependents of such employees; and
(b) Reinsured eligible persons.
2. If the Board determines that the amount of the assessments against reinsuring carriers needed to fund the losses incurred by the Program of Reinsurance in the previous calendar year will exceed 5 percent of the total premiums earned in the previous calendar year from health benefit plans delivered or issued for delivery in this state by reinsuring carriers and individual reinsuring carriers, the Board shall evaluate the operation of the Program of Reinsurance and report its findings, including any recommendations for changes to the plan of operation, to the Commissioner not later than 90 days after the end of the calendar year in which the losses were incurred. The evaluation must include an estimate of future assessments and administrative costs of the Program of Reinsurance, the appropriateness of the premium charged, the level of retention of insurers under the Program of Reinsurance and the costs of coverage for small employers. If the Board fails to file the report timely with the Commissioner, the Commissioner may evaluate the operations of the Program of Reinsurance and make such amendments to the plan of operation as he determines to be necessary to reduce future losses and assessments.
Last modified: February 27, 2006