Use of excess assessments.
1. If the amount of the assessments exceeds the net losses of the Program of Reinsurance from reinsuring small employers and eligible employees, the excess amount must be retained by the Board and used to offset future losses or to reduce the premiums of the reinsuring carriers.
2. If the amount of the assessments exceeds the net losses of the Program of Reinsurance from reinsuring eligible persons, the excess amount must be retained by the Board and used to offset future losses or to reduce the premiums of the individual reinsuring carriers.
3. As used in this section, “future losses” includes reserves for claims that have been incurred, but have not yet been reported.
Last modified: February 27, 2006