Robert D. Booth and Janice Booth, et al. - Page 77

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          accomplished the same result by adjusting the employees' benefits           
          to equal its employer's contributions.  The Prime Plan charged              
          back the employees' claims to their employers' accounts by                  
          carrying the accounts' yearend balances over to future years and            
          limiting an employee's benefits to the amount in his or her                 
          employer's account.  This was an experience-rating arrangement.             
          Mr. DeWeese concluded that experience-rating may occur by                   
          adjusting benefits, rather than premiums, and Mr. Barnhart                  
          agreed.  Mr. Barnhart also acknowledged that the term                       
          "experience-rating" means that, over time, the premiums less                
          expenses equal the benefits.  This credible expert testimony                
          supports our view that the Prime Plan had experience-rating                 
          arrangements with respect to all participating employers.                   
               We also conclude that the Prime Plan had experience-rating             
          arrangements because each employer's relationship to the Trust              
          was more akin to the relationship of an employer to a fund, than            
          of an insurer to an insured.  In the typical setting of a self-             
          funded welfare benefit plan, an employer contributes to a fund              
          from which all of its employees' claims are paid; another                   
          employer's employees may not recover amounts from the first                 
          employer's fund.  An insurer in the typical insurer/insured                 
          relationship, on the other hand, usually collects premiums from             
          many employers and pays the claims of each of the employer's                
          employees.  The insurer typically spreads the risk of claims                






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