760 IAC 1-75-4 - Participation agreements
Authority: IC 20-42.5-2-1
Affected: IC 20-42.5-2-1
Sec. 4.
(a) The
participation agreement shall include the following:
(1) Procedures for individual risk pool
participant entry and withdrawal. The participation agreement shall include the
following:
(A) Provisions for any ownership or
investment interest.
(B) Length of
initial membership period or participation period.
(C) Penalties for withdrawal, if
any.
(D) Rights to risk pool assets
or income.
(E) Obligations for any
continuing liabilities for current and future expenses of the risk
pool.
(F) A continuing obligation
for the risk pool to calculate and report incurred but not reported losses
incurred during the risk pool participant's tenure with the risk
pool.
(G) The formula used to
determine how the:
(i) assets;
(ii) liabilities;
(iii) income; and
(iv) expenses;
will be apportioned among risk pool participants or reapportioned among risk pool participants when adding new risk pool participants or deleting retiring risk pool participants.
(H) Provisions delineating a risk
pool participant's voting rights during and after participation
periods.
(2) An
individual risk pool participant's right to obtain, within not more than thirty
(30) days from the date of the request, the individual loss experience for all
lines of coverage purchased by any risk pool participant for the period of time
the risk pool participant was covered by the risk pool.
(3) Procedures for termination of the risk
pool, or the entity operating the risk pool, including allocation of current
and future:
(A) assets;
(B) liabilities;
(C) income; and
(D) expenses;
among current and former risk pool participants.
(b) The
participation agreement may not include any of the following provisions:
(1) A notice of termination of coverage or
withdrawal from the risk pool longer than ninety (90) days.
(2) A provision relieving the risk pool of
liability and requiring the withdrawing risk pool participant to individually
assume, upon termination, any of the pooled losses or claims, whether known or
unknown, occurring during the time the risk pool participant was a member of
the risk pool.
(3) A provision that
entitles a risk pool participant to segregated investments.
Notes
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No prior version found.