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

760 IAC 1-75-4

Department of Insurance; 760 IAC 1-75-4; filed Apr 14, 2008, 10:28 a.m.: 20080514-IR-760070144FRA Readopted filed 11/17/2014, 3:39 p.m.: 20141217-IR-760140197RFA Readopted filed 11/24/2020, 10:27 a.m.: 20201223-IR-760200464RFA