§ 418. Premium payment; reserves.
113 words·~1 min read·
/de/title-18/chapter-4-workers-compensation-self-insurance-groups/418·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Each group shall establish to the satisfaction of the Commissioner a premium payment plan which shall include:
(1)An initial payment by each member of at least 25% of that member’s annual premium before the start of the group’s fund year; and
(2)Payment of the balance of each member’s annual premium in monthly or quarterly installments.
(b)Each group shall establish and maintain actuarially appropriate loss reserves which shall include reserves for:
(1)Known claims and expenses associated therewith; and
(2)Claims incurred but not reported and expenses associated therewith.
(c)Each group shall establish and maintain bad debt reserves based on the historical experience of the group or other groups.