17B:27A-10.7 Requests for reinsurance payments.
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/nj/title-17b/chapter-27a/17b-27a-10-7·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
7. a. An eligible carrier shall submit a request to the board for reinsurance payments when the eligible carrier's total amount paid for an enrollee meets the criteria for reinsurance payments.
b. An eligible carrier shall make requests for reinsurance payments in accordance with any requirements established by the board.
c. An eligible carrier shall calculate the premium amount the carrier would have charged for the applicable benefit year if the plan was not in effect and submit this information as part of its rate filing.
d. An eligible carrier shall maintain documents and records, whether paper, electronic, or in other media, sufficient to substantiate the requests for reinsurance payments made pursuant to this section for a period of at least six years. An eligible carrier shall also make those documents and records available upon request from the commissioner for purposes of verification, investigation, audit, or other review of reinsurance payment requests.
e.
(1)At least once every five years the board shall engage an independent audit firm to audit eligible carriers that receive reinsurance payments to assess compliance with the requirements of this act. The eligible carrier shall cooperate with an audit. If an audit results in a proposed finding of material weakness or significant deficiency with respect to compliance with any requirement of this act or overpayment of reinsurance payments in the audited benefit years, the eligible carrier may respond to the draft audit report within 30 days of the draft audit report's issuance.
(2)Within 30 days of the issuance of the final audit report, if the final audit results in a finding of material weakness or significant deficiency with respect to compliance with any requirement of this act or overpayment of reinsurance payments in the audited benefit years, the eligible carrier shall:
(a)provide a written corrective action plan to the board for approval, that includes recoupment of any reinsurance overpayments;
(b)upon board approval, implement the corrective action plan described; and
(c)provide the board with documentation of the corrective actions taken.
L.2018, c.24, s.7.