Section 3 AAC 31.525 - Premiums and other financial matters(a) A health care insurer shall forward all premiums to the association for each risk ceded to the program and may not retain any portion of the premium.(b) A health care insurer shall report to the association amounts collected by a health care insurer for (1) third party liabilities; (2) overpayment recoveries;(3) estimated federal cost-sharing reduction payments made under 42 U.S.C. 18071;(4) commercial reinsurance recoveries; (5) pharmacy rebates; and(6) any other similar amounts with respect to risk ceded to the program.(c) The association shall retain all premiums it receives in excess of administrative and operational expenses and claims paid for ceded risks in a calendar year and shall apply any excess premiums toward payment of future administrative and operational expenses and claims incurred by ceded risks in subsequent years of the program.(d) Premiums received by the association for the program will be used first to pay, or to establish reasonable reserves for payment of, administrative and operational expenses of the program and second to pay claims for risks ceded to the program. Eff. 2/2/2013, Register 205; am 12/22/2016, Register 220, January 2017; am 11/1/2018,Register 228, January 2019Authority:AS 21.06.090
AS 21.55.040
AS 21.55.220
AS 21.55.400
AS 21.55.430