Section 220-RICR-90-00-2.6 - Reinsurance PaymentsA. A reinsurance eligible issuer becomes eligible for a reinsurance payment when the claims costs for at least one reinsurance eligible individual's covered benefits in a calendar year exceed the attachment point.B. The Director will calculate the total reinsurance payment owed to each reinsurance eligible issuer. 1. Subject to §§ 2.6(B)(2) and 2.6(B)(3) of this Part, the reinsurance payment made to each reinsurance eligible issuer for a benefit year will be the product of the coinsurance rate and the portion of the reinsurance eligible issuer's total reinsurance eligible claims for the benefit year that fall between the attachment point and the reinsurance cap.2. The Director will uniformly reduce or increase the coinsurance rate to the extent necessary, but at no time shall the increase exceed 100%, to ensure that reinsurance payments equal the total available funding for the benefit year, as determined by the Director in his or her sole discretion.3. In making the calculation under § 2.6(B)(1) of this Part, the Director in his or her sole discretion may disregard any or all reinsurance eligible claims reported by a reinsurance eligible issuer under § 2.4 of this Part that cannot be verified as part of the audit described under § 2.7(A)(1) of this Part.C. The program will issue reinsurance payments to all reinsurance eligible issuers on an annual basis in the year following each benefit year.D. Payments will be made directly to reinsurance eligible issuers by a method designated by the Director.E. The program will not issue reinsurance payments if the Director determines that a reinsurance eligible issuer has substantively failed to comply with this Part.220 R.I. Code R. 220-RICR-90-00-2.6
Adopted effective 12/4/2019