(a) As used in this section, “reserve balance” means the amount in a fund that includes the existing balance, minus the claims that have been incurred but not reported, case reserves, and unearned premium reserves for each year for the State Captive Insurance Program.
(b) (1) Beginning on December 1, 2026, and annually thereafter, the Secretary of the Department of Shared Administrative Services shall take any actions necessary to achieve and maintain an optimal reserve balance to ensure the solvency of the program as actuarially determined and commensurate with the insured exposure.(2) As of December 1, 2025, an optimal reserve balance amount is no less than fifty million dollars ($50,000,000) or no more than seventy-five million dollars ($75,000,000).(3) The secretary shall annually establish an optimal reserve balance to ensure solvency of the program as actuarially determined and commensurate with the insured exposure of the program with the approval of the State Board of Finance and the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
(1) Beginning on December 1, 2026, and annually thereafter, the Secretary of the Department of Shared Administrative Services shall take any actions necessary to achieve and maintain an optimal reserve balance to ensure the solvency of the program as actuarially determined and commensurate with the insured exposure.
(2) As of December 1, 2025, an optimal reserve balance amount is no less than fifty million dollars ($50,000,000) or no more than seventy-five million dollars ($75,000,000).
(3) The secretary shall annually establish an optimal reserve balance to ensure solvency of the program as actuarially determined and commensurate with the insured exposure of the program with the approval of the State Board of Finance and the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
(c) Annually by December 1, the secretary shall:(1) Calculate the projected reserve balance for:(A) The remaining calendar year; and(B) The next three (3) calendar years;(2) Determine whether the amount of revenue collected by the secretary is projected to satisfy the optimal reserve balance for the program established under subdivision (b)(1) of this section for the remaining calendar year;(3) Notify the board and the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, of the projected reserve balance for the remaining calendar year as described in subdivision (c)(1)(A) of this section; and(4) Submit for prior approval by the board and the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, his or her plan to achieve or maintain the optimal reserve balance.
(1) Calculate the projected reserve balance for:(A) The remaining calendar year; and(B) The next three (3) calendar years;
(A) The remaining calendar year; and
(B) The next three (3) calendar years;
(2) Determine whether the amount of revenue collected by the secretary is projected to satisfy the optimal reserve balance for the program established under subdivision (b)(1) of this section for the remaining calendar year;
(3) Notify the board and the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, of the projected reserve balance for the remaining calendar year as described in subdivision (c)(1)(A) of this section; and
(4) Submit for prior approval by the board and the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, his or her plan to achieve or maintain the optimal reserve balance.
(d) If the secretary's determination under subdivision (c)(2) of this section does not equal or exceed the acceptable reserve balance amount as described in subdivision (b)(3) of this section, the secretary shall notify the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, of the need to convene to consider providing additional funding.
(e) (1) If during the Legislative Council's or, if the General Assembly is in session, the Joint Budget Committee's, review of the secretary's determination as required under subdivision (c)(4) of this section it is determined that additional funding is needed to maintain the acceptable reserve balance amount as described in subdivision (b)(3) of this section, the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, may:(A) Recommend that the Governor call an extraordinary session of the General Assembly; or(B) Take further action as may be appropriate.(2) If the General Assembly fails to provide funding by March 1 following the Legislative Council's or, if the General Assembly is in session, the Joint Budget Committee's review, the secretary shall initiate a process to collect the required additional revenue from program participants through premium rate increases or reducing program benefits, or both, for the next plan year.
(1) If during the Legislative Council's or, if the General Assembly is in session, the Joint Budget Committee's, review of the secretary's determination as required under subdivision (c)(4) of this section it is determined that additional funding is needed to maintain the acceptable reserve balance amount as described in subdivision (b)(3) of this section, the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, may:(A) Recommend that the Governor call an extraordinary session of the General Assembly; or(B) Take further action as may be appropriate.
(A) Recommend that the Governor call an extraordinary session of the General Assembly; or
(B) Take further action as may be appropriate.
(2) If the General Assembly fails to provide funding by March 1 following the Legislative Council's or, if the General Assembly is in session, the Joint Budget Committee's review, the secretary shall initiate a process to collect the required additional revenue from program participants through premium rate increases or reducing program benefits, or both, for the next plan year.
(f) (1) If the secretary determines that the reserve balance for the program will exceed seventy-five million dollars ($75,000,000), the secretary may elect to use the excess reserve balance by lowering the premium rates for the next plan year with prior approval from the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.(2) If the secretary does not elect to use the excess reserve balance in the manner prescribed under subdivision (f)(1) of this section, the secretary shall report to the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, the reason for the secretary's decision not to use the excess reserve balance.
(1) If the secretary determines that the reserve balance for the program will exceed seventy-five million dollars ($75,000,000), the secretary may elect to use the excess reserve balance by lowering the premium rates for the next plan year with prior approval from the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
(2) If the secretary does not elect to use the excess reserve balance in the manner prescribed under subdivision (f)(1) of this section, the secretary shall report to the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, the reason for the secretary's decision not to use the excess reserve balance.